I picked up my 2007 Lexus IS250 in 2018 for $11,000 and have owned
it for more than 3 years (as of 2021). I kinda went into this one blind
having only experience with Toyota’s and thought a Lexus would be
similar in terms of reliability and maintenance; they are not. I
fortunately purchased an extended warranty for $2,400, which later
proved a very wise move.
For comparison a brand
new 2018 Corolla would have cost about $22,000 at the same time I
purchased the Lexus. So initially, I was ahead by $8,600 and driving a
very nice luxury car.
Specs - 2007 Lexus IS250
- Engine - 2.5L - V6 RWD
- HP - 204 @ 6.4k
- Torque - 185 @ 4.8k
- Transmission - 6 Speed
- Performance:
- 0-60: 7.4 seconds
- 1/4 Mile: 15.4 seconds @ 88 mph
- EPA MPG: 24 City / 32 Highway
- Dimensions:
- Length: 180.1 inches
- Wheelbase: 107.5 inches
- Height: 56.1 inches
- Width (w/o mirrors): 70.9 inches
I. Conclusion - TL/DR - It's Not Worth It
So
my journey comes to an end and I'm parting with the Lexus for $6,000.
This represents a loss 45% or $5,000 on the purchase price alone and
total cost of ownership I burned through $16,910 and am in the red by
about $11,000.
View it another way that's about
$262 / month for 42 months. That's about the same as a new car
payment. If I had gone the route of a brand new 2018 Corolla for
$22,000 I could have sold that for $13,000 to the dealership and be in
the red for $9,000.
Yes, either way you end up
losing money and while the Lexus had the 'prestige' of being a luxury
brand, it was a PITA some times...its lost me an additional $5,000 on
the resale and total of $11,000 for the life of the car.
II. Maintenance Hog -- $8,010 for 3 years and counting
Total
cost of all the repairs and maintenance hit $8,010 after 3 years of
ownership and can be broken down into the following categories:
- Repairs - $ 4,900 ($ 2,900 Warranty & Deductibles)
- Brakes - $ 1,100
- Tires - $ 460
- Battery - $ 150 ($ 50 deductible)
- Oil Changes - $ 1,400
I paid out of pocket $5,910 (this
includes the cost of the Warranty Plan and Deductibles). So I saved
about $2,100 thanks to the Warranty. This comes out to an average of
$1,970 per year, which is about what you can expect to pay each year.
I
anticipate reducing my maintenance cost to $1,500 for Year 4 and $500
for Year 5 as I'm budgeting for the $250 oil changes every 6 months and a
$1,000 walnut valve cleaning service. That would bring my annual
average to about $1,582, which is honestly not half bad considering 1/3
of that cost are for required oil changes.
So what broke in 3 years?
Year 1- Alternator - $1100 ($100 deductible)
- Battery - $150 ($50 deductible)
- Oil Change x2 - $450
- Year 1 Total = $1,700 ($600 actually paid)
Year 2
- Front Tires - $400
- Front TPMS sensor - $60
- Brakes & Rotors x4 - $1100
- Oil Change x2 - $475
- Year 2 Total = $2,035 paid
Year 3
- Front Bushings - $800 ($100)
- Rear Axle - $1700 ($100)
- O2 Sensor - $600 ($100)
- Valve Cover Gaskets - $700 ($100)
- Oil Change x2 - $475
- Year 3 Total = $4,275 ($875 actually paid)
Total Maintenance - $8,010
III. Was it worth it?
For
me it wasn’t worth it. I anticipated expensive repairs and paying
$1500 a year, but if I’m going to spend that kind of money I was
expecting a fun car to drive. The Lexus drove like a Corolla, which is
why I compare it with one.
IV. Sold it for $6,000
The
journey ends, at a steep loss for me. Yes, I could rationalize this
many ways, but pretty much every scenario still indicates it was a loss.
In
hindsight, what may have helped soften the blow was negotiate the
purchase price harder. I failed to do so and accepted a $1k price below
list of $12,000. I could have negotiated something closer to $9,000.
It still would be a loss due to the maintenance cost and poor resale
value, but eh...lesson learned at $11,000.
Remind myself....the privilege of owning a used Lexus for 42 months cost me $11,000.
And
true, no matter, your going to end up underwater on most car deals.
The new Corolla would be a loss of $9k not factoring in any
maintenance…it might have ended up at the same loss level if I had to do
brakes, tires and oil changes…
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