My Experience with a 2007 Lexus IS250
I picked up my 2007 Lexus IS250 in 2018 for $11,000 and have owned it for more than three years (as of 2021). I went into this one blind, having only experience with Toyotas, 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 to be a 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 while driving a nice luxury car.
Conclusion - TL/DR - It's Not Worth It
My journey comes to an end, and I'm parting with the Lexus for $6,000. This represents a loss of 45% or $5,000 on the purchase price alone, and the total cost of ownership has burned through $16,910, leaving me in the red by about $11,000.
To view it another way, that's about $262 per month for 42 months, roughly the same as a new car payment. If I had gone with a brand new 2018 Corolla for $22,000, I could have sold that for $13,000 to the dealership and would be in the red for $9,000.
In either scenario, you end up losing money, and while the Lexus had the prestige of being a luxury brand, it was a pain at times. I lost an additional $5,000 on the resale and a total of $11,000 for the life of the car.
Maintenance Hog - $8,010 for 3 Years and Counting
The total cost of all repairs and maintenance hit $8,010 after three years of ownership, 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 (including the cost of the Warranty Plan and deductibles). 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, budgeting for $250 oil changes every six months and a $1,000 walnut valve cleaning service. That would bring my annual average to about $1,582, which is not half bad considering one-third of that cost is for required oil changes.
So, what broke in three years?
Year 1
- Alternator: $1,100 ($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: $1,100
- Oil Change x2: $475
- Year 2 Total: $2,035 paid
Year 3
- Front Bushings: $800 ($100)
- Rear Axle: $1,700 ($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
Was It Worth It?
For me, it wasn’t worth it. I anticipated expensive repairs and paying $1,500 a year, but if I’m going to spend that kind of money, I expected a fun car to drive. The Lexus drove like a Corolla, which is why I compare it with one.
Sold It for $6,000
The journey ends at a steep loss for me. 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 would have been negotiating the purchase price harder. I failed to do so and accepted a $1,000 price below the list of $12,000. I could have negotiated something closer to $9,000. It still would have been a loss due to maintenance costs and poor resale value, but lesson learned at $11,000.
Remind myself that the privilege of owning a used Lexus for 42 months cost me $11,000.
No matter what, you are going to end up underwater on most car deals. The new Corolla would be a loss of $9,000, 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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