Help me make sense of pre-purchase inspection, negotiate repairs/discount on 2006 LX470 (please) (1 Viewer)

[soh]

Hi everyone. I am looking at a 2006 LX470 with 122k in Colorado and had the seller take it to the local Lexus dealership for a pre-purchase inspection. I live in California so I want to be really sure before I fly out there, but from what I can tell this is a pretty good vehicle at a good price (about $18k). The inspection revealed a few mechanical issues that need to be addressed as well as some minor things that don't bother me (missing ash tray, missing cupholder, etc.) The big things they identified are:

Leaking rack and pinion - recommended replacement @ $1950
Can't verify timing belt and water pump were done at 90k - $1350
Noisy front right wheel bearing - recommended replacement @ $525

They also recommended fluid replacements as coolant was overdue (part of 90k service?) and power steering and brake fluids were somewhat dirty - total about $700

I know the Lexus dealership charges a premium for these services so I'm not going to get $4500 off the asking price, but what is a reasonable expectation for the cost of getting this work done at a 3rd party shop? Would you trust a big chain Mazda dealership to do some, if any, of this work or would you only settle for a discounted price? Also, is there anything about these issues that raises red flags about the vehicle's previous maintenance and care? Replacing the rack and pinion at 122k seems kind of strange to me (I know very little) but maybe there are options for repairing or rebuilding it that the Lexus people were disinclined to discuss with me.

I'm trying to decide whether to fly out there this weekend and check out the vehicle for myself and if I do that I want to be pretty sure I'm going to buy it. So any help from the experts for negotiating with the seller would be greatly appreciated. Thanks!

 

[geanes]

First off, don't let Mazda touch the truck under any circumstance. I don't trust them as far as I can throw them. Toyota or a Toyota specialist only. The price for the rack seems waaaaay high. You could source a reman rack from Detroit Axle and have it installed for under $1k. The TB/WP can be sourced from Amazon for under $200 and probably another $3-400 in labor. Noisy bearing? If it needed replaced, a Toyota dealership could do it with an OEM bearing for much less than $525.

You should baseline all fluids anyway (oil, transmission, AHC fluid, coolant, differentials, power steering and brake fluids). $700 is about right for all of those. You could do most of those yourself easily and on the cheap (oil, AHC, diff fluids).

$18k is a bit to ask considering the TB/WP wasn't done. I'd negotiate $2k off that price using the MSRP of $2k for the 90k service as part of the negotiation.

Did you get a CarFax? Did you register on Toyota.com and look up the VIN for maintenance history? Did the Lexus dealer run an AHC test to see if it's healthy (neutral pressures, graduation test)? If the AHC is also going out, you're looking at $2k minimum to swap to a conventional suspension if you don't do your own labor ($1-$1.5k if you do your own labor).

Seems to me they neglected some major maintenance issues. Raises red flags for me personally.

 

[soh]

Thanks for your response. The numbers definitely sounded high. Was planning to baseline anyway, though their $700 quote only includes three of those so obviously would go a different route. That's good advice about using the MSRP and $2k is what I think would be fair. I got the carfax but it doesn't have as many records as I'd like; same for MyLexus.com

I talked with the mechanic and he said that AHC looks great and moves fully up and down but he didn't mention those tests specifically. Thanks for your input. I'm waiting to hear back from the seller about what concession they are willing to make. I thought $18k was a good price without any needed repairs. These trucks are so expensive in CA but it's hard to do this from afar...

 

[2001LC]

Often times it's not actually the rack leaking. Closer inspection needed.. Alternatives available that can really save.

Coolant flush is a must, it should have been done already. Timing belt should have been done. Front bearings probably just need repacking and should have been done 4 times by now. These are red flags PM not keep up. Not a big deal and sometimes a good thing, just be ready. At the price still not bad if clean.

All fluid should be flushed.

 

[SlowBuild]

FWIW: I bought my 2006LX in MN in May with bad rack, charcoal canister, water pump, and front diff. LX dealer where I bought it had reset evap code to turn off CEL, detailed engine bay and undercarriage to hide coolant, diff, and steering fluid leaks. I foolishly trusted them (being a Lexus dealer) and didn’t do my due diligence. I paid 16k but wish it was less. That being said, after changing out all the above along with bearings, front axles, drive flanges, etc and adding an air locker and new tires, I love the truck and couldn’t be happier with it. My wife, on the other hand, still resents the thousands we had to put into it and it’s a source of continual aggravation. Makes me real careful how I present new mods to her.

If it’s the right truck when you need it and you can make it work then I’m sure you’ll be happy in the long run and you’ll forget the baseline costs. But make sure your family’s on the same page or you’ll never hear the end of it. If I had paid an extra 6k up front and got it all in top shape I’m sure everyone would love it as much as I do. Just sayin.

I think @geanes advice on price is sound. You’re in the ballpark.

 

[soh]

Yeah, I had already assumed that the Lexus dealership had inflated or exaggerated some of the repairs. But it's good to hear there might be other options for addressing these issues. The GM of the dealership played dumb when I brought the problems up and then said he would probably be better off wholesaling it "since we are already selling the vehicle at a loss." I told him that if he could get more than $16k for it he should go for it but if not then we could talk. He said he'd talk to his boss (maybe he's not really the GM?) and get back to me. We'll see what happens but I won't be devastated if it doesn't work out. If I choose to pass on it, maybe I should post a thread in the classified section with the full inspection report so there'll be a (slightly) smaller chance they'll be able to foist in on some unwitting buyer?

The good news from all of this is that the Lexus dealership never tried to collect on the $130 they quoted me for the inspection, so thus far all I've invested is my time. I appreciate everyone's input.

 

[BudgetLC]

Granted it was 3 years ago but the local Toyota dealer did my timing belt/water pump for around $900. They also recommended doing the steering rack for the tune of $1200.

If I have found the correct vehicle, my biggest concern would be that it has been in an accident and spent its first 6 years in Illinois. Rust might be a problem. See if they can send you pictures of the under carriage.

 

[spaber05]

To address your question about how much these repairs should take off the asking price, I think 2K is a fair discount considering the ~$4500 quoted to bring it up to snuff. However, you could start at $2500-3k off and give yourself room to move. But I don't think you'd be viewed as unreasonable essentially asking the owner to split the cost of the repairs.

 

[tacoduck]

thats a long way to travel for a truck that needs that much work. Id most likely keep looking, or offer 15k and see what they say.

 

[vman07]

Here in the Bay Area, 18k for an 06' with 122,000 miles is a pretty good deal, if not an excellent deal. An LX with those miles at that price would probably go quickly here where we live.

I like the notion of offering 16k with the reasoning that you are being quoted $4,500 in work by Lexus. FWIW I flew from CA to Iowa to buy an 07' with more miles and some great mods, at a higher price. You're never going to be fully confident when purchasing a car across the country and it will always be a bit of a gamble. Best of luck, if you fly to CO to get it and drive it back, you will have a great story to begin your 100 series ownership.