Author Topic: the absurdity - trade 2-3 year old luxury car for a brand new luxury car  (Read 5203 times)

Valhalla

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I was helping some relatives research the new Lexus models (they are FIRE and this will the be the very last car they will ever buy)... and I came across this thread:  http://www.clublexus.com/forums/nx-models/768015-anyone-trade-their-rx-350-for-nx.html

The absurdity of trading in a 2 - 3 year old Lexus RX350 for a shiny new NX200t ... blows my mind.

It's already an absurdity to even consider buying a Lexus for the vast majority of people... a wasteful luxury that I can't fathom.  Oil changes are $100+.  Tire rotation? $100+ (you can get tires rotated for free at many places)...

But to pile on the stupidity, trade in a virtually still brand new Lexus for an even newer one, that's a special kind of stupidity.   Never mind that buying a brand new car is a bad idea, buying a brand new luxury car is a bad idea, trading in a car is a bad idea. Combine all three bad ideas - you get the holy trinity of pure retardation.

The car buying habit is one of the worst financial habits of most people... I think as a car culture this country literally thrives on stupid financial decisions.
« Last Edit: April 11, 2015, 02:11:50 PM by Valhalla »

TheGrimSqueaker

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It's definitely a trifecta of less-than-wise things to do.  There's a far cheaper way to get that "new car smell".  Many auto parts stores sell it in a spray bottle or air freshener.

scottish

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People buy all kinds of crazy stuff.

There's this huge marketing machine trying to convince them to go and buy stuff.    It's fascinating in a way.   I remember when I was younger, I used to buy some crazy stuff, although nothing as expensive as a lexus.   I look back now and shake my head at myself.    In hindsight, much of the urge to shop went away when I cancelled the satellite TV subscription.   

I try not to be judgmental - lots of my colleagues drive late model BMWs, and they don't appreciate being judged!  I'm still judgmental about people who go and buy expensive stuff to impress people though.

KungfuRabbit

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It's definitely a trifecta of less-than-wise things to do.  There's a far cheaper way to get that "new car smell".  Many auto parts stores sell it in a spray bottle or air freshener.

"new car smell" is a toxic mixture of hundreds of adhesives and chemicals that go into making the car, many of the chemicals within the mixture considered carcinogenic.

So not only will buying a used car save you money, it could save your life.

KungfuRabbit

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One of his reasons:

"2. It's better on gas."

Lets say between taxes, registration, depreciation, etc, he loses $10,000 jumping cars (ignoring the cost of the car itself, just the money lost of buying a new car and trading it in 2 years later).  Lets also assume he saves ~10% on gas mileage, his decision will pay off in 100 years!!!! ***

***unless you give money value as invested, but who does that??


<<<end of sarcasm>>>

Valhalla

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.   

I try not to be judgmental - lots of my colleagues drive late model BMWs, and they don't appreciate being judged!  I'm still judgmental about people who go and buy expensive stuff to impress people though.
No need to judge them, you can laugh at them when you can quit work while they live paycheck to paycheck until they're dead.

Valhalla

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One of his reasons:

"2. It's better on gas."

Lets say between taxes, registration, depreciation, etc, he loses $10,000 jumping cars (ignoring the cost of the car itself, just the money lost of buying a new car and trading it in 2 years later).  Lets also assume he saves ~10% on gas mileage, his decision will pay off in 100 years!!!! ***

***unless you give money value as invested, but who does that??


<<<end of sarcasm>>>
But hey, as long as they're happy right?  That's the often quoted response "It makes me happy so I justify blowing money"...

I feel sorry for people who base their happiness on shiny new things, because they will never be happy.

Clean Shaven

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It's already an absurdity to even consider buying a Lexus for the vast majority of people... a wasteful luxury that I can't fathom.  Oil changes are $100+.  Tire rotation? $100+ (you can get tires rotated for free at many places)...

What makes you think that oil changes or tire services cost any more on a RX350 (basically a Highlander) or on a NX200 (basically a RAV4) than their Toyota cousins?

Valhalla

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What makes you think that oil changes or tire services cost any more on a RX350 (basically a Highlander) or on a NX200 (basically a RAV4) than their Toyota cousins?
These are Lexus dealer prices.   Do you think most people who buy a Lexus is going to take it to a Toyota dealer or do it themselves?  Nope, they're going to pay the rapey dealer prices.  When you buy a luxury car, you typically buy into the luxury car eco-system, including the service.

Clearly you have not been consumerized enough to know these absurdly high costs of owning a luxury car. Go out and spend more!
« Last Edit: April 11, 2015, 03:47:27 PM by Valhalla »

Clean Shaven

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You get one guess as to what's parked in my garage.

Valhalla

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You get one guess as to what's parked in my garage.
So you have a Lexus?  So?  Are you going to trade it in for a new Lexus like those folks?

Not sure what your point is... color me unimpressed.

I have a $100k auto collection, Lexus's do not impress me the least bit.

Clean Shaven

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My point is that your point about ridiculously high service fees is wrong.

danny9m

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I was thinking about looking at a used Lexus but the prices are absurd and the new models are not being rated as high as fords and Chevys.  I don't know how they get these prices. 


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SnackDog

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Trading your car to a dealer can save you a fortune in tax in many states, assuming you can not sell it privately for enough more to offset the tax benefit.

Etihwdivadnai

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And if we are talking "absurd dealership charges" for "luxury" cars then I have a lovely story for you:

I bought a second-hand car from a Mercedes dealership.
It still had nearly a year's warantee still left to run.
So I took it back in to the same dealership for its (last) dealer-service for requisite stamp in service history.

When the "service manager" brough the invoice to me he looked at it and said "that cannot be right"
and took it away again before I had even seen the total amount.

He came back saying that the (low) amount was correct because the parts costs and labour cost hourly rate for servicing Smart cars was half what it was to service Mercedes cars.

Same mechanics, same service bays, same tools, just 1/2 of the price.

Needless to say, I never went back there and I will not be buying a Mercedes.

Davids

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Honestly if someone is going to be that dumb then it makes more sense to lease the vehicle.

Indexer

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I'm not as surprised by this 1 guy as I am that there is an entire forum dedicated to this nonsense.  Its like the anti-mustachian forums of shame on overdrive.

One guy lists owning...
15 Audi S5 Coupe- Florett Silver/Black/Carbon Atlas/Technology Package/B&O/Adaptive Suspension/Sport Differential
'13 Infiniti G37 Convertible- Graphite Shadow/Graphite/Premium
Gone but not forgotten:
'13 Lexus GS F Sport- Liquid Platinum/Cabernet/ML/HUD/DRS

But my favorite post is...
Quote
My 2-year lease ended and I gave in my 2013 RX for the NX.

A car purchase is an expense, not an investment, and for some getting into a new car every couple years (like me) is part of their lifestyle much like for others money is spent on smoking, drinking, and often eating out (not me). At the end of the day, you don't need to be super well off to own a Lexus nowadays if you save up for one.

He is talking about SAVING money... to LEASE a car.  WTF??????

paddedhat

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I have a customer who buys a new Caddy CTS every three to four years. He then puts stupid amounts of miles on it, like 25-30K a year. The dealer then gives his $20K off the list price of a new one, he finances the 40K difference, and the cycle starts again. I can't even imagine what his cost per mile is, but given the fact that his last one was a real POS that loved to be in the shop, it's got to be one of the dumbest financial moves imaginable.

gimp

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I have a customer who buys a new Caddy CTS every three to four years. He then puts stupid amounts of miles on it, like 25-30K a year. The dealer then gives his $20K off the list price of a new one, he finances the 40K difference, and the cycle starts again. I can't even imagine what his cost per mile is, but given the fact that his last one was a real POS that loved to be in the shop, it's got to be one of the dumbest financial moves imaginable.

~100k miles, $40k, not including gas or maintenance or financing costs, puts cost per mile at about 40 cents a mile. That's a pretty impressively high number. From your description, factoring in gas - well, the new model gets 30 mpg highway, I assume most of those miles are highway (I hope), which is still $10-15k depending on how much gas costs over the period and what octane he uses. If maintenance is another $10k over the term, that'd be 60-65 cents a mile not including financing costs. Pretty impressive.

Also, the whole new car to new car thing is so silicon valley. People love doing that here. At least most of them have the good sense to lease instead of buy and sell every few years...

Valhalla

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My point is that your point about ridiculously high service fees is wrong.
Um no you have not made any point in this regard.

Lexus (and most other luxury dealers) services prices are 3-4 times higher than a non-luxury car.  Most people who buy new luxury cars are going to get them serviced at the luxury dealer, to get the luxury treatment, including loaners, etc.  They are NOT going to take their brand new Lexus to a Toyota dealer for service.

Unless you have some down-to-earth Lexus dealer service costs to compare, then you have not made any point.

Valhalla

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I'm not as surprised by this 1 guy as I am that there is an entire forum dedicated to this nonsense.  Its like the anti-mustachian forums of shame on overdrive.

One guy lists owning...
15 Audi S5 Coupe- Florett Silver/Black/Carbon Atlas/Technology Package/B&O/Adaptive Suspension/Sport Differential
'13 Infiniti G37 Convertible- Graphite Shadow/Graphite/Premium
Gone but not forgotten:
'13 Lexus GS F Sport- Liquid Platinum/Cabernet/ML/HUD/DRS

But my favorite post is...
Quote
My 2-year lease ended and I gave in my 2013 RX for the NX.

A car purchase is an expense, not an investment, and for some getting into a new car every couple years (like me) is part of their lifestyle much like for others money is spent on smoking, drinking, and often eating out (not me). At the end of the day, you don't need to be super well off to own a Lexus nowadays if you save up for one.

He is talking about SAVING money... to LEASE a car.  WTF??????
LOL yup... that guy is a nut.  He ties his personal worth to the amount of money he wastes on his cars habit.

Valhalla

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And if we are talking "absurd dealership charges" for "luxury" cars then I have a lovely story for you:

I bought a second-hand car from a Mercedes dealership.
It still had nearly a year's warantee still left to run.
So I took it back in to the same dealership for its (last) dealer-service for requisite stamp in service history.

When the "service manager" brough the invoice to me he looked at it and said "that cannot be right"
and took it away again before I had even seen the total amount.

He came back saying that the (low) amount was correct because the parts costs and labour cost hourly rate for servicing Smart cars was half what it was to service Mercedes cars.

Same mechanics, same service bays, same tools, just 1/2 of the price.

Needless to say, I never went back there and I will not be buying a Mercedes.
Exactly.  But you have guys like "clean shaven" who says ridiculous high luxury dealer fees are "wrong"... we have such nuts on our own forum too.