Pricing of 07's and historical question

[Frills]

I'm interested in buying a new Lotus, I'd like to get a 2007 Exige S, but justifying the price difference to the misses is a bit difficult.

I was wondering when we might start seeing the Exiges come down a bit due to the 2008's. Anyone happen to remember about what time the 06's started comming down due to the 2007's?

Thanks for all help, unless it is to merely state that the pricing will become more reasonable once I grow a pair, but I'm looking for additional knowledge which I haven't previously aquired.

[Chili Red]

Actually the prices may hold well on the 07 Exige S as the newer 220hp exiges built after December will not have intercoolers. This may make the 07/early 08 cars more desirable to some people.

[Stephen]

Originally Posted by Chili Red

Actually the prices may hold well on the 07 Exige S as the newer 220hp exiges built after December will not have intercoolers. This may make the 07/early 08 cars more desirable to some people.

I agree with this, I had the same thoughts.

But for your question Frills, the used '07 Exige S prices have already come down. I do believe that they will stablize now and probably go up a bit in the spring due to the reason stated by Chili Red and because spring is more of the car buying season. Right now a lot of Lotus Elise/Exige owners are putting their cars away for the winter and people are getting rid for spending a lot of money in December for other things.

Even the upgrades on the '08 240 Exige S are not really worth mentioning for the average driver (track or street). Since the 220 IC cars are underated, the difference in HP may be as little as 10. The brakes on the current Exige are just fine, and only a real pro will get much benefit out of the upgraded Big Brakes. Then you have some changes to the exterior such as the Cup car roof (yuck IMHO), and painted wing supports. The interior is the biggest reason to get the '08 if you think the current interiors look cheap and it bothers you (then you might also not get the point of these cars and may want to visit the Porsche dealership). It will have richer materials and some more leather (also a little more weight). Finally, the launch control is mostly a gimmick and Lotus recommends against using it, but if you must, only rarely and for track events. The variable TC I think is cool and I would like to have that. Buuuuuuuuuuuuuut, again I think this is an item for those who really have the skill to make use of such a device effectively.

If you go for an '08 240 right now, and you don't have any history with your local dealer, and you are not good at haggling; then you will probably end up paying sticker for the new 240 S. With a few options this can easily come in at $70 to $75K! Yikes, that is a lot of money Exigent, I remember when they were supposed to come in at under $40K easy for the very first Elise, and in 3 short years the price has doubled for the top of the line model. Your point from another thread has finally sunk in; I hear ya brother. Anyway, sorry Frills; I just got off topic, ignore those last two sentences.

You can get a nice used '07 Exige S for about $50K depending on options, mileage, color, and disparity of the seller. That is a huge savings for essentially the same car but without a big brake kit ($1,800), and an ECU reflash ($2,000). Sure, you don't get the roof that most people seem to prefer (not sure why, but to each their own) or the tempting launch control which might just launch you right out of your warranty and the TC with 30 settings (Yikes), but you get everything else. And the reflash is good for about 265 HP and is fully reversible. In fact, I just thought of something. If the '08 240 S has the same ECU as the '07, then the Sector 111 reflash should yield exactly the same end HP results (assuming all else is equal, exhaust, headers, intake, machining tolerances for the motor parts) for either car, approx 265 crank hp. The same would be true for the Forcedfed pully swap, injector upgrade and stand-alone ECU package; this is the real animal power upgrade for this car.

I think now is the time for you to find a good used '07 Exige S. I believe that they are about as low as they will go because the '08's are out and X-mas is aroung the corner. They should start coming back slowly from Feb/Mar through the summer (June/July) of next year, but nothing drastic, in fact they might just hold their value at where they are now because they do depreciate because they are a year older than the '08 and they are putting on mileage as they get more use, but gain some momentum because the '08 220 does not have the IC; maybe these two influences just cancel each other out.

What will really decide the future values of these cars is what Lotus throws at us in '09. Then they will begin to decrease in value again at the usual realistic Lotus rate and it will hit both '07's and '08's.

Finally, what also makes me think that our '07's with the IC will have an advantage over the non IC '08's is the Club Racer model. Notice that it has the upgraded brakes and probably the TC and Launch Control. But it has the 220 hp motor with an IC! Are they telling us something? Hey, for you enthusiasts out there, 220 HP is plenty (besides, it is more than 220 HP wink wink) and you really want the IC for track duty! The less strained engine with the extra cooling is really the safest combo and has plenty of punch. And of course we gave you the upgraded brakes because they do weigh a litle bit less and do have more fade resitence for the track. As for the Cup roof, we are trying to keep the weight down and we did not want to ugly up this limited run work of art.

[94FD3S]

Excellent post Stephen. I've been lurking here quite a bit for the past month due to the fact I've been somewhat immobilized with 2 fractured ribs from a motorcycle accident. I'm interested in the Exige S and have been trying to decide on what would be the(how should I say?) better buy. Alot of the things you have mentioned have reinforced my thoughts on going for the 07. I too prefer the look of the 07's roof towards the 08's. I'm curious if insurance would be any, or at all, cheaper on a 07 vs. 08?

[Frills]

This brought up another issue, the dealer has one in stock locally, almost exactly what I'm wanting, but it has the track pack on it, which I don't think I'll use/need.

Can the dealers get vehicles from other dealers, or should I just contact another dealer and pay some shipping?

[darkSol]

Originally Posted by Stephen

If you go for an '08 240 right now, and you don't have any history with your local dealer, and you are not good at haggling; then you will probably end up paying sticker for the new 240 S. With a few options this can easily come in at $70 to $75K! Yikes, that is a lot of money Exigent, I remember when they were supposed to come in at under $40K easy for the very first Elise, and in 3 short years the price has doubled for the top of the line model. Your point from another thread has finally sunk in; I hear ya brother.

Remember Stephen that the US Dollar -> UK Pound rate has dropped substantially since then:

Lotus announced initial "under $40k pricing ($39985)" way back in 2003 where the average exchange was 1.6314 (using months below).

01/01/2003 1.6114
02/01/2003 1.6473
03/01/2003 1.5740
04/01/2003 1.5837
05/01/2003 1.5985
06/01/2003 1.6360
07/01/2003 1.6555
08/01/2003 1.6111
09/01/2003 1.5785
10/01/2003 1.6644
11/01/2003 1.6948 <- first road & track preview article $39985
12/01/2003 1.7213

01/01/2004 1.7859
02/01/2004 1.8168
03/01/2004 1.8687
04/01/2004 1.8435
05/01/2004 1.7786
06/01/2004 1.8315 <- first price increase to $40990
07/01/2004 1.8195
08/01/2004 1.8203
09/01/2004 1.8024
10/01/2004 1.8123
11/01/2004 1.8390
12/01/2004 1.9114

01/01/2005 1.9187 <- second price increase to $42990
02/01/2005 1.8834
03/01/2005 1.9223
04/01/2005 1.8899
05/01/2005 1.9088
06/01/2005 1.8173
07/01/2005 1.7920
08/01/2005 1.7575
09/01/2005 1.8031
10/01/2005 1.7641
11/01/2005 1.7740
12/01/2005 1.7248

01/01/2006 1.7238
02/01/2006 1.7720
03/01/2006 1.7443
04/01/2006 1.7416
05/01/2006 1.8262
06/01/2006 1.8790
07/01/2006 1.8365
08/01/2006 1.8652
09/01/2006 1.9052
10/01/2006 1.8729
11/01/2006 1.9017
12/01/2006 1.9541

01/01/2007 1.9591
02/01/2007 1.9595
03/01/2007 1.9609
04/01/2007 1.9685
05/01/2007 1.9961
06/01/2007 1.9770
07/01/2007 2.0092
08/01/2007 2.0312
09/01/2007 2.0161
10/01/2007 2.0477
11/01/2007 2.0719

Now the average exchange rate (for the first 11 months of 2007 to date) is 1.9997.

If you take the initial announced $39985 price and adjust for 2007 (1.9997 / 1.6314) * $39985 you get $49013... almost spot on.

It's the currency talking.

[Stephen]

Originally Posted by darkSol

Remember Stephen that the US Dollar -> UK Pound rate has dropped substantially since then:

Lotus announced initial "under $40k pricing ($39985)" way back in 2003 where the average exchange was 1.6314 (using months below).

01/01/2003 1.6114
02/01/2003 1.6473
03/01/2003 1.5740
04/01/2003 1.5837
05/01/2003 1.5985
06/01/2003 1.6360
07/01/2003 1.6555
08/01/2003 1.6111
09/01/2003 1.5785
10/01/2003 1.6644
11/01/2003 1.6948 <- first road & track preview article $39985
12/01/2003 1.7213

01/01/2004 1.7859
02/01/2004 1.8168
03/01/2004 1.8687
04/01/2004 1.8435
05/01/2004 1.7786
06/01/2004 1.8315 <- first price increase to $40990
07/01/2004 1.8195
08/01/2004 1.8203
09/01/2004 1.8024
10/01/2004 1.8123
11/01/2004 1.8390
12/01/2004 1.9114

01/01/2005 1.9187 <- second price increase to $42990
02/01/2005 1.8834
03/01/2005 1.9223
04/01/2005 1.8899
05/01/2005 1.9088
06/01/2005 1.8173
07/01/2005 1.7920
08/01/2005 1.7575
09/01/2005 1.8031
10/01/2005 1.7641
11/01/2005 1.7740
12/01/2005 1.7248

01/01/2006 1.7238
02/01/2006 1.7720
03/01/2006 1.7443
04/01/2006 1.7416
05/01/2006 1.8262
06/01/2006 1.8790
07/01/2006 1.8365
08/01/2006 1.8652
09/01/2006 1.9052
10/01/2006 1.8729
11/01/2006 1.9017
12/01/2006 1.9541

01/01/2007 1.9591
02/01/2007 1.9595
03/01/2007 1.9609
04/01/2007 1.9685
05/01/2007 1.9961
06/01/2007 1.9770
07/01/2007 2.0092
08/01/2007 2.0312
09/01/2007 2.0161
10/01/2007 2.0477
11/01/2007 2.0719

Now the average exchange rate (for the first 11 months of 2007 to date) is 1.9997.

If you take the initial announced $39985 price and adjust for 2007 (1.9997 / 1.6314) * $39985 you get $49013... almost spot on.

It's the currency talking.

Agreed, and excellent post with nice detail. I will say this as my final comment. I am a new car guy all the way. I don't buy used (especially these types of cars) because I do not trust the previous owner. I am very picky about how I treat my cars. However, with the current used Exige S market being somewhere in the very low $50's (some high $40's but these seem to come with financial problems attached), and the fact that you can get an ECU dump on this car at anytime from an authorized dealer, I would go for a used '07 S before buying a new '08. I just can't justify the price difference. However, now that my Exige is about to be sold, I can easily see myself at the local dealer next year and walking in on an '08 just sitting there saying "take me home, I promise I will make it worth your while." I will then do a mental calculation of my current finances and be forced to buy it. But at that point, with the car sitting on the lot with no buyers, I will expect a huge discount without even asking. This is what I see, it is from years of experience with these cars. I really wish it were not this way, I really don't. I don't mind paying MSRP, not a problem; I also know that the dealer needs to make a profit (they are not in the charity business), but as long as these cars depreicate the way they do, then I will only pay what they are really worth. If Lotus figures out how to stabalize the resale of the brand, then you will see me paying MSRP with no problems.

But anyway you do it, and whatever price you pay, each car is worth every single dime you pay; even if you were born yesterday and bought a brand new fully loaded 240 S at $5K over MSRP. These cars are awesome! Just watch how long I keep my new 997 GT3 and get back in an Exige S; you can start your stopwatches in 2 weeks from today!

[Stephen]

Originally Posted by 94FD3S

Excellent post Stephen. I've been lurking here quite a bit for the past month due to the fact I've been somewhat immobilized with 2 fractured ribs from a motorcycle accident. I'm interested in the Exige S and have been trying to decide on what would be the(how should I say?) better buy. Alot of the things you have mentioned have reinforced my thoughts on going for the 07. I too prefer the look of the 07's roof towards the 08's. I'm curious if insurance would be any, or at all, cheaper on a 07 vs. 08?

It will be a little higher on the '08 (it is valued higher based on MSRP or what you paid), but nothing worth mentioning. Since they are the same car with about the same power and "book" price they will cost the same to insure.

[Stephen]

Originally Posted by Frills

This brought up another issue, the dealer has one in stock locally, almost exactly what I'm wanting, but it has the track pack on it, which I don't think I'll use/need.

Can the dealers get vehicles from other dealers, or should I just contact another dealer and pay some shipping?

Yup, dealers can get cars from other dealers and also do dealer trades. I would just get the one on the lot with the track pack. By the time they do a trade which costs them the shipping, or you pay shipping for another car, then you might as well buy the one on the lot and get the track pack as a bonus for about the same price. The better reason for going with another car and another dealer is if they are offering a much bigger discount on the same car or relative to MSRP; then the shipping cost will be worth it. Or you can fly out there and drive it back if you don't mind the length of the drive.

I do like to buy locally if possible to support my local economy and I do care about my relationship with my dealership. They will probably match another dealer's price anyway if they know that you know the real market value. Just get the track pack and buy locally