EDIT w/offer: Current car buying market & Lexus 450h

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bogletay
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Joined: Tue Nov 10, 2020 1:57 pm

EDIT w/offer: Current car buying market & Lexus 450h

Post by bogletay »

Hey Bogleheads -

We're in the market for a family SUV that will last and be durable to two kids. We're looking at the Lexus 450h and would plan to pay cash for the vehicle we end up buying. I'm just struggling mentally with car prices right now/the car buying market in general and don't want to end up regretting the purchase in a few years. How are others dealing with the current buying market? Should we wait it out 1-2 years? This seems like a great long-term reliable car, but we'll undoubtedly pay a premium for it in the current market...how would you handle?'

EDIT: Dealer is offering $1,000 off MSRP...thoughts?

Many thanks!
Last edited by bogletay on Sat Oct 23, 2021 7:40 am, edited 1 time in total.
adestefan
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Re: Current car buying market & Lexus 450h

Post by adestefan »

I’d wait.
adamthesmythe
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Re: Current car buying market & Lexus 450h

Post by adamthesmythe »

1. Do you hafta?

2. I suppose it's possible that not all models are in extreme short supply and selling for extreme markups over msrp.

3. Do you fear asking questions at a dealership?
Trader Joe
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Re: Current car buying market & Lexus 450h

Post by Trader Joe »

bogletay wrote: Fri Oct 22, 2021 6:10 pm Hey Bogleheads -

We're in the market for a family SUV that will last and be durable to two kids. We're looking at the Lexus 450h and would plan to pay cash for the vehicle we end up buying. I'm just struggling mentally with car prices right now/the car buying market in general and don't want to end up regretting the purchase in a few years. How are others dealing with the current buying market? Should we wait it out 1-2 years? This seems like a great long-term reliable car, but we'll undoubtedly pay a premium for it in the current market...how would you handle?

Many thanks!
What is the premium?
bubbly
Posts: 288
Joined: Tue Jun 16, 2015 4:21 pm

Re: Current car buying market & Lexus 450h

Post by bubbly »

The 450h is in very short supply. I searched on Carmax and there is none for model year 2020 and up. There are a few model year 2019s but 2020 is a big threshold as that is the first year where Apple CarPlay was introduced to the platform. I actually just recently bought a fully loaded 2020 Lexus Rx350 for about 7k under MSRP on with 10.5k miles. Not the greatest deal under normal circumstances but good enough given the current shortage. For reference, the dealer wanted the same price for a brand new model year 2021 with lesser features.

I wanted a 450h but could not find one on Carmax and gave up after looking for a few months.

I prefer Carmax because they have a 30 day/1500 mile return policy and a 90 day/4000 mile warranty for piece of mind that I don’t mind paying extra for. It is reflected in their prices however and you could probably find a better deal but risk small issues down the road that aren’t apparent upon initial purchase.
goldendad
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Re: Current car buying market & Lexus 450h

Post by goldendad »

I am waiting. I am guessing it will take a couple of years for the market to get back to what we are used to.
jarjarM
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Re: Current car buying market & Lexus 450h

Post by jarjarM »

We're waiting, based on what I know about the chip market shortage, I'll start looking toward end of 2022 and beginning of 2023
bgf
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Joined: Fri Nov 10, 2017 8:35 am

Re: Current car buying market & Lexus 450h

Post by bgf »

I bought the car I wanted and love it. Lexus ES300h. :sharebeer
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"
Activesloth
Posts: 133
Joined: Wed Oct 20, 2021 7:03 pm

Re: Current car buying market & Lexus 450h

Post by Activesloth »

My wife bought a Lexus 450h a few months ago. I did the shopping online, and the salesperson delivered the car to my home which is 85 miles from the dealership. We didn’t have to pay any mark ups but I’m not sure whether that has changed recently. Best thing about home delivery is you skip the dreaded finance office.
acegolfer
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Re: Current car buying market & Lexus 450h

Post by acegolfer »

I'd wait. But if you need the car right now (which doesn't seem like it), then visit/call as many dealerships as you can. Some dealers 3 hours away may even deliver to your door after agreeing the price on the phone.
Dave55
Posts: 2018
Joined: Tue Sep 03, 2013 2:51 pm

Re: Current car buying market & Lexus 450h

Post by Dave55 »

I tried to buy a 450h last May and could not. So I settled for an RX 350 and got a great deal on it. I did own a 450h previously and it is a great car.

Dave
"Reality always wins, your only job is to get in touch with it." Wilfred Bion
blastoff
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by blastoff »

If you're concerned about cost, the biggest driver of that is probably deciding to buy a new car that is a bit luxurious.

I don't think paying a several grand more or less is the biggest driver of your ownership cost.

In this environment, a grand off MSRP seems reasonable.
Leesbro63
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by Leesbro63 »

bogletay wrote: Fri Oct 22, 2021 6:10 pm Hey Bogleheads -

We're in the market for a family SUV that will last and be durable to two kids. We're looking at the Lexus 450h and would plan to pay cash for the vehicle we end up buying. I'm just struggling mentally with car prices right now/the car buying market in general and don't want to end up regretting the purchase in a few years. How are others dealing with the current buying market? Should we wait it out 1-2 years? This seems like a great long-term reliable car, but we'll undoubtedly pay a premium for it in the current market...how would you handle?'

EDIT: Dealer is offering $1,000 off MSRP...thoughts?

Many thanks!
A family member bought this exact car...well, the long version and got $2K off a 2022 from a dealer in Dayton, Ohio. So at $1K you are in the ballpark in today's market.
psteinx
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by psteinx »

bogletay wrote: Fri Oct 22, 2021 6:10 pm EDIT: Dealer is offering $1,000 off MSRP...thoughts?
1) Is it $1000 off the MSRP + dest (+ applicable state charged tax, NOT dealer admin fees), or is it $1000 off of MSRP + dest + junk add ons + big admin fee?

2) I don't really know what a Lexus 450h is, nor what trim you're looking for. If it's an uptrim, $70K version of something you could (normally) get in the Toyota lineup for $40K, then there's basically a lot of manufacturer profit margin already embedded, and $1000 off does not impress me. If it's more modestly priced relative to similar Toyota or just generally to what it offers, then that's better.

3) In general, you just have to decide if your need/want for a new vehicle (either an addition to your current set of vehicles, or an upgrade) is important enough to you to essentially overpay to have it now vs. 6/12/18/?? months from now. Nobody likes the feeling of overpaying, but there aren't great alternatives at the moment, and if the value proposition is there for you...
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firebirdparts
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by firebirdparts »

bogletay wrote: Fri Oct 22, 2021 6:10 pm EDIT: Dealer is offering $1,000 off MSRP...thoughts?

Many thanks!
Gosh, I think you should just take it. They make quite a fine vehicle.
This time is the same
GmanJeff
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by GmanJeff »

bogletay wrote: Fri Oct 22, 2021 6:10 pm
I'm just struggling mentally with car prices right now/the car buying market in general and don't want to end up regretting the purchase in a few years.
Will you really keep reflecting on the purchase price over the life of the vehicle? I suspect that in a few years you'll neither remember what you paid for it nor care.
amindu
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by amindu »

bogletay wrote: Fri Oct 22, 2021 6:10 pm Hey Bogleheads -

We're in the market for a family SUV that will last and be durable to two kids. We're looking at the Lexus 450h and would plan to pay cash for the vehicle we end up buying. I'm just struggling mentally with car prices right now/the car buying market in general and don't want to end up regretting the purchase in a few years. How are others dealing with the current buying market? Should we wait it out 1-2 years? This seems like a great long-term reliable car, but we'll undoubtedly pay a premium for it in the current market...how would you handle?'

EDIT: Dealer is offering $1,000 off MSRP...thoughts?

Many thanks!
Shop a lot of dealers including out of state. In nov 2020 I got 12% off a new 2021 RX 350. They barely had any vehicles on the lot and this one wasn’t even on the lot but was in transit.
Valuethinker
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by Valuethinker »

GmanJeff wrote: Sun Oct 24, 2021 11:02 am
bogletay wrote: Fri Oct 22, 2021 6:10 pm
I'm just struggling mentally with car prices right now/the car buying market in general and don't want to end up regretting the purchase in a few years.
Will you really keep reflecting on the purchase price over the life of the vehicle? I suspect that in a few years you'll neither remember what you paid for it nor care.
You'd be surprised.

My father knew what price he had paid for every car he had ever owned - in 2 countries of residence. From 1952 to 2012 (the last couple of decades he only bought a new car every 10 years or so).
Valuethinker
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by Valuethinker »

bogletay wrote: Fri Oct 22, 2021 6:10 pm Hey Bogleheads -

We're in the market for a family SUV that will last and be durable to two kids. We're looking at the Lexus 450h and would plan to pay cash for the vehicle we end up buying. I'm just struggling mentally with car prices right now/the car buying market in general and don't want to end up regretting the purchase in a few years. How are others dealing with the current buying market? Should we wait it out 1-2 years? This seems like a great long-term reliable car, but we'll undoubtedly pay a premium for it in the current market...how would you handle?'

EDIT: Dealer is offering $1,000 off MSRP...thoughts?

Many thanks!
In this market that's probably as close to a deal as you can get.

It's likely the chip shortages will not be resolved before early 2023.. could be later for some. New "fabs" (semiconductor manufacturing facilities) can cost $5-10bn each and take several years to construct & fully kit out.
JDave
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by JDave »

You'd be fine with a Corolla.
Californiastate
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by Californiastate »

JDave wrote: Sun Oct 24, 2021 4:46 pm You'd be fine with a Corolla.
I hear they make a decent rickshaw nowadays. You get the exercise and Uber income.
Blanco 5.0
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Re: EDIT w/offer: Current car buying market & Lexus 450h

Post by Blanco 5.0 »

The 450h is a wonderful SUV. Smooth and quiet. If you wait a bit you can compare to the new Lexus NX 350h. A major redesign that has gotten very favorable initial reviews, particularly the user interface. Or the NX 450+. Same drivetrain as 350H but with 36 miles of pure EV as its a PHEV with 7500 tax credit.

THe Lexus hybrids are really niice cars.
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