People will still buy Lexus cars as long as they continue to innovate and focus on quality.
The new Hybrid models certainly tell me Lexus is not going to let the Germans plow them under the dirt.

At the end of the day, most people buying expensive cars aren't too concerned about quality; most of those $75K+ cars are leased. The 'owners' of those cars will only have them for 24 or 36 months, so why worry?

At least with Lexus, if there is a problem they address it quickly and efficiently...

For those of us lucky enough to have seen the new LS460 in person... trust me when I tell you, this car will sell based on its' looks alone.

 

Right now I am looking at getting the S 550 or the LS 460 I like both cars. Right now I am leaning towards the S 550 because I like the way it looks as compared to the LS 460 plus I have not heard anything bad by people who have reviewed the car(S 550). Now potentially the LS 460 will be a very nice car it appeals to the tech side of me and I have heard that Lexus service is the best. We won't know how good of a car the LS 460 will be until someone gets a chance to sit in it and drive it.

If the Lexus is close to the pricing of the MB , Audi or BMW it might not attract the new luxury car buyer because most people have preconceived Ideas about what luxury is. The big three in luxury to the general public is MB, BMW, and Audi mostly the first two.

I think I am rare if pricing is close and I like the Lexus better I would buy the Lexus. I am a tech person so things like voice activated navigation the works as well as the Acura's system and being able to use the navi while driving(I am aware there is a work around now, but who's to say if that will work in the new LS) is important to me. A car that can park by it's self that’s cool and all the other tech that will be in the LS and the long wheel base is God sent for me. Yes I would buy a Lexus at it's new pricing.

 

Well my issue with Lexus is that I've decided I prefer leasing in many cases, and their lease rates generally are about as non-competetive as possible. That's a shame considering how much they brag about their great resale value which should make for great lease rates. But you see Audi, BMW, and Mercedes doing some great factory-backed lease specials... but almost never Lexus. Sure they might say they're doing a lease promotion event but they don't ever give any actual official rates, and that tends to translate poorly to actual quoted rates.

 

because they dont have to and they still sell cars :-)

 

Another thing with lexus is if you compare the equipment on the cars that will boost the prices of the german competitors. Example e350 cost 50k a gs300 is 44k if you add all the features that are standard on the GS and optional on the Eclass the 350's price soars to almost 54k. Not a good value to me.

 

Audi really isn't consider a big part of the luxury segment, in the same level Lexus, MB, and BMW is in the US

 

I'm curious about why you think Lexus cars are going up in price. I can see the IS being more expensive, but it offers so much more than the first gen. However, the new GS is not much more than the old GS (my 2003 went for $54K loaded and the new ones go for $58K).

Helping Lexus even more however is the fact that they have tremendous dealer profit in each car - especially compared to the Germans. So they can negotiate a lower price - even when the stickers are equivalent (which means they don't need as many incentives spwolf)

However, the one thing Lexus has to be careful of is having too many one trick ponys. Take away the RX and their sales are not so hot any more. The IS is saving the day this week on the car side as the LS, GS, and ES were all suffering. Of course they have some nice things coming with the new ES, LS, and GS and that should really help.

 

RX is not big part of sales anymore though - 3 series has more %%% of BMW sales than does RX of Lexus sales :-). And I am sure Lexus likes to sell better margin car more anyway...

 

i think a few years ago i wouldnt have considered lexus a true competitor except for the LS and GX, but now since their entire sedan lineup is changed up with new designs interiors and engines, they are a real contender now

 

March sales show the RX accounts for more than 40% of all sales - cars and trucks combined. Obviouly higher margins are preferable, but you don't walk away from a winner.

 

As jwa pointed out, it is more than 40% of all Lexus sales - I consider that a big percentage.

Also remember, the RX is only two models, the 3-series is 12 different models.

 

...when people have made there mind up. It's human nature to stick to what you belive until the truth slaps you in the face,then you wake up. And dear Milla speaking on what people can afford they can give a rats a.., is based on your opinion. I have plenty of friends due to my 12 years in the music business (major label) that are wealthy and frugal even in there choice as far as value. I have millionaire friends who don't tip at all or buy new furniture, some still go to flea markets because there money smart, so saying rich means you don't care about bargins is not true in all cases. Also read "Millionaire Next Door" you"ll find if you havent already read this book that most wealthy Americans or let me say a good percentage prefer used autos. And as for me I had a S-class before buying my LS and as you well know the S-class, is more costly. Im not talking about my problem I have with Lexus, I have no problem with Lexus. Im simply seeing the truth and stating so. I also am a fan of Lexus cars, but I am a realist. The molding around my bumper came of and they replaced it, but it did. They have slipped and raised there prices. And yes its America, if I dont like, I wont buy it. Thats not what I'm saying. Im speaking on equally equipped cars not base models. And compairing Benz to Lexus is unfair also because Benz uses more expensive parts and materials to make there cars. The Japanese use some of the same designs for their cars and parts and there Government supports the auto makers allowing better price and thats also why you will notice if you pay close attention to likeness with Nissan (Maxima, Altima and 1998-2005 GS) and some likeness in other Japanese automakers cars, like now with Daimler/Chrysler and Benz and the Crossfire looking like the SL Benz. I know more about this issue than you guys see. This isnt a debate Milla about affording a Lexus. I also have a LS and by the way can afford it, and dont need to go down to Toyota Avalon(insult you even made that upady comment) . The comedy in this is I am pro keeping prices lower and you guys (not all of you) are acting like salesman for Lexus,and want them to charge more or agree if they do liek the cars Lexus make are perfect.Unless Jesus himself is building these cars there not mistake free. And most J.D pwer awards are based on reports by owners. I havehad on my LS alone 3 issue I never reported to the dealer, I fixed the myself. All im saying is hay for real now family, if your over 30 years old and purchased your first Lexus like me at 25 years old or younger or purchased at any age, a 1990-1998 Lexus what made you buy besides quality. For most it was price/quality . We can overlook the gap closing (price) if we want but its a case of worm on a hook if you ask me. To each his or her own. I can afford a new 2007 LS Milla when it arrives but will pass because i'd rather have the deal and quality Lexus usta offer with the 1990-2000 LS400 models. I got the LS430, I know but were I was buying there were no LS400's I liked when I was looking. Again people Lexus was the pretty girl that wasn't a size 4 dress size, she had meat on her. Now my girl is becoming model thin. I loved her for her and now thats gone because she changed, not some completely.Better or worse is yet to be seen but she changed. GOD IS GOOD

 

This is a good way to see what people think about the change in the company,some agree with me some don't. Again no disrespect to anyone if we disagree its all in fun and conversation. GOD IS GOOD.

 

Clearly, Lexus is still priced under the Germans but now more than ever, they are closer in price with many models. And Lexus just sold over 300,000 cars.

So the market has responded. As Lexus has gotten pricier, sales have increased. And unlike many of their compeititors, there is no Lexus priced below 30k.

 

As stated earlier, I also feel Lexus quality is slipping some. There are many posts on this site that proves it. Lexus is still waaay better than the germans, though. As for the price wars...I still think Lexus is a much better bargain. You can get in the entry level cars, the IS and ES for under 36K. You get a lot of car for that price too. At MB, the little c-class coupe is in that price range but it's not luxurious and it's a kid's car. The c-class sedans cost over 40K and you get a lot less car for the money. The clk is just a 2 door c-class but costs around 50K. Go up 10 and you get in an SC430. E-class, way over priced. Slk, please. I won't argue about the cls, s, sl and cl. They seem appropriately priced. Actuall, the cls uses the e-class chasis. That means it's way overpriced at 80K (68 with forced options).