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You didn't list a year, so I guessed you made this purchase in 1981. In today's dollars that car cost about $4,900. Your payment was $353, and your insurance was $271.
Not even remotely close. My wife's Lexus is 10 years old, and KBB says we would expect a dealer to list it for around $11k, and sell it for around $10k (we could trade it in for $8k). There are a heck of a lot of reliable cars available for dramatically less than this, in part because they didn't cost $50k brand new. Hell, you can get a half-way decent reliable new or nearly new car for right around $15k. What exactly are you looking at that costs that much at 10 years old?
Lexus is grooming the young now, knowing they are going to be in their 20s and Lexus/Toyota wants to be the first vehicle these kids think of when they get to that point.. and hopefully hold on to them as a lifetime customer.. Honda/Acura, Nissan/Infinity are doing the same thing.. Where in I see GM and Ford aiming more toward the family group, all of their adverts seem to be aimed at families and people with homes and multiple kids.
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I agree with most of the trains of thought being kicked around....my first car was not in the 60's, but it cost $700....and I'm not ashamed to say I've earned minimum wage before. I wanted to be someone I wasn't (what kid doesn't), and I got mixed up with the wrong kids in college (richey rich) and one day I was the owner of a brand new Porsche 951 which lasted for almost 2 years. Flushing away all that money at a young age, maybe was a good thing. Some things are better, if we slip up at an early age and feel pain, because we can recover.
Today, in 2018, I'm sure a good car can be had for $15k. Probably $1,500 (I saw a 1998 Maxima SE 5-spd with good inspection stickers on facebook for sale). In late 2016, $14,xxx bought you a 2014 CPO Camry with about 32-33,000 miles--still had a little warranty left, then CPO.
Grooming young people works to some extent--Citi got me when I was 20, and AMEX got me at 22. I kind of like keeping my "member since" alive on the cards, both are $0/annual fee....
It is quantifiably objective though - Lexus started with new predator grille back in 2012... their worldwide sales increased by over 50% since then.
Of course, that does not mean that You should like it or buy it... but me not liking lexus vehicles does not mean it is not successful.
I bet 2018 will be even better year, if they manage to release new ES and UX in next 6-7 months.
Originally Posted by 703
Only in certain markets. AU and NZ they have been declining ever since that grill
Overall TMC sales have increased in the USA, but only certain models, and esp tall CUV/SUV vehicles have gone up like: RAV4, Highlander, NX, RX, 4Runner & Tacoma.
On the otherhand, models like LS, GS, ES and IS have actually gone down, while Avalon has gone down badly.
at some point the Millennial crowd will mature and grow up and be older buyers, Lexus knows they can't survive unless they start grooming the younger buyer now. simple circle of life stuff..
The problem all around is more than just the generation, it is the cost of things, when I was 16 you could buy a 1960s/1970s muscle car with low miles for $3,000 - $5,000, heck my first car was a 1968 Thunderbird that was 13 year old with 64k that I paid $1,800 for. I was making just above minimum wage so a 3 year loan on that car was $130 a month, or one weeks pay, insurance was another $100 a month.
Today a good reliable car that is even 10 years old is going to cost $15K; on a 5 year loan that is going to be $300 a month $600 with insurance or more, as such the Millennial generation isn't buying cars at 16,17,18 years old, even parents are holding off letting them drive, most are getting into their 20s before they get their first car. At my high school in the 1980s we had a dedicated parking lot for students, 1300 juniors and seniors and 90% of them drove. At my daughters high school there are 3,000 juniors and seniors and less than 25% drive. there is no student parking lot, and student have to pay $50 a semester to park on campus, so most park on the street.
Lexus is grooming the young now, knowing they are going to be in their 20s and Lexus/Toyota wants to be the first vehicle these kids think of when they get to that point.. and hopefully hold on to them as a lifetime customer.. Honda/Acura, Nissan/Infinity are doing the same thing.. Where in I see GM and Ford aiming more toward the family group, all of their adverts seem to be aimed at families and people with homes and multiple kids.
It is a good idea to target the young market with radical styling and sports-tuned suspension, esp Yaris, Corolla, C-HR and RAV4 buyers.
However, by the time we get to the bigger Camry, Avalon, and Highlander - the age group has increased, and the vehicles can't be too radical in styling nor too firmly suspended.
The Avalon may have been too radically styled, with too firm a suspension tune?
Move into the Lexus luxury market, and the cost of the vehicle increases, hence the buyer age increases again - styling and suspension needs to be toned down.
With flagships like the 5LS, styling and suspension must be toned down further.
In short, the styling and suspension tune should be in-tune with the age group of the buyer, keeping in mind that as the age increases, there is greater wealth, until retirement is reached.
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We're all getting old or older and as such we have a finite amount of time before we stop buying cars. If your audience hovers almost exclusively in that "old" range, well, the amount of water in that well is low, so to speak.
Having younger customers, especially for cars, provides an opportunity to build a long-term relationship that will endure. That's what these automakers want. They don't want people one or two cars away from no more cars, they want the younger folks with many more cars to buy and they want the chance to build that relationship so hopefully they keep coming back.
Lexus is repeating Cadillac's mistakes in my opinion. Like Cadillac, Lexus catered or caters to the more older crowd. They saw the writing on the wall and had to bring down that average age or face the aforementioned shallow well problem. Well Cadillac tried to address this by edging styling (AND NOTHING ELSE): poor technology, ancient power trains, and all around dull cars. IT CANNOT BE FIXED IF YOU JUST THROW ON A GIGANTIC GRILL AND SHARP EDGES. It needs everything, the entire image, persona.
Lexus got it wrong. Edgy styling that hides ancient everything: technology, power trains, you name it, it's old. IT WON'T WORK; SEE CADILLAC.
You have a very good point as styling alone won't win buyers or even retain current loyalists (aka myself). However, Lexus at least still has the wonderful craftsmanship and build quality that Cadillac is lacking. I recently moved away from Lexus (Audi last year, and now Stinger) mainly due to tech/powertrain superiority over Lexus while still having excellent craftsmanship. So not much left as a selling point left for Lexus and it's important they step it up since I'm ready to go back into the next IS for instance.
You didn't list a year, so I guessed you made this purchase in 1981. In today's dollars that car cost about $4,900. Your payment was $353, and your insurance was $271.
yeah that's not how it works,. $1,800 in 1982 in todays money is about $4,900 but the payment isn't adjusted for inflation, a $353 payment today would be for a $12K vehicle. $4,900 over 36 months is about $150/month with interest, not $353. Though insurance is right at around $275.
Not even remotely close. My wife's Lexus is 10 years old, and KBB says we would expect a dealer to list it for around $11k, and sell it for around $10k (we could trade it in for $8k). There are a heck of a lot of reliable cars available for dramatically less than this, in part because they didn't cost $50k brand new. Hell, you can get a half-way decent reliable new or nearly new car for right around $15k. What exactly are you looking at that costs that much at 10 years old?
sure it is, I got a 13 year old car in 1982 that had 64K miles on it. that means is was driven about 5,000 miles a year. . Now looking at CarGurus for all 2007 Lexus LS430s (since you are throwing your 10 year old LS in the mix) in my area with around 64,000 miles the average pricing is $16,000 - $18,000, if I want one with north of 120,000 miles the price drops to around to $10,000 - $12,000 if I go above 150,000 miles I can get one for $7,000 - $9,000
but lets say I go for something more realistic for a teen, an IS.. well nationwide cargurus shows ZERO IS models with under 130,000 miles.. but I did find 3 2006 IS 350s with 133,000 - 154,000 miles for $9K to $13K. so twice as many miles in a younger car for twice the price.
Sure I can buy a civic or corolla or some such, but I was relating my experience, being a teen with a 360 hp 429ci ThunderJet Muscle car that was 13 years old and had 64K miles. on it.. I guess I could probably find a 2002-2005 Camaro, Mustang or some such that might be equal, but if I did and it has under 100K on it, it's going to be pricey the couple I dug up on cargurus are over 155,000 miles and hitting around $5K - $7k, the one 2005 I found with under 100K (only 34K) was $23,000.
I think Lexus, Cadillac, Genesis etc all need to go and study up on what Audi had accomplished in a very short period of time.
Their innovation in technology and attention to build quality really has done wonders.
Throw in the S and RS cars plus the R8 supercar and they REALLY have become what Lexus, Cadillac and Lincoln failed to do which is have a complete Luxury line up.
10-15 years ago, Audi was non existent - now its held in much higher regard than Lexus with most friends/family that I help car shopping.
Now there also smaller luxury brands that have amazing products that were also non-existent just a few years ago like Volvo, AlfaRomeo, Maserati, Jaguar, Porsche, Land Rover.
Even the french are looking to make a comeback. There are so many choices and most of these cars are really GOOD!
+1. Marketing is really just companies trying to find someone who is in need of what they are selling - or at least, could be convinced of that. Maybe the "Genius Bar" was so named to appeal to those people who are not tech-savvy, and need someone who is "smarter" about tech to help them out? Obviously they're not certifiable geniuses - I'd have to see their IQ tests to verify their intellectual standing if I cared about that.
"Experience Amazing"... well, even that is debatable. Some people don't find cars amazing at all. I'd say most people on this forum would be able to find a car that's amazing, but to those who don't - should they feel excluded? I think not.
Yea I rather they go back to relentless pursuit of perfection. I'm not experiencing anything amazing in my GS. At least with the old slogan, I can feel assured that they are still trying, somewhat.
That's just it, though. You're not going to be 26 forever.....so enjoy your youth and vitality while you still can. And, no offense, but, the only thing "Old Man" about an LS430 is in the minds of your friends....not in reality. An LS430 can be enjoyed by persons of any age...as I myself liked luxury cars when I was young (still do). The only problem I had when I was young was that I couldn't afford the new luxury cars I wanted....I had to settle for 5-6 year-old models, and even then it was a stretch.
That's a very good point and forward looking. Most people will just think that Uber or Lyft is the answer to their transportation needs. At some point, everyone grows up and some will even have families. I want to see someone call an uber or lyft while lugging around their kids and baby seats, car seats, carriages and etc. At some point, I would assume those people will need to own car to carry those things or store those things when they are out and about and only take what they need.
At the end of the day, trying to bet on millennials is like betting on the stock market. I think they are not as into cars as we are or once were. they may restrain themselves better and stick to what they can afford with cash, or limit themselves to putting over 50% down and financing for 36 mos. or less. At any rate, if I were a betting person, they would be more satisfied with a $14,200 2 1/2 y.o. CPO Camry, than you or I would be.
Manhattan real estate is booming, it's where people want to be. So buying a taxi medallion would have been a no-brainer 10 years ago, right? Nope, paradigm shifted. I don't think the prognosis for expensive cars is all that good, 10 yrs. from now...
I think people are blowing this Millenial thing out of proportion.
Once these "kids" start to have families, do grocery shopping, drive baby to doctors office, to school, to mall etc. - they will be buying cars and will want the best they can afford. Car sales are not going anywhere but up......
Manhattan RE is not for average people.
Its for multi-millionaires that also have homes in CT, Westchester and/or Hamptons. All these ppl have cars. Or the retired folk that come up from Florida. Or for rich ppl that live here part time from Russia, China, Middle East etc.
Or for poor people that live in the Projects.
Medallions are worthless due to Uber not lack of driving.
there are a lot of generations. I believe the kid generation is now Generation Z, and Lexus would have to be advertising in memes . I know many millennials that are young professionals that are few years into their career. they are in the medical field, software, IT, pharmaceutical or combination of these.
I heard that the next generation of drivers will be into EV with autonomous driving.
Thus, there is no steering wheel nor gear shift due to autonomous self-driving, hence the front seats face the rear seats.
However, by then, apparently motor vehicles will no longer be owned, but be rented via Uber etc.
President Akio would be a bit crazy marketing to millennials.
I think people are blowing this Millenial thing out of proportion.
Once these "kids" start to have families, do grocery shopping, drive baby to doctors office, to school, to mall etc. - they will be buying cars and will want the best they can afford. Car sales are not going anywhere but up......
Manhattan RE is not for average people.
Its for multi-millionaires that also have homes in CT, Westchester and/or Hamptons. All these ppl have cars. Or the retired folk that come up from Florida. Or for rich ppl that live here part time from Russia, China, Middle East etc.
Or for poor people that live in the Projects.
Medallions are worthless due to Uber not lack of driving.
I agree. In fact, I would be willing to bet the current generation is will to pay more or extra for their cars at a younger age once they get into family cars etc etc. He average transaction prices are at all time highs.
Much of that is not necessarily from demand, but from the fact that government regulations and increasing customer desires for ever-more electronic features have also forced up the cost of producing vehicles to record highs. It costs money to include all of these features on new vehicles. Frankly, I myself could do without a lot of this stuff, though I certainly wouldn't want to go back to the days of carburetors and breaker-point ignitions LOL.
01-30-18, 10:09 AM
. I know many millennials that are young professionals that are few years into their career. they are in the medical field, software, IT, pharmaceutical or combination of these.
