Are Lexus' F Cars Bucking the Depreciation Trend?

[Gecko]

For years, many of us have seen and read the stories about exotics and performance vehicles suffering some of the worst depreciation in the automotive landscape. Mercedes' AMG products and BMW's M models have been no exception, losing even more of their value than the more humble cars they're based upon.

As most of us do, I've been daydreaming of a second car and that has led me to look at a slew of different options, two of which have been the IS F and RC F. Over the last few weeks, I've been looking around on Autotrader and am finding the following:

2011-2013 IS Fs with 70-100k going for $39-45k

2016 RC Fs with 15-20k going for $55-65k

I researched values for some other comparable models: C63s, M3s, M4s, and when optioned similarly, it seems to me that Lexus F vehicles are actually bucking the depreciation trend for performance cars and holding their value like normal Lexus cars.

Has anyone else noticed this?

 

[mikeavelli]

For years, many of us have seen and read the stories about exotics and performance vehicles suffering some of the worst depreciation in the automotive landscape. Mercedes' AMG products and BMW's M models have been no exception, losing even more of their value than the more humble cars they're based upon.

As most of us do, I've been daydreaming of a second car and that has led me to look at a slew of different options, two of which have been the IS F and RC F. Over the last few weeks, I've been looking around on Autotrader and am finding the following:

2011-2013 IS Fs with 70-100k going for $39-45k

2016 RC Fs with 15-20k going for $55-65k

I researched values for some other comparable models: C63s, M3s, M4s, and when optioned similarly, it seems to me that Lexus F vehicles are actually bucking the depreciation trend for performance cars and holding their value like normal Lexus cars.

Has anyone else noticed this?

The IS F has held its value as good as anything you can ask for. One in good condition with low miles is easily a 40k car. There is a huge demand for it on the used end and people love the car.

The RC F seems to be discounted quite a bit new but used that hasn't translated to lower prices. Thus it drives people to buy a new one since the price is maybe good enough to manage.

 

[Tragic Bronson]

IDK, I read this so YMMV, but this is a 2008 model, so older ones are probably a lot less desirable so the price is much less:

http://jalopnik.com/here-is-how-much-it-costs-me-to-buy-own-and-sell-cars-1788562084

Car No. 2: A 2008 Lexus IS-F

I paid $28,000 (plus ~$1,800 in taxes and fees) for the car and knew right away that I overpaid. I was in a bit of a desperate situation, since I didn’t have another car to drive after I sold the 335i and needed something quick. And we all know how desperation always leads to bad decisions like the time when you bought her a diamond ring when you knew you shouldn’t have. Oops!

I figured it would be an interesting choice, with its 416 HP from a robust 5.0-liter V8. I wasn’t planning on getting an IS-F, but it just so happened that I saw it pop up on Craigslist right when I needed a car and it was located a few minutes away from where I live. I test drove it, loved the power and the quick shifts and so I bought it.

But when I sold the IS-F eight months later, I only managed to get $25,750. The market for the car just wasn’t as hot as I thought it would be and discovered that the only interested buyers were diehard Lexus fans or folks whose parents loved their Lexuses. I thought I was driving around something highly exciting and desirable, but I was wrong—most enthusiasts don’t really care about a Lexus even if it generates that much power.

Additionally, I had to pay for a couple of repairs on a car with no warranty during my time of ownership which came out to about $1,200. Now add that to my buying price of $29,800 and you get $31,000. Since I sold the car for $25,750 after eight months of ownership, I ended up losing $5,250 over that period, meaning that my “monthly payment” ended up being $656.25 to own the Lexus—much more than I was expecting.

Also, because the car needed new brakes and tires, I had to sell the car for a lower price than I wanted to which made my “payments” higher. Anyway, I learned three important lessons here: a) warranty is a must b) new or almost-new brakes and tires are a must and c) no one cares about a fast Toyota unless it’s a Supra.

 

[mikeavelli]

IDK, I read this so YMMV, but this is a 2008 model, so older ones are probably a lot less desirable so the price is much less:

http://jalopnik.com/here-is-how-much-it-costs-me-to-buy-own-and-sell-cars-1788562084

Its Jalopnik tho lol.... He took HIS example and tried to present it for ALL examples. That is not the case. IS F values are very strong. Try Autotrader or Cars.com....

 

[Tragic Bronson]

Its Jalopnik tho lol.... He took HIS example and tried to present it for ALL examples. That is not the case. IS F values are very strong. Try Autotrader or Cars.com....

Eh the guy has his own website that's just picked up in Kinja. But yeah, the dude seems more like a Euro fanboy to me (went to a E39 M5). If anything, the depreciation might have tapered off. And it also depends on the audience as well. If you sell an IS F in California, the market is stronger here than say Iowa or Kansas LOL.

For MY08, it seems that Lexus produced a lot of 9550s (the model #), but in the later years (2011-4), dealers were getting less of them (becoming more exclusive) and obviously, didn't have to discount them as much it seems. I remember reading about many good deals on 08s towards the end of the year...perhaps the same type of production is happening with the GSFs as well?

 

[mikeavelli]

Eh the guy has his own website that's just picked up in Kinja. But yeah, the dude seems more like a Euro fanboy to me (went to a E39 M5). If anything, the depreciation might have tapered off. And it also depends on the audience as well. If you sell an IS F in California, the market is stronger here than say Iowa or Kansas LOL.

For MY08, it seems that Lexus produced a lot of 9550s (the model #), but in the later years (2011-4), dealers were getting less of them (becoming more exclusive) and obviously, didn't have to discount them as much it seems. I remember reading about many good deals on 08s towards the end of the year...perhaps the same type of production is happening with the GSFs as well?

I continue to look and a highly desirable one is a 40k plus car, which really goes completely against what he is saying. With no current generation IS F in sight I expect the values to get even stronger.

 

[Tragic Bronson]

I continue to look and a highly desirable one is a 40k plus car, which really goes completely against what he is saying. With no current generation IS F in sight I expect the values to get even stronger.

Probably the market is changing...of course, latter model year ISFs improved year over year since 08, so those have held steady, while the early 08-09s, should stabilize. With anything, values can change anytime depending on supply and demand, and since many are discovering the ISF, and 25K might be the bottom at this point. Anyone buying a used one NOW is likely going to hold on to it like the NSX and S2000, which have gone up in price.

I see quite a few ISF owners now, some original or second hand owners, vloggin' on YT, so I wonder now with social media, many non-Toyota enthusiasts are discovering them...

 

[meth.ix]

The IS F is really inexpensive compared to the original prices they were sold for, I really would love for it to be my first car, even though I could be able to barely afford it. The problem is, with a 5.0L V8, I can't exactly be paying so much for gas after maxing out my budget by buying the car. Also, the fact that it only has two rear seats is a real turn-off when looking for a sedan.

So I'm planning on purchasing on purchasing a used 2GS or 1IS around a year after I get my license, and doing a couple mods to it as well, not trying to increase insurance costs

 

[mmcartalk]

One way, of course, that you can tell how vehicles are doing (or are expected to do) on the depreciation front is what lease-rates for them are, which, of course, are based on projected residual values.

 

[mikeavelli]

^ Leasing any F/AMG/M etc car is usually not attractive. They rarely get factory support for good deals.

 

[Tragic Bronson]

^ Leasing any F/AMG/M etc car is usually not attractive. They rarely get factory support for good deals.

It seems that they are getting a lot nowadays...most people are pulling the trigger when they're getting $10-15K off.

 

[Tragic Bronson]

One way, of course, that you can tell how vehicles are doing (or are expected to do) on the depreciation front is what lease-rates for them are, which, of course, are based on projected residual values.

Most folks leasing these things could care less about the residuals once the lease is done, and of course, you buy one to drive it, not to hold on to. These leases are subsidized so the leasee has little risk.

 

[mikeavelli]

It seems that they are getting a lot nowadays...most people are pulling the trigger when they're getting $10-15K off.

You still cannot lease most of these cars for under $1000 a month. A M2 currently leases more than the M3/M4. I looked at a CLS 63 S (15k off) and C 63 S and they are both around $1300 with the best deal. So even with more money off, the lease deal still sucks because it rarely has factory backed support and 100k is still 100k lol.