Advice Purchasing a Used Lexus from Dealership

My partner and i are finally looking to upgrade our car and we've decided on a Lexus IS250. We found a 2007 Sports model for just under 15k, with about 76,000km. It is being sold by a local dealer, not one of the official Lexus ones. Since this is my first car, i have a few questions:

  • Although it comes with 1 year warranty, should i still get it looked at by a 3rd party mechanic? I've looked up on here and people have recommended to schedule one through MTA etc.
  • What sort of price movement can i expect from the dealer? I can pay it in full upfront.
  • What questions should i be asking them, and what should i look out for in the car of that model?

Thanks guys!

Comments

  • +14 votes

    Firstly, you're spending 15k on a car that is a decade old! Madness..!

    Anyways back on topic, you should absolutely get a checked by a third party. In regards to the 1 year warranty, what does that cover? Car dealerships only have to offer 3 months statutory warranty on used cars.

    As for price movement, I'd expect 10-15% price movement on a car of that price.

    • +8 votes

      Firstly, you're spending 15k on a car that is a decade old! Madness..!

      if anyone is going to spend $15k on a ten year old vehicle, then it may as well be lexus. it's made in japan and a toyota after all.

      https://www.carsales.com.au/dealer/details/Lexus-IS250-2007/...

      • +5 votes

        Plenty of people pay that much for a car 10 years old. Especially if it has a Lexus badge on it (uber reliable). I recon it sounds like a reasonable deal.

    • +4 votes

      I paid 15k for a 15 yo Lexus rx330. Amazing car with accessories thats most new cars dont have, heated wing mirrors anyone? Everything works perfectly. Never had a problem. It's also super quiet.

      Lexus is the most reliable car brand in the world and has been for years.

      Smart buy.

    • +1 vote

      Firstly, you're spending 15k on a car that is a decade old! Madness..!

      I got a 2005 Nissan 350z for 11k with 80,000km last month and it's awesome. Nothing wrong mechanically and no missed services, great car.

      I think it's madness paying $60k for a car that's brand new when you can expect a well maintained car to easily last over 200,000kms.

      To answer OP I would get it mechanically inspected by an independant mechanic, perhaps ask your parents / your partners parents who they trust and get them to perform the inspection. It will be under $150 and give you peace of mind.

      •  

        Thanks for the tip. I got a quote from MTA which is highly recommended but they quoted me $315. Do you suggestion for a mechanic?

  • +2 votes

    are the log books up-to-date especially the 75000km one. if not u might be able to use that to get another $400 off

  • +14 votes

    Don't rely on the warranty, when you look into the detail you will most likely find it's useless.

  • +4 votes

    You'll find the one year warranty will be very limited , like basic engine and gearbox only and to a certain dollar amount.
    Don't get hooked up by thinking it's a prestige car, remember it's 10 years old.
    Get it checked out by racq, nrma etc.
    I see it on Carsales and I think you won't get much reduction seeing all others are a similar price.
    A lot seem to be rev head cars, like older 3 series bmws as well so take care.

    Before you buy check the price of insurance, that may be a killer.

    • +2 votes

      Checking the insurance is a good idea. I found a $500 pa difference between manual and auto transmission versions of the same 4 year old, $15k car at the same address with the same driver, etc. with one insurance company.

      • +5 votes

        $15k on a Kia will get you a new car with 7 years of proper warranty, not the piece of paper being waved in front of OP's face.
        I also doubt there's many features that a 10 year old car would have that a modern one wouldn't, especially a Kia who tend to have a long feature list. Plus the Kia's features will still be functional!

        • +1 vote

          If we were talking about a Euro car, I'd reckon the features would be less reliable, but LExus should be fine. Heck, my 10yo Nissan's features are mostly running fine (the Drivers window is a bit dickie at times)

        • -2 votes

          @Euphemistic:
          Pretty much no matter the quality, I'll take the new stuff over stuff that's been baked through 10 Summers thanks.
          Doubly so for all the rubber/soft touch components.

        • +6 votes

          @scubacoles: We are all different. Give me 10yo Lexus over a new Kia any day. But then I have a saved search on carsales for cars between 1960 and 1975.

  • +2 votes

    Why dont you buy a Toyota Camry SL? 2012 model goes for roughly $15-17K. Comes with better features and you get things like blind spot monitoring, push to start, electronic rear sunshade etc

    •  

      Depends, this is a V6 running on the rear wheels. Slightly more go, at the price of age.

      • +1 vote

        Not to mention under the skin despite not being shy about it's Toyota heritage, you will find a Lexus is better put together. One thing to look on the spec sheet, another to see the differences in the flesh.

      •  

        That's a good point. You'll have a hard time finding a RWD car for that money, other than a crummydore or falcon.

    • +1 vote

      Was waiting for the camry recommendation:)

  • +1 vote

    Just seen this on Reddit too.. you might have some competition for that Lexus :-p

  • +7 votes

    Lexus = Toyota in Armani suit

    •  

      I upvoted you because it is technically true.Yet again, feel much nicer to be in Armani suit than say Oxford lol

      •  

        technically, the engine in the IS250 4GR-FSE is shared with Toyota Crown ( a more luxury oriented Toyota, which we do not get in Australia). The analogy is not quite 100%, but funny nevertheless.

        The difference between the camry (2AR-FE, 2017 model Altise) and lexus engines is the torque, you get more torque at lower revs in the Lexus so you get the feeling of effortless power.

        Lexus reliability is higher than a Toyota because Armani tailors are better than LOWES sweat shop workers.

  •  

    Apologies for hijacking the thread but anyone has any thoughts on this.

    I only asked once and the dealer dropped to 32k, 1 year rego.

    https://www.carsales.com.au/dealer/details/Lexus-IS250-2013/...

    • +2 votes

      Buy a Camry with leather seats

      • +2 votes

        its all about vanity, I don't like the camry's look.

        Have driven my dad's corolla for so long.

        •  

          have you driven a lexus?

        • -1 vote

          @tuzii:

          I have, it feels the same (I have done Camry, Aurion as well, Aurion is quite borinly powerful I guess), my friend got a 2009 lexus. I know. Again vanity and I am not ashamed to say that haha. I just really like IS250 look for some reason.

        • -1 vote

          @dennis3107: So you care about what people think? When people see people driving a Lexus, they see a person who bought a luxury car designed for people who know nothing about cars. Lexus have reliability, but that's it. They are inferior to the competition in every segment.

        •  

          @Burnertoasty:

          Not as much as I may have put it. I like a nice looking car, and it doesn't hurt that people also like that I have a nice looking car. But again, I could go for a BMW 3 class, but I just like the look of a lexus better. I do like BMW look too, not so much Audi.

        •  

          @dennis3107:
          do this for me
          go drive a VW, a BMW and a Merc, all 3 will drive better than a glorified toyota.

          Have driven my dad's corolla for so long.
          I have, it feels the same

          WHY DO YOU WANT A CAR THAT DRIVES THE SAME?

        •  

          @tuzii:

          I guess that is because of the old shtick that lexus has lower maintenance costs.

          I can't afford a newer bmw, and at this age (4 to 5 years) bmw might be prone to more services and fixing??

        •  

          @dennis3107: 3 Series. You just proved my point.

        •  

          @dennis3107: No doubt. You can't afford a Lexus either. Don't buy a car that you can't afford new, because the maintenance bills don't decrease with age.

        •  

          @Burnertoasty:

          Don't buy a car that you can't afford new, because the maintenance bills don't decrease with age.

          that is silly. how many p plater do you know that can afford a brand new toyota? or how about the minimum wage working class family wanting something a bit bigger or a second vehicle to drive their children to school?

          we would like nothing more than to purchase a brand new lc/prado/kluger as a second vehicle for business use with cash, but that option isn't available to us at the moment. a second hand cash purchase have to do for now.

        • +2 votes

          @whooah1979: ok. Good luck with the $7000 gearbox replacement two years down the track.

        • +2 votes

          @Burnertoasty:

          ok. Good luck with the $7000 gearbox replacement two years down the track.

          On a Toyota? Unlikely.

          Our current Toyota do about 500k per week. The only thing that's acting up from time to time is the turbo.

        •  

          @whooah1979: Lexus are reliable, no doubt, but they are also expensive cars, and when something does go wrong, as it does with every kind of machine, it will be costly. You aren't buying a new car, you are buying a very old one. It will break.

        •  

          @whooah1979: errr, 15k kia cerato with more than 5 years warranty left? Its not even the rio. Car yard sharks would sell it to anybody on a pay day loan.

          Probably wrong to say "brand new", it would be better to say "near new" and at this price point, assuming you throw the car away after the warranty expires, you're looking at 4k a year for a safe, not-ugly, not-tiny, drives-decently vehicle.

      •  

        Clearly you have never driven a Lexus.

        • -1 vote

          clearly ive driven many toyotas

  • +2 votes

    The 1 year warranty is probably so severly limited i would not consider it a warranty at all. Being at possibly the 10 year mark it may also have no 4 month statutory warranty.

    I would say that you should go in there and say , look I have $11k, and am looking to buy today and see what they say…hopefully they go back and can meet you at 12.5k.

  • +1 vote

    Buy a camry.

  • +7 votes

    We traded in our Lexus with Log books. We weren't the original owners.
    They put it back on the lot as a one owner car for double the trade in price.
    So be wary of the stories that they tell you.
    Some IS250's had oil consumption issues so have it checked out by someone qualified.
    I don't think that the warranty would cover this type of issue
    The forums are also helpful

  •  

    First things first - get a detailed look at the car through a mechanic. Get him to go for a drive in it and let him report back. If the car looks good to you, start the bidding process.

    Carsales is a good way to sense check the price itself. I've found most dealers won't move too much on price - but you have cash - say that this is the final price I'm looking at and say you can settle within a day. Dealer will come back with another figure - you can renegotiate - but if the car checks out, you would be paying a premium for the fact that it is 76k only on the odometer. Cars in the same price point are listing about 100k or more on the odometer.

    Also, trust your gut instinct - if it feels like a good deal - run with it. If something doesn't click - then move on and consider newer options (Toyotas, etc.).

  • +3 votes

    I think it's a really nice car. 6 Cyl, 2.5. It will consume a bit more fuel than most modern cars and if you're in qld your rego will cost more (something to be aware of).

    Ignore people who tell you to buy camry's/say it's a toyota etc. At the end of the day it's a completely different platform, I'm not sure of any rear wheel drive toyota camry's. I remember I had a 1998 Audi A3 around 2009. It still drove amazingly, and much nicer than most modern corolla's at that time, it just felt like a nicer place to be in, once you're in the car. Interior just feels that little bit nicer.

    As much as people will go on about vanity - so what. It's nice to occasionally have nice things for the sake of the brand/image. To me what a car looks like plays a huge role, as I like to wash my car a lot and look at it (lol, sad I know) - so buy something that you like. There is nothing wrong with that.

    It's 10 years old - so few key things to look out for:

    -Leather condition (if it's hard - it's not ideal, you'll need to spend money on getting that fixed)
    -You probably won't have Bluetooth? maybe you will - but just look into it. It's become a basic requirement these days.
    -Get a general independant inspection done at any mechanic that you go to. They'll tell you how the brakes/tyres/oil leaks/hoses condition, wiper blades etc. They'll look over it properly and give you a report for about $150. I know in QLD everyone seems to to go RACQ and pays $250-300 for one of these inspections, but your local mechanic can probably do it for $99.

    Other point I'd like to make is that $15k is pretty well priced. You can probably drive it 130,000 km's and get the next 3 years out of it and stil sell it for around $12k. So $1k per year depreciation is really not that bad.

    Good luck mate! I hope you buy it and don't cave into the camry's and corolla's/modern i30's/cerato's.

  •  

    I know you're interested in the Lexus, but have you considered a Toyota Camry instead?

  •  

    Get another 5k and buy a brand new japanese economic car.

  • +1 vote

    Buy a 15k Kia cerato, or a 17-18k Kia optima. >5 years of warranty left and pretty nice cars.

    If you still want to buy that car though, a couple of things to consider to get the dealer to move on the price

    1) Similar cars listed (condition and trip makes a big difference).
    2) Demand/interest in the car.

    Chances are the car is probably the cheapest for its condition or the only one of its condition at its price which is why you short-listed the car in the first place. Dealers know that, they have access to the same (or even more) information than you.

    How old is the ad? How many people have seen or want to see the car? If its a good deal, you won't be the only person to know that, others have access to the same (or even more) information than you.

    I don't know about this car but, if its the cheapest example for its condition, the ad is rather new and there is demand for the car, probably won't have much room to move on the price. They might round the price off for you to the nears '000 or 500. Depends on how desperate you or the dealer might be.

    If you're not ready to walk if the discount is not what you desire, or if you're set on the car but just "trying to see if you can get the dealer to give you a bit of a discount" then you have already lost the bargain and be prepared to just pay the full price.

    The only way you can "beat the market" sometimes is to do thorough research about the car, go with unpopular cars and/or go with cars that have saturated the market (e.g ex fleet camries), while it will be hard to bargain on the listed price, the act of listing the car among many others would have brought the price down for you from the back end (from the point where the fleet buyer argues for a fleet discount, but you wouldn't perceive very much).

    •  

      My advice would be to drive many other cars in the same price range. How much "car" are you really getting for $15K?

  •  

    If the service history is patchy on this age of car, chances are this is a trade-in from a dealer, which has then been onsold through Pickles auctions.

    $12480 cash with a full tank of Petrol included seems like a fair price.

  •  

    Just so you know, there is a difference between the sports and sports luxury models. It's a pain to find a sport luxury model since the prestige model is so common but its worth it.

  • +2 votes

    I will never understand people asking for advice on luxury cars in a forum crawling with tightwads. Seems like a good way to start a flame war.

    Google, Carsales, brand-specific forums and a little common sense will tell you if the deal is good, what a dealer warranty is really worth and whether or not you should have it inspected before buying :)

    • +4 votes

      "crawling with tightwads" LOL

      • +1 vote

        More like bursting at the seams with Camry & Kia drivers (not a knock on the cars, but they are tight arse bait!)

  • -3 votes

    stay away from lexus, especially a second hand without warranty

  •  

    forget the new car smell and the new obsessed consumerists. I think its a smart buy…you're cutting costs…forget the extended warranty just get it checked out comprehensively… should get 320 000 km + out of it.

  •  

    The Checkout did a good bit on buying cars
    https://youtu.be/uNyGUqrKBjQ

  • -1 vote

    You should talk to your partner and reconsider purchasing a $15K lexus perhaps going for a $80K Lexus not only is it a high yield investment think about how many coworkers you can impress

    • +1 vote

      People are STILL going on about that guy!

      •  

        He's the new Broden. It will never die and neither should it!

  •  

    Mechanical check and PPSR

    Good luck, nothing wrong with 10yo car if looked after

  • +1 vote

    1 - Usually the 1 year warranty is only covered if you service the car with them. Although the car is more than 10 years, you can ask for a 3 months warranty as a peace of mind. they would usually do it for you.
    2 - The price will depend on how good you can negotiate, and how desperate they are to sell. assuming it is near the end of financial year… :)

    You can check this link to read more about all the different variants in the Is250. http://au.lexusownersclub.com/forums/topic/10109-2is-model-r...

    Remember when you are buying an Is 250, check what wheels they are on. Sometimes the previous owner would put on the ISF wheels. Check if it comes with SAT-NAV + Mark Levinson sound system. Assuming SAT-NAV will include reverse camera. And with the sports model, the seats are not leather. So I am guessing they are not heated?

    But regarding buying a Lexus, you can't really go wrong with it. There will always be someone out there who will tell you "it is just a more expensive version of camry". No doubt there are some similarity, even on the parts they use. But in terms of built, attention to detail, and feel, it is an obvious choice. Only through driving and owning it, will you get to appreciate how much thought has been put into building and designing it. Feel the dashboard material, feel the floor mat. Just have a look at the Is250's speedometer and compare it with an Aurion. The design looks similar but the Aurion only has a cheap plastic look on it.

    I do about 50,000km a year and so far, nothing has broken down on me. But as always, with anything in this world, there are faulty models and batches. So do check the service history, call up the mechanic and do an inspection yourself. The only downside about Lexus Is250 is the lag in power (I am comparing it with BMW 435 :P). The gearbox isn't designed as performance based as the BMW where it is more responsive, but it will survive the test of time. Having said that, there is definitely enough power to keep you happy and satisfied especially with speed limits of 110km/h (Assuming you're think of is350, that might fix the problem :P). Lexus is more about the luxury, the moment you sit on the drivers seat and it's just like sitting on the sofa. Pretty sweet I must say.

    Another thing on Lexus is the "major" service intervals are every 60,000km instead of the usual 50,000km. So if you have gotten that car, with an average of 20,000km/year, there is another 2 years before you have to do it.

    Good luck on your choice, do your own research, and ignore those who have never sat in a Lexus before.

    •  

      So if you have gotten that car, with an average of 20,000km/year, there is another 2 years before you have to do it.

      Normally when I get a "new" car, I always do a full inspection. Which sometimes means bringing major services forward.

      •  

        I guess it is always good to have a service and full inspection when you get a "new" car. But I think if you need to bring forward the major service, maybe it isn't a good buy? Or maybe that could be a point of negotiation.

        •  

          It is more for peace of mind. We don't know the previous mechanic, the type of products used, etc. Or some people think they know better than manufacturer and skipped a couple of service intervals missing the vital things.

  • +1 vote

    Remember the clear tail lights that every ricer in the late 90s early 00s had on their civic, lancer, falcodores?

    Lexus/toyota started it with their xe10 IS and altezza. You can be the original ricer with an iconic brand that was the pinnacle of every ricers dream.

    •  

      Except the model the op is talking about is nothing like that.