Twstrchasr

When Lexus first appeared in 1989 or 1990 the big appeal was that the LS400 was a very good value for the price. In 1992 we bought a new 500 SEL and it stickered for about $100,000 + change. The LS cost what $50-55K ? Now look at a S550. Its price has not increased very much compaired to the 1992 model. Now look at the price of the new LS. It's price is significantly higher than the first generation LS. Sure the Lexus is a good car, but its appeal as being significantly less expensive is not as great as it used to be. The pricing of the new LX should fit in between the base RR and the RR s/c. With Lexus increasing their prices, as I said about the LS, in a sense they are not the great value they once were. Whether they are good cars is not the point, the price difference between the Lexus and its competition is not so great anymore. Point in fact--I am cross shopping an '08 LX with a RR s/c and a G500. The good point is I lean towards the LX over the base RR. But, for probably not that much more $$ I can go up market to the RR s/c or the Gwagen. This is all a moot point until I see and drive the LX....so, my $.02 !!

pagemaster

I am not so sure here. The S 500 starts a $87,000. The LS starts at $61,000. That is $26000 less.

As for the LS going up in price. This is intentional by Lexus. The first LS was designed at that price point. The new LS has gone up in price because of everything it offers. A very high tech 4.6 engine, 8 speed transmission, dual VVTi, pre collision system, ottomon in back, parks itself. All these feature would not be included if the LS model was priced at $50k. The first LS400 was quiet, reliable, smooth, luxurious inside but it did not offer many feature the competition did not have.

tigmd99

Really good thread to read...thanks.

I am in agreement with many above...hopefully, Lexus won't increase the price too much...a few percent is OK, but if it's a whopping 12%, then that's a tad much.

I guess that Toyota/Lexus strategy is that:

1. The TLC now takes over the previous LX470's price position. Previously, i never knew why the previous TLC and Lexus GX were so close in price. The Sequoia now becomes Toyota's high volume large SUV.

2. The LX570 is now for the top-of-the-line uberLux SUVs, such as RRSC and GL550. These SUVs don't really need to have amazon-like off-road capability, but they better be damn good at pampering the owners with luxury and elegance.

So, pricing stages for body-on-frame HD SUVs for the consumer are:

4runner --> Sequoia --> GX470 --> TLC --> LX570

For a consumer, he/she can choose which one fits his/her budget and purpose the best. The new TLC has pretty much everything anyways (unlike previous TLC), except for a few wood strips, optional ML system, and bling bling. The nice thing is that Toyota/Lexus is now squarely aiming the TLC and LX at different population. The TLC is more for the active people with it's more off-road capable suspension system. The LX570 is more for the rich & famous people who want excellent on-road performance and luxury.

So, if i were in the market, then i would probably choose the TLC, while my brother would choose the LX570. In the end, although i disagree with the potential price hike on the LX570, i can see where Toyota/Lexus is going with this SUV pyramid strategy.

Gojirra99

Actually, S550 is LWB only in the U.S., so the direct comparison would be with the LS460L which starts at $71,000.
I agree, plus I think the first LS was priced lower for less profit margin just to get their foot in the door of the luxury car market in 1990.

JessePS

I can not wait to see the price they will have for the LX.

Here in Canada we pay about 35% more for the LX470, then in the US, because of the current exchange rate.

I would be shocked to see the LX570, cost less then the LX470.

I have a feeling the LX570 will start around $75k USD. I just wonder how much we will have to pay here in Canada. It would be nice if it be about the same price as the US, if not between $85-90k CDN. Would be a nice price decrease.

Thing is with the premium, you see the people who actually have money in this country.

Gojirra99

IMO, I think the best you can probably hope for the LX570 in Canada is that they keep the prices about the same as the LX470, just like the LS460's base price is about the same as the LS430 it replaced, whereas in the U.S., they increased the base price by about $5000 more.

aedgington

I wouldn't be surprised at a significant price jump for the LX simply because they've been taking away LC sales by having such a small separation.

I do agree, however, that the GL will be the default luxury SUV if they do price into the mid-70's.

syswei

The 2008 Yukon and Tahoe hybrids get 20mpg combined (AWD, 21.5mpg RWD...see http://autoweek.com/apps/pbcs.dll/ar.../FREE/70926003 ). And the new GMC technology will be coming to the Escalade in about a year.

The LX570 is going to get terrible mileage in comparison. As I suggested earlier, this is another reason that Lexus shouldn't price the LX570 too high. Lexus has NOTHING to compete with the new GMC hybrids or MB (and soon Audi) diesels when it comes to MPG.

Jayson

I still think that the people who will buy the LX570 new are the kind of people that do not flinch at $4/gallon fuel prices. Lexus will not have any problems selling this newly redsigned SUV.

Jayson

I agree; around here in Austin the LX is much more common than a LC. The LC's I see on a daily basis are the 98-02 models with very few of the newer editions. I think that price point of the 03-07 models just kills people and they opt for the LX.

syswei

I own a 2000 LX470 and I certainly flinch when considering an LX570.

Why? Because if we own the car for 8 years (as we have our current LX) we are going to put 200k miles on it. At 15mpg (I hope) that would be 13,333 gallons x $4/gal = $53,333. Compared to a GL320 CDI at 20mpg, 10,000 gallons x $4/gal = $40,000. The difference of $13k is a fair chunk of change, even on a $75k or whatever vehicle. At least for me.

Too bad the GL CDI isn't legal where I live.

Uragon

"Why? Because if we own the car for 8 years (as we have our current LX) we are going to put 200k miles on it. At 15mpg (I hope) that would be 13,333 gallons x $4/gal = $53,333. Compared to a GL320 CDI at 20mpg, 10,000 gallons x $4/gal = $40,000. The difference of $13k is a fair chunk of change, even on a $75k or whatever vehicle"

Look again:

200,000 miles / 8 years = 25,000 miles per year
yearly LX at 15 mpg: 25,000 miles /15 mpg = 1667 gal in a given year
1667 x $4/gal = $6668.00 per year LX fuel cost

For GL at 25,000 miles per year
GL at 20 mpg: 25.000 miles / 20 mpg = 1250 gal in a given year
1250 x $4/gal = $5000.00 per year GL fuel cost

Diesel actually cost less that premium fuel in USA.

Where did you go to school? UConn?

syswei

Actually Harvard '84. Mather House.

Did I, anywhere in my post, indicate that the $13k figure was per year?

Looks like someone read a little too fast and jumped to that conclusion.

pagemaster

Right on. I agree 100%/

I think Toyota said the average income of Land Cruiser shoppers is near $240,000 so Lexus must be higher. If you make that much per year I don't want to hear about how you are having trouble with gas prices.

syswei

To those who think mpg doesn't matter in $75k+ vehicles:

1. Please explain why Lexus came out with a $100k plus LS600hL? It sure wasn't because they were offering more performance or more room for the extra bucks vs the LS460L. The LS600hL is 2% SLOWER and has 35% less trunk room than the LS460L. What it does offer is exclusivity and 11% better MPG (which is a lousy increase, imho). It appears that Toyota/Lexus recognize that even "rich people" sometimes care about mpg/emissions, even if some posters on this board don't.

2. What some of you don't understand is that just because someone can afford say an extra $1-2k per year in extra gas costs doesn't mean they don't care about such costs. Did you know that even in the mid-90s, when Bill Gates was already worth many 10s of billions, he absolutely refused to fly anything other than coach class? It wasn't because he couldn't afford it. It was because he didn't think first class, or a private plane, was a good value, necessary, or "worth it". (It was only later, after people started putting pies in his face, that he changed his flying habits. For someone like that, if they view say an MB diesel SUV as being otherwise as desireable as a Lexus SUV (I'm not saying everyone will), if the MB gets appreciably better MPG, they'll get the MB.

3. Even for the average LC buyer making $240k per year, an extra $1-2k per year can be an appreciable fraction of available disposable income after paying taxes, mortgage on the McMansion (easily $75k per year per $1M loan, before tax benefits which might bring it down to "only" $45k or so per M), private school for the kids (can be $20-30k per kid in some areas of the country; I know some familes who have 3, 4, even 5 kids in private school at the same time, and aren't on financial aid), or even worse, college for the kids ($45k plus for top schools, per kid). There are MANY people making $240k per year and more, who after expenses like that don't have a whole lot of money leftover, and so really do care about an extra $1-2k per year for gas.