Adding navigation de-values your new Lexus IS?

On a recent phone call to one of our Southern California dealers, I picked up some interesting information regarding ordering the navigation system on the new IS-series.

Cars that have a factory navigation system have a lease residual that is TWO POINTS LOWER than a car WITHOUT it!

When I asked the salesperson why, they said it is because three years down the road, Lexus believes the two configurations will have the IDENTICAL resale value.

So no add, for a navie car on the resale market.

We think Lexus is dead wrong here.

The Spies believe everyone looking for a used IS down the road will happily pay $500-$800 extra for a navie equipped version.

Do you agree with us?

DiamondJim - 10/19/2005 10:10:34 AM

+1 Boost

A,
that sounds so right, you seem to be dead on. of course people are gonna pay extra for nav, they can't tell east from west or north from south so gps is a great way to get to your desintation confidently.

FastXTC - 10/19/2005 11:09:40 AM

+1 Boost

IS 350 Base + Premium = $38.2K
IS 350 Base + Lux (Nav) = $44.9K

E.g. residuals
Base + Premium 62% = $23.7K
Base + Lux 60% = $26.9K

Two points lower residual on a higher MSRP is still more than higher residual on a lower MSRP.