Need Advice on Selling My Problematic Lexus IS250 and Getting a Bigger Car

Hi all,

I bought a used 2007 Lexus IS250 about 2 years ago from a Sydney dealer for $11k, its had a power steering problem which appeared a few months after I bought it. The power steering would randomly fail (sometimes multiple times a day, other times it would go weeks and be fine). I have tried to get this fixed by my mechanic, an autoelectrician and a Lexus dealer. All of them tried something, but the power steering would still fail. Its a hard one to fix because it fails so intermittently and randomly. I am sick of spending money on it, plus it also now needs a belt tensioner and an alternator overrunning clutch which I have been quoted $1100 to fix.

These problems, plus the fact that our family is about to get a bit bigger, mean that I am on the hunt for a bigger, more reliable car.

My options are:

1) Trade in my Lexus (hopefully get around 7-8k for it) and get one of the following used cars from a Toyota Dealership:

• A 2017 Toyota RAV4 [85,000km] for $27000. My Mrs would probably steal this car from me and I would get her old 2008 RAV4. She loves hers. Only down side is its a bit more than I wanted to spend.
• A 2014 Mazda CX-9 [95,000km] for $25000. Seems like a good idea as we would outgrow this anytime soon.
• A 2014 Nissan X-TRAIL [70,000 km] for $21000.

There are some others I would consider like an Hyundai ix35, Kia Sorrento or Subaru Forester, but I am in a large regional town and the above cars are the only ones the local Toyota dealer had.

2) Same again, trade in my car but get a NEW car:

I had a quick look at the new MG's because they were the same price as the used cars I was looking at. They looked pretty nice and they come with the 7 year warranty. Can you really go wrong with this? The one I was most interested in was the ZS Essence - Ex demo. I didn't see the kms but they had reduced it by 2k down to $24000. I understand that everyone says they're Chinese junk but are there any actual known problems or downsides with them? Its cheaper than the RAV4, brand new, and comes with warranty. All you seem to be sacrificing is some resale value in 6-10 years time. I would rather have the warranty TBH. The other benefit is that I don't think the new car prices have been inflated due to Covid, so you don't feel like you're getting ripped off (as much).

3) Try to sell my car and worry about getting a new one when prices settle:

My father-in-law has an older Pajero that he only uses for towing his show cars around. He said I can borrow it indefinitely (providing he can swap it with his Commodore if he needs to tow something and I go halves in rego with him). This sounds like a great deal, as it would allow me to sell my car while prices are high and then wait until the market settles before getting myself a new car. The only issue is selling my Lexus. I have it listed on Carsales for $9500 as I have seen others on Carsales with similar km to mine and they are going for 11-13k. I figured with the problems this is a fair price. I have had lots of interest, about 15 enquiries in a week (95% has been from Middle Eastern gentlemen - they must like Lexus'). I am honest about the problems in both the ad and when talking to them and then I get lowballed, they offer me $4-6k.

Are there any other options other than selling privately, such as selling to a wholesaler, auction house or dealer? How do I go about this? I am in a large regional town so it wouldn't be as easy as somewhere like Sydney.

Am I being realistic about the price on the car?

I could fix the the belt tensioner and alternator problem for $1100 but I doubt I would get anywhere close to that money back in the sale. Then I have no idea who to go to with the power steering issue.

This would be my preferred route to take however the only issue is getting rid of my Lexus for a price I'm OK with.

Comments

  • If you're going to sell privately, you're going to have to bite your tongue…once it's sold the buyer can't really do much when the problem rears it's head but you may cop a bit of flak for it, depending on the buyer and when it appears.

    I'd have an issue with that personally and I'd just trade it. At least the buyer getting it then could potentially get it sorted thru the dealer thereafter.
    Whilst the MG idea is sound, I don't think they're going to hold their value. You may have 7 years trouble free but if it falls apart after that time or you just want to sell, what will it be worth? I'm sure you could justify it by having it so long. I guess have a look at Great Wall and similar as that's how I think they will fare over the longer term.

    Out of that list, I'd get the newer Rav (and I don't like Rav's). Next would be the CX9. We did have a 2014 CX9 Luxury and it was an excellent car. Absolutely nil issues in the 6-7 years we had it since new, nice to drive, plenty of room. Would highly recommend this option but I think the newer Rav will serve you better. Otherwise trade yours, sell the current Rav so the wife can upgrade and drive the FIL's car? Will soften the blow of the more expensive car and then look at getting something else for yourself down the track. I'd just want the baby in the safest car most of the time (if that makes sense).

    • Great advice thanks mate, I hadn't thought of also selling hers now but that's a great idea, best of both worlds really!

    • +4

      Shame on the two people who upvoted "lie about the problems" advice.

      • +2

        How are they upvoting only that part of my whole paragraph? Whilst I said that you would have to be dishonest if you want the best possible price, I personally couldn't do it. I imagine the couple of upvotes also agree with this - along with the OP who stated he has been honest in his approach to selling the car and keeps getting low balled because of it.

        • +1

          Don't know who neg you but +1 to neutralise it. We could guess who negged? But would be waste of our minds…

          Giving a honest personal opinion that isn't popular here, plus you aren't pushing your agenda onto others, just it wasn't for you.

          But your username, doesn't check out here :)

      • There’s telling lies about problems and omitting details unless asked.

        Tell prospective buyers about the power steering, just say it’s intermittent but OK to drive. Don’t mention the alternator or tensioner unless they make noises that make a buyer suspicious.

        Don’t lie if they ask, don’t tell if they don’t ask is the rule with private sales.

      • You don't have to lie about the problems but there is no compulsion to tell people. It's the same as selling a house, you don't have to disclose issues.

  • Pity that you've come across an unreliable IS250, i always thought these were effectively more luxurious, equally bombproof camrys.

    At risk of being the devils advocate. Don't want to go down the secondhand BMW 3 series? The F series is wayyyy more reliable than the previous E series, although unfortunately they still have to shake the crappy euro reliability image. This would be my go to if you sell/trade your lexus.

    As for SUV's the new model rav4 is a ripper of a car (as long as you get the one with roof rack attachments) although they start at $35k secondhand which is not so good.

    Could go for a Lexus RX, mate has had one for years and never missed a beat?

    • It is a pity, most of the stuff I could overlook but this power steering is a real thorn in my side. I would love the car if it weren't for that.
      I have always stayed away from BMW, Merc, Audi etc as I have had some friends with them and they are always up for a small fortune when something breaks… I might have a look though, cheers.
      I was considering an RX, I think due to Covid tax they are a little out of my price range for now and there arent many around my area.
      Thanks for your help mate.

  • +3

    So wait, you're trying to sell it for $9500, and you think a dealer will give you $7-8k? Fat chance. For one thing, if you haven't sold your car in a short space of time in the current market, it's obvious it's not worth what you're asking. Sounds more like the car should be selling privately for $7-8k, with a dealer giving you $2-3k trade value (that is, unless the power steering scares them off putting any dollar figure on it).

    Oh, and don't buy an MG

    • +3

      MG is china rubbish w/ no resale.

      I would go the cheapest most reliable route and trade in the Lexus for the Xtrail. They arent good driving SUVs IMO but they are deadly reliable and cheapest to run insure service you name it.

      Get the cvt serviced every 60,000-70,000 and the damn thing will last decades.

    • Similar cars to mine on Carsales have been going for around 12k.
      I have been fully transparent about the issues while I'm selling it privately. I think the power steering issue has scared most away as I have no idea how to fix it and therefore they don't have a dollar figure to fix it after they buy. I would easily get $9500 if I kept my mouth shut about the problems but I'm not an a***hole.
      I wouldn't tell the dealer about the power steering issue, as I'm sure they would just use the info to give me a crap deal, and wouldn't pass the info on to the wholesaler or next buyer. You're right, 7-8k is probably a bit high, probably around 6k. I don't think it would be 2-3k.

      • +5

        "going" for $12k or listed for $12k. There is usually a big divide between what people ask and what they get.

        • +2

          Im shocked so many people dont understand that.

      • How many kms on your IS250?
        I had intermittent transmission problems popping up on my 2006 IS250 Prestige with 270000km on it, decided just to trade it in without mentioning it to the dealer.
        Luckily it would only show signs of problems after driving it for about 25-30 mins and warmed up so I took it in ‘cold’ and to my surprise the dealer didn’t even bother driving it and offered $6K.

        This was back in 2016 though.

        I felt I couldn’t sell it privately without feeling obliged to tell the buyer the issues as it would play on my conscience but for some reason I didn’t feel bad not telling a dealer because they would be driving a hard bargain and probably looking to screw me on the deal too.

        • +4

          the dealer didn’t even bother driving it and offered $6K.

          Dealer hops straight on the phone to wholesaler who has a tow truck there the next day to pick it up. The dealer doesn't give a shite about your trade-in.

          • +1

            @MS Paint: ^This! Again this is the usual policy with dealers, and is likely the situation that OP's car incurred prior to his purchase.

            The former owner was likely fully aware of the issue either due to poor maintenance or just bad luck, had it traded in and then a Sydney "Wholesale" dealer (Read: Dodgy AF), sold on the car using the LEXUS reliability brand rec to the next owner (you).

            As mentioned throughout this forum (https://www.ozbargain.com.au/node/606506) and specifically what I said below;

            I never really understood why people trust (used) dealers so much. A lot of people offload problematic cars (I'm a culprit of this) as trade-ins, so that they don't need to deal with private buyers chasing them up later, Brand-Name dealerships if they notice these issues typically auction off these vehicles and places like 'Car City" buy these for their lot.
            Further, you literally have no idea of the history of the type of person who drove it before you (stamps can be forged in), and I always buy privately to gauge the personality of the seller and whether they would have taken care of the car - or tell if they're lying. Added bonus is its usually a few grand cheaper and better condition.

            you unfortunately made the mistake of buying from what I presume is a more shady dealer and are paying the price for it (Happy for you to Name & Shame). I've got nothing against you, and you at least did some DD and went for the most reliable brand out there, but on the balance of probabilities you messed up there by doing to a dealer.

            Now that you want to offload the car you should expect a significant haircut on market prices to lure someone to the car and I'd say that 6-7 would be reasonable. Maybe list it for 8 and give buyers a bit of a break when they inquire.
            Having followed is250 prices for a while I'm aware that pre-COVID the cheapest ones were selling for 7k then and they seemed to be issue free (just high kms). Given the fact that you also live regionally having a high asking price and sticking to it will be even harder as people aren't inclined to travel for non-collectible cars. I think your best option is to cut the price down a few k and try you're luck or otherwise try sell via online auction site (Grays/Pickles) and see what you can get there. Otherwise just trade-in, and take the loss on the chin.

            As a fellow Lexus owner (1998 LS400), I'd like to say that these are indeed truly reliable cars, but also have minor electrical defects as they age given the level of electrical complexity involved, which I'd expect of any car when they're 10+ yrs old, let alone 20+. Mechanically however they're bulletproof, however is250 have had transmission issues at end-of-life kms given the use of "Life-Long" transmission fluid.

      • Similar cars to mine on Carsales have been going for around 12k.

        Try again… Look objectively at the market, as if you were a prospective buyer

        IS250 for sale in NSW

        $13,800 finds a 2010 Prestige with 175,000kms.

        Why would people pay $11k for a 2007 model?

        I don't know why people find it difficult to truly price their car to the market

  • are you able to travel to Sydney or have family there? you would likely have more options on cars and more buyers.

  • +3

    For me personally. Trade it, then get the rav4 or get the mg, for the mg you have to commit to driving the heck out of it for the life of its warranty as its residual value will be low. The market for used cars isn't going to last, I just traded mine in to take advantage and got a new one because of this. For the euros, it's only worth it if you lease it and it's within warranty, I stay well away from them out of warranty.

  • I figured with the problems this is a fair price.
    I have it listed on Carsales for $9500

    Can you post a link to your car on car sales since its a hunk of shit so nobody buys it. I'd say with its issues and by the sound of it issues are growing by the day - 5k would be fair.

  • we still don't have proper lemon laws for new or used cars do we

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