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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: gb8895 on September 23, 2016, 10:54:56 PM

Title: Sell my Lexus IS 250?
Post by: gb8895 on September 23, 2016, 10:54:56 PM
Hi All,


I bought my Lexus (on loan) pre Mr. MM, and have since paid it off in full.  Right now my wife and I own a 2008 Lexus IS 250 which is paid in full, gets 22-25 mpg on average, blue book value of around 8k, and we also own a 2013 Prius paid in full (which we will keep).  We have one child and soon to have a second.  I really enjoy the Lexus, but was wondering if it makes sense to get rid of it.  I am of the philosophy to buy a car that is nice, reliable, take care of it, and hold it till it dies.  Which in the fair weather of California Bay Area can be quite long.   Since I put very few weekly miles on the Lexus for my very short bits of commuting, and it is a reliable car which I've owned and maintained since it was 3 years old, should I go through the hassle and unknowns of selling it and hunting for a more MM worthy used car? 

I know there are some cost benefits to be made on a decreased insurance payments, and a few thousand dollars back in my investment account, but is it really worth it? 

Any advice is appreciated! 
My first post on this forum, many thanks in advance!

Title: Re: Sell my Lexus IS 250?
Post by: obstinate on September 24, 2016, 12:32:44 AM
Do it (http://forum.mrmoneymustache.com/ask-a-mustachian/worth-it-to-sell-car-and-buy-a-cheaper-one/msg269453/#msg269453).
Title: Re: Sell my Lexus IS 250?
Post by: pbkmaine on September 24, 2016, 03:52:31 AM
If it holds two carseats, I would keep it.
Title: Re: Sell my Lexus IS 250?
Post by: SeaEhm on September 24, 2016, 09:16:07 AM
If it holds two carseats, I would keep it.

From what I have gathered, the Lexus brand is quite reliable.  Keep it and drive it for years to come.

Personally, I would rather have a car that I have owned for multiple years rather than to take a risk to save $3-4k by downsizing. 

Also, dealing with cars some people believe that cars are purely to take you from point A to point B.  I personally like how they make me feel as I go from point A to point B and often I stop at point C on the way to B.

Some people here will tell you to ride your bike on those short commutes or carpool when the weather isn't fair. This would leave you with one car.  Is your wife working as well? 

Title: Re: Sell my Lexus IS 250?
Post by: Thinkum on September 24, 2016, 10:43:04 AM
Where is the happiness in the equation? Does the Lexus give you any happiness? If it's just an appliance, then sell it and get something cheaper. I like buying for longevity and Toyota/Lexus are good bets if taken care of. Used cars can be a bad purchase, but if you do your homework, you can really find some good deals. If you don't like buying/selling and/or like the IS, then keep it and take care of it. The car can last you for decades.
Title: Re: Sell my Lexus IS 250?
Post by: Clean Shaven on September 24, 2016, 11:28:41 AM

From what I have gathered, the Lexus brand is quite reliable.  Keep it and drive it for years to come.

Personally, I would rather have a car that I have owned for multiple years rather than to take a risk to save $3-4k by downsizing. 

X2 on all of this.  If the size of that car fits your needs (i.e. if you would just replace it with a Corolla or similar size small 4-door sedan), and if you would only get $8K for it, keep it.  In other words, what are you really getting if you sell it for $8K and buy XYZ used sedan for $5K?  Yes, $3K in your pocket, but unknown history of maintenance & repairs.
Title: Re: Sell my Lexus IS 250?
Post by: SnackDog on September 24, 2016, 12:17:22 PM
I would definitely try to get down to one or fewer cars. Imagine each car is idle 80-90% of the day. It is crazy to have two. Bay Area has infinite possibilities for alternate commuting, if you try hard enough.
Title: Re: Sell my Lexus IS 250?
Post by: LouLou on September 24, 2016, 01:35:24 PM
I say get rid of it if you can go down to one car as a family. You would have proceeds from the sale, plus the savings from insurance, tags, etc.

If two cars makes the most sense for your family, then keep it.  You can keep a well maintained Lexus for 15+ years.  If you had one car and wrote this post looking for ideas for a second car, I would probably think a $8000 budget was reasonable.
Title: Re: Sell my Lexus IS 250?
Post by: JLee on September 24, 2016, 03:32:40 PM
If the plan is to get another car to replace it, I would keep it.

If the plan is to downsize to one car, that would definitely save money.
Title: Re: Sell my Lexus IS 250?
Post by: ender on September 24, 2016, 03:35:32 PM
Keep in mind there are transaction costs associated with buying a different vehicle.

Title: Re: Sell my Lexus IS 250?
Post by: gb8895 on September 24, 2016, 04:10:39 PM
Thanks for all the input. 

We had no plans to replace the car, but I've been toying with this decision for awhile.  I love the Lexus comfort and performance so no - it's not a completely utilitarian decision for me.  We are both working full time and with the young kids will need the two cars for now.   I think as the kids get older and can bike to/from school as opposed to needing daycare delivery we could get down to one.  I can bike to work and do sometimes -though I'm on my feet for 12 hour shifts when I do work - so no need for extra exercise.  The Lexus will be able to fit both carseats without issue.
Title: Re: Sell my Lexus IS 250?
Post by: alsoknownasDean on September 24, 2016, 11:02:24 PM
Unless you do lots of miles in it, just keep it.

Yes, it's thirsty, but it meets your needs, should last a while longer, and you wouldn't gain an awful lot by changing.

If you've already optimized a lot of driving out of your life, that's a good start :)
Title: Re: Sell my Lexus IS 250?
Post by: obstinate on September 25, 2016, 12:33:08 AM
If you don't do a lot of miles in it, you also don't lose much in the way of creature comforts by selling it. That argument cuts both ways. If it takes you ten hours to sell and replace it -- a pretty generous time allowance -- and you realize a gain of $2,000 by doing so, that's $200/hr, post-tax. I don't know about you, but that's a good hourly rate for me, and I make a fuck-lot of money.
Title: Re: Sell my Lexus IS 250?
Post by: JLee on September 25, 2016, 01:02:54 PM
If you don't do a lot of miles in it, you also don't lose much in the way of creature comforts by selling it. That argument cuts both ways. If it takes you ten hours to sell and replace it -- a pretty generous time allowance -- and you realize a gain of $2,000 by doing so, that's $200/hr, post-tax. I don't know about you, but that's a good hourly rate for me, and I make a fuck-lot of money.

I'm not sure you're going to find anything as reliable as a 2008 Lexus for ~$5k (factoring in immediate maintenance requirements for a $5k car and transaction costs), and buying something else runs the chance of inheriting previous owner problems.  There's something to be said for owning the same vehicle for a long time, knowing the history, etc.
Title: Re: Sell my Lexus IS 250?
Post by: Tjat on September 25, 2016, 02:07:57 PM
based on what you described, I say keep it