LFA Model (2012)

Lexus LFA- Discussion, Pictures & News (new colors gloss black, blue, yellow)

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Old 01-06-11, 02:54 AM
  #3496  
TommyJames
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I spent ten years of my life managing troubled companies and I'd often have to piece together what went wrong where. In doing so, I came to quickly learn that the simplest explanation was usually the most accurate.

Exotic sales in the US since 2008's crash have been very slow. It doesn't matter what brand. There isn't a big line for the 458 as you'd normally have for the 430 replacement. Lamborghini had a tough time selling SVs in the US and only managed to sell about 42. NOTHING flew off the shelf from any brand. Nothing. Why in the world would the LFA be any different? Forget everything else. Now, set all that aside.

Next, look at all the changes Lexus made to their sales program. Look at WHEN they began advertising the car. Every single change in that program is a strong indicator of slow sales and I don't think it's any more complicated than that and it's not necessarily a reflection on demand for the LFA specifically. Remember, they were everywhere saying it was sold out. I heard all kinds of theories about the owners being in some special class, of quiet personalities, etc., when the simple truth is that exotics have not been hot sellers since 2008. All the theories in the world about this mysterious class of LFA buyers just doesn't hold up. This isn't to bash the car.

I think if Lexus sells more than 40 to individual owners in the US the car will be a success and it will be on par with other exotics in the same price range. That's just the exotic climate here at the moment.

The numbers for Canada and other countries seems about right based on the sale of other exotics of a similar price. As an example, there are two SVs in Canada, and not a lot of LP640s, so five cars seems like the right goal. Same with some of the other countries. It makes 170 cars in the US seem like a giant number and to me it is based on everything I know about exotics.

Lexus has a lot of dealers and if a fraction each buys one, that will still be a success in one step, and if those cars end up in actual, unrelated private hands, then it will have proven itself.

Even though the stock market is much improved, many buyers of exotics are still wary. Ask any dealer. For this reason, I'm not thinking 2011 will be all that different so I'm not expecting big numbers from anyone.

There are now about 60 LP700s built and Lamborghini has managed to keep a very tight lid on the looks of the car. That car won't even be revealed until March yet it's been running around the track for more than a year. If the LFA were a threat with big numbers in a similar price they would have revealed the car a long time ago. They reason they haven't is because they too know the market is slow right now and there is little to gain by revealing the car ahead of schedule. They are just now getting around to taking orders and deliveries begin in May. They are expecting the loyalists to be those first orders and so far our local dealer hasn't sold their allocation. The numbers on that car are incredible. So why no big demand? It's still a slow market for exotics.
Old 01-06-11, 05:23 AM
  #3497  
07grIS350
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Originally Posted by TommyJames
I think if Lexus sells more than 40 to individual owners in the US the car will be a success and it will be on par with other exotics in the same price range. That's just the exotic climate here at the moment.

The numbers for Canada and other countries seems about right based on the sale of other exotics of a similar price. As an example, there are two SVs in Canada, and not a lot of LP640s, so five cars seems like the right goal. Same with some of the other countries. It makes 170 cars in the US seem like a giant number and to me it is based on everything I know about exotics.
Canada got 10 LFA's, and they were gone by Late March 2010. The ps commented at our meeting that they could easily moved 30-35 cars if they had the allocation.
I've always loved exotic cars, but one of the biggest reasons not to buy one is their reputation for bad reliability. I am sure a lot of people feel the same. I think this is what Lexus/Toyota owners have in common. So given the huge customer base, I am pretty sure they can find 500, those who could afford/buy exotics, to step up and purchase one LFA.
The economy probably did put some twist to the selling program in the US, but given the population ratio for Canada to USA (1:10), I'd say that they've easily sold the first 100-150 units to the intended customers, and struggled for the the remainders.
Old 01-06-11, 07:32 AM
  #3498  
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Thanks. That is exactly my point.

2 LP640 in all of Canada does not sound right at all. I have seen atleast 5 - 6 different Murcielago LP640-4 in Calgary alone at different times with Alberta plates (an emerald metallic, a yellow targa one, a white one, a black one and a blue one). That is Calgary alone without considering the bigger markets like Vancouver, Montreal or Toronto. There were a total of 3 Enzo Ferrari sold in Canada for over $1 million apiece. I know in Canada the total number of Porsche Carrera GT sold were well over 20 and they were far more expensive than LFA ($500K).

Anyway, I rationalized earlier, if Lexus could sell 8 LFAs for over $800K apiece in Australia, considering the population difference (21 million vs 35 million), price of around $400K CAD and presence of 45% more millionaires and billionaires, they could have easily sold another 10 - 15 easily for a total of 20 - 25, if not more.

Originally Posted by 07grIS350
Canada got 10 LFA's, and they were gone by Late March 2010. The ps commented at our meeting that they could easily moved 30-35 cars if they had the allocation.
I've always loved exotic cars, but one of the biggest reasons not to buy one is their reputation for bad reliability. I am sure a lot of people feel the same. I think this is what Lexus/Toyota owners have in common. So given the huge customer base, I am pretty sure they can find 500, those who could afford/buy exotics, to step up and purchase one LFA.
The economy probably did put some twist to the selling program in the US, but given the population ratio for Canada to USA (1:10), I'd say that they've easily sold the first 100-150 units to the intended customers, and struggled for the the remainders.

Last edited by 05RollaXRS; 01-06-11 at 07:39 AM.
Old 01-06-11, 08:34 AM
  #3499  
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Originally Posted by TRDFantasy
Actually, I don't think its contradictory so to say.

Lexus has denied selling the LFA to certain celebrities in the US we have heard for their own reasons.

I think Lexus is simply selling the LFA to "true" car enthusiasts, and of course loyal Lexus buyers at the same time. If you've never owned a Lexus I don't think you get much of a chance at getting an LFA if you want one.

This is just a guess, but I think Lexus is possibly trying to avoid the "regular" exotic market and all the problems that come with it. Maybe Lexus wants to avoid the buyers who just buy for badge/image, or showoffs who will drive the car, but not necessarily appreciate it.

Again, I don't know the exact details of the LFA buyer selection process, but these are my guesses based on what little information we do have, and based on some of the information we have from the few LFA buyers who are on CL.

For example, I have friends and acquaintances, some of which have VERY tuned and VERY high-powered cars. I'm not trying to boast, just pointing it out. All of these friends and acquaintances are not big showoffs, and don't like to boast, brag, or make a big scene with their cars everywhere they go. All of them are enthusiasts who appreciate cars, some are loyal to certain brands, but one thing they have in common is they don't like the showoff type of car owners because they are not like that themselves. In many ways they are "low key" but they drive a lot, and use and enjoy the capabilities of their cars. Sometimes they draw a crowd with their cars, but they don't do it on purpose. None of my friends can afford an LFA though, but many of them would love to own one if they had a chance, and many of them are not even Toyota/Lexus fans. So in conclusion, IMHO Lexus is aiming for these kinds of buyers. Low key in the sense that they don't show off for the sake of showing off, but true car enthusiasts who might sometimes draw a crowd because they are using the capabilities of their vehicle.
interesting analogy, i am hearing you. if things are what we speculate, it will be interesting to see how things pan out. for the low key owners, i hope they are ready to deal with the constant crowds around the car gengar, get yourself ready!!!!
Old 01-06-11, 09:32 AM
  #3500  
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Originally Posted by TommyJames
I spent ten years of my life managing troubled companies and I'd often have to piece together what went wrong where. In doing so, I came to quickly learn that the simplest explanation was usually the most accurate.

Exotic sales in the US since 2008's crash have been very slow. It doesn't matter what brand. There isn't a big line for the 458 as you'd normally have for the 430 replacement. Lamborghini had a tough time selling SVs in the US and only managed to sell about 42. NOTHING flew off the shelf from any brand. Nothing. Why in the world would the LFA be any different? Forget everything else. Now, set all that aside.

Next, look at all the changes Lexus made to their sales program. Look at WHEN they began advertising the car. Every single change in that program is a strong indicator of slow sales and I don't think it's any more complicated than that and it's not necessarily a reflection on demand for the LFA specifically. Remember, they were everywhere saying it was sold out. I heard all kinds of theories about the owners being in some special class, of quiet personalities, etc., when the simple truth is that exotics have not been hot sellers since 2008. All the theories in the world about this mysterious class of LFA buyers just doesn't hold up. This isn't to bash the car.

I think if Lexus sells more than 40 to individual owners in the US the car will be a success and it will be on par with other exotics in the same price range. That's just the exotic climate here at the moment.

The numbers for Canada and other countries seems about right based on the sale of other exotics of a similar price. As an example, there are two SVs in Canada, and not a lot of LP640s, so five cars seems like the right goal. Same with some of the other countries. It makes 170 cars in the US seem like a giant number and to me it is based on everything I know about exotics.

Lexus has a lot of dealers and if a fraction each buys one, that will still be a success in one step, and if those cars end up in actual, unrelated private hands, then it will have proven itself.

Even though the stock market is much improved, many buyers of exotics are still wary. Ask any dealer. For this reason, I'm not thinking 2011 will be all that different so I'm not expecting big numbers from anyone.

There are now about 60 LP700s built and Lamborghini has managed to keep a very tight lid on the looks of the car. That car won't even be revealed until March yet it's been running around the track for more than a year. If the LFA were a threat with big numbers in a similar price they would have revealed the car a long time ago. They reason they haven't is because they too know the market is slow right now and there is little to gain by revealing the car ahead of schedule. They are just now getting around to taking orders and deliveries begin in May. They are expecting the loyalists to be those first orders and so far our local dealer hasn't sold their allocation. The numbers on that car are incredible. So why no big demand? It's still a slow market for exotics.
Interesting insight. Do you think though that demand might be low in the US but higher elsewhere, China, Brazil, Middle East, Russia etc? Or do these owners usually do similar moves even if they are on different continents?
Old 01-06-11, 09:56 AM
  #3501  
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Originally Posted by 1SICKLEX
Interesting insight. Do you think though that demand might be low in the US but higher elsewhere, China, Brazil, Middle East, Russia etc? Or do these owners usually do similar moves even if they are on different continents?
i personally think other countries can be very different. especially places like china, japan, dubai, etc... those places have different cultures, finance, and situations. i actually think the lfa can do very well in some other places. a lot of people over there with "new money" and in my words, they are in "spending mode"

in some way, i think the US is hit very hard by the economy. US$ is very weak, overall economy is so bad, it changes mentality of a lot of people.

just my thoughts though

and damn i didn't win mega on tues
Old 01-06-11, 10:22 AM
  #3502  
05RollaXRS
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UAE has been hit hard by the recession since they don't have that much oil and tourism is rapidly becoming their bread and butter and people these days are not travelling. Their biggest tourism market is Europe, which has been hardest hit by recession.

Speaking of Europe, Lexus intended to sell more LFAs in Europe than how many actually sold. I think Lexus only exceeded its expectations in Germany where they sold more than expected. Plus, in Europe LFAs was sold for 340,000 pounds or Euros, which was another issue.

China (huge import tax would not have stopped more from selling), Japan (even though, 165 have been sold already, still many applications were turned down), Canada (grossely under allocated with 10 considering the market size and number of exotic owners and even with 458 Italias selling for $320 - $330,000 loaded here, LFA has been priced quite well) could have easily altogether sold another 50 - 60 LFAs, if not more.

Again, Lexus really intentionally wanted to sell more LFAs in US than anywhere else for reasons of exposure.

Originally Posted by rominl
i personally think other countries can be very different. especially places like china, japan, dubai, etc... those places have different cultures, finance, and situations. i actually think the lfa can do very well in some other places. a lot of people over there with "new money" and in my words, they are in "spending mode"

in some way, i think the US is hit very hard by the economy. US$ is very weak, overall economy is so bad, it changes mentality of a lot of people.

just my thoughts though

and damn i didn't win mega on tues

Last edited by 05RollaXRS; 01-06-11 at 10:27 AM.
Old 01-06-11, 10:33 AM
  #3503  
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Originally Posted by 05RollaXRS
UAE has been hit hard by the recession since they don't have that much oil and tourism is rapidly becoming their bread and butter and people these days are not travelling. Their biggest tourism market is Europe, which has been hardest hit by recession.

Speaking of Europe, Lexus intended to sell more LFAs in Europe than how many actually sold. I think Lexus only exceeded its expectations in Germany where they sold more than expected. Plus, in Europe LFAs was sold for 340,000 pounds or Euros, which was another issue.

China (huge import tax would not have stopped more from selling), Japan (even though, 165 have been sold already, still many applications were turned down), Canada (grossely under allocated with 10 considering the market size and number of exotic owners and even with 458 Italias selling for $320 - $330,000 loaded here, LFA has been priced quite well) could have easily altogether sold another 50 - 60 LFAs, if not more.

Again, Lexus really intentionally wanted to sell more LFAs in US than anywhere else for reasons of exposure.
I wonder how they treated those that were turned down? Were they told "a spot may open up" or told 'sorry can't sell to you"? Would those people be upset if they were told later "hey a spot opened up"?
Old 01-06-11, 10:49 AM
  #3504  
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Well, there is one on this board. Have you seen his posts?? He is from Japan (his login goes by DaveLS600h or something) and extremely passionate about the LFA. He was turned down because Lexus said they maxed out their 165 allocations in Japan so they cannot offer him one even though he has owned several Lexus'.

I think he still hopes one day Lexus can tell him they are increasing the allocations in Japan, hence he can buy one. I think in his case, if anything it would make him happy rather than upset (which he is now for not being offered one).

But, it could be another logistic thing since Japan does not have many big open roads where people can drive such cars. Traffic is too congested, which is why Lexus is reluctant to sell anymore.

Originally Posted by 1SICKLEX
I wonder how they treated those that were turned down? Were they told "a spot may open up" or told 'sorry can't sell to you"? Would those people be upset if they were told later "hey a spot opened up"?

Last edited by 05RollaXRS; 01-06-11 at 10:56 AM.
Old 01-06-11, 11:25 AM
  #3505  
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Originally Posted by 05RollaXRS
Well, there is one on this board. Have you seen his posts?? He is from Japan (his login goes by DaveLS600h or something) and extremely passionate about the LFA. He was turned down because Lexus said they maxed out their 165 allocations in Japan so they cannot offer him one even though he has owned several Lexus'.

I think he still hopes one day Lexus can tell him they are increasing the allocations in Japan, hence he can buy one. I think in his case, if anything it would make him happy rather than upset (which he is now for not being offered one).

But, it could be another logistic thing since Japan does not have many big open roads where people can drive such cars. Traffic is too congested, which is why Lexus is reluctant to sell anymore.
Where is Dave?????
Old 01-06-11, 11:28 AM
  #3506  
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Originally Posted by 05RollaXRS
Thanks. That is exactly my point.

2 LP640 in all of Canada does not sound right at all. I have seen atleast 5 - 6 different Murcielago LP640-4 in Calgary alone at different times with Alberta plates (an emerald metallic, a yellow targa one, a white one, a black one and a blue one). That is Calgary alone without considering the bigger markets like Vancouver, Montreal or Toronto. There were a total of 3 Enzo Ferrari sold in Canada for over $1 million apiece. I know in Canada the total number of Porsche Carrera GT sold were well over 20 and they were far more expensive than LFA ($500K).
I think he meant 2 SVs, not regular LP640s.

Originally Posted by TommyJames
Why in the world would the LFA be any different?

All the theories in the world about this mysterious class of LFA buyers just doesn't hold up.
Sorry, but I must respectfully disagree.

Exactly as 07grIS350 has pointed out, he has never owned an exotic before, but yet he can easily afford an exotic. The LFA will be his first exotic car, and he believes there are many others like him out there. I totally agree with him.

Why is the LFA different? It's very simple, because it's not a car coming from a "showoff" brand and it's also not a car coming from a brand that's known for reliability problems. Almost every single established exotic brand is known as a "showoff" brand and also known for reliability issues. I can't think of a single exotic right now that has a stellar reliability record, or comes from a brand that's not a showoff.

Having a true exotic supercar from a non-showoff brand and from a brand renowned for reliability is a brand new occurrence for the exotic market.

With all due respect, I think it doesn't make sense to you because you are part of the "regular exotic" market, which Lexus wasn't really aiming for that much with the LFA.

Also in terms of "demand", Porsche claims to have well over 1,000 letters of intent to buy their 918 Spyder concept which would sticker for over 500K USD. I think there are buyers out there willing to pay for exotics even in this market, but they're very specific about which exotics they want, and that does not seem to include a lot of the "established" exotic brands.

Last edited by TRDFantasy; 01-06-11 at 11:33 AM.
Old 01-06-11, 11:52 AM
  #3507  
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Originally Posted by 1SICKLEX
Where is Dave?????
he's still pissed and disappointed
Old 01-06-11, 12:19 PM
  #3508  
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Originally Posted by rominl
he's still pissed and disappointed
lol

TRD brings up a good point about the Lexus maybe appealing to those that have the money for an exotic but just don't want an exotic brand car. I would assume to a greater extent they are like people who would buy a Phaeton or Equus over the LS/7/S class.

I do think there are a lot of successful people that have been happy Toyota/Lexus owners with the money to buy the LFA.

To be honest I am thinking we might be going at this all wrong. Maybe the closest comparison is Mercedes Benz with the SLR and SLS? Yes Benz has more history etc but both Lexus and Benz are selling cars that cost much more than the rest of the brand, both are known more so for luxury and both are selling these supercars.
Old 01-06-11, 12:50 PM
  #3509  
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Originally Posted by 1SICKLEX
lol

TRD brings up a good point about the Lexus maybe appealing to those that have the money for an exotic but just don't want an exotic brand car. I would assume to a greater extent they are like people who would buy a Phaeton or Equus over the LS/7/S class.

I do think there are a lot of successful people that have been happy Toyota/Lexus owners with the money to buy the LFA.

To be honest I am thinking we might be going at this all wrong. Maybe the closest comparison is Mercedes Benz with the SLR and SLS? Yes Benz has more history etc but both Lexus and Benz are selling cars that cost much more than the rest of the brand, both are known more so for luxury and both are selling these supercars.
those two conditions aren't enough, the person has to be a car lover and driving enthusiast, otherwise the person won't choose any exotic (look at Warren Buffett). so that shrink the sample size quite a bit. and of course, gengar and 07grIS350 are two examples

yup, the mb sls and slr, and maybe you can even pull in the audi r8 as well, for comparisons. i do agree they are somewhat closer resemblance. both cars had quite some resistance selling and getting into the market / community. and in some way both those models are going after similar group tommyjones and other exotic owners are in.

and that's what makes lexus so special and different, they are going in a complete different route
Old 01-06-11, 01:14 PM
  #3510  
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i wish i could have had this car


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