Ka-Ching? LS460 Prices
10-09-06, 12:19 AM
#46
For instance in Korea
http://times.hankooki.com/lpage/biz/...8095211910.htm
A situation similar to Taiwan, and elsewhere.
The pricing is to match!
In many Asian countries, cars are expensive because of various taxes, not because of price gauging. Take Taiwan for example:
- 2006 LS430 base model = $96,900 USD
- 2006 GS350 = $80,800 USD
- 2006 IS250 RWD = $50,200 USD
That seems like a lot. But look at this:
- 2006 Honda Civic 1.8L = $21,000 USD
- 2006 350Z = 63,700 USD
- Mercedes S350L (yes a V6 3.5liter 272hp engine) = $148,700 USD.
It's not just Lexus that's expensive. Lexus has even a greater price advantage in Taiwan compared to the European cars. The same thing with Korea. The government imposes heavy import tax to discourage car buyers from buying imports. However, people who can afford imports would rather pay more and get the better product. It's an universal rule around the world.
If Lexus can sell GS350s at their US pricetag in Taiwan, then people will stop buying fully loaded Camrys, which is about the same price (about 45k USD in Taiwan now)
10-09-06, 01:28 AM
#47
What a way for Times Korea to spread propaganda and to pound on Japanese competitors while emphasize the value of their domestics. One needs to look at the whole automobile market of a country, sometimes even a region, to see if automakers are charging a normal cost. A BigMac combo at Switzerland costs $10 USD while it's a fraction of that in China. Doesn't mean Swiss McD is ripping everyone off.
In many Asian countries, cars are expensive because of various taxes, not because of price gauging. Take Taiwan for example:
- 2006 LS430 base model = $96,900 USD
- 2006 GS350 = $80,800 USD
- 2006 IS250 RWD = $50,200 USD
That seems like a lot. But look at this:
- 2006 Honda Civic 1.8L = $21,000 USD
- 2006 350Z = 63,700 USD
- Mercedes S350L (yes a V6 3.5liter 272hp engine) = $148,700 USD.
It's not just Lexus that's expensive. Lexus has even a greater price advantage in Taiwan compared to the European cars. The same thing with Korea. The government imposes heavy import tax to discourage car buyers from buying imports. However, people who can afford imports would rather pay more and get the better product. It's an universal rule around the world.
If Lexus can sell GS350s at their US pricetag in Taiwan, then people will stop buying fully loaded Camrys, which is about the same price (about 45k USD in Taiwan now)
In many Asian countries, cars are expensive because of various taxes, not because of price gauging. Take Taiwan for example:
- 2006 LS430 base model = $96,900 USD
- 2006 GS350 = $80,800 USD
- 2006 IS250 RWD = $50,200 USD
That seems like a lot. But look at this:
- 2006 Honda Civic 1.8L = $21,000 USD
- 2006 350Z = 63,700 USD
- Mercedes S350L (yes a V6 3.5liter 272hp engine) = $148,700 USD.
It's not just Lexus that's expensive. Lexus has even a greater price advantage in Taiwan compared to the European cars. The same thing with Korea. The government imposes heavy import tax to discourage car buyers from buying imports. However, people who can afford imports would rather pay more and get the better product. It's an universal rule around the world.
If Lexus can sell GS350s at their US pricetag in Taiwan, then people will stop buying fully loaded Camrys, which is about the same price (about 45k USD in Taiwan now)
It's funny, I was in Taiwan earlier in the year, having not been there for over five years, and the Camrys are everywhere now (as taxis in particular)!
10-09-06, 05:26 AM
#48
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Lexus will not price cars to be expensive just because. Leave that to BMW, Porsche and other brands who charge for the name. That is not the Lexus philosophy.
THE LEXUS COVENANT
Lexus will enter the most competitive,
prestigious automobile race in the world.
Over 50 years of Toyota automotive experience
has culminated in the creation of Lexus cars.
They will be the finest cars ever built.
Lexus will win the race because
Lexus will do it right from the start.
Lexus will have the finest
dealer network in the industry.
Lexus will treat each customer
as we would a guest in our home.
If you think you can't, you won't...
If you think you can, you will!
We can, we will.
To treat a customer like a guest in your own home, would you charge them to have a glass of coca cola? No.
Also you just cannot price your car expensively and think people will buy it. The Acura RL/Acura NSX/VW Phaeton/VW W-8 Passat/Inifniti Q45 and even the Audi A8 do not do well or have been discontinued in America because the BRAND was not percieved to be worth the price.
Lexus has moved up and up in price. The orginal LS started at 35k. 17 years later, it starts at 60k. It will reach 100k loaded in 600L h form.
Lexus knew it was coming, and that is why they told dealers to invest over $800 million dollars in their dealerships the last 4 years. B/C they will be moving more and more upmarket and the previous dealerships were not up to par. This shows they see the "big" picture. They could easily have launched this LS in old dealerships. It would have taken away from the total experience.
The Germans have the LUXURY of prestige and being the "status quo" to charge higher prices. They also have expensive unions to pay for. It doesn't matter, people will buy them for the badge. Lexus has slowly gotten this respect, people trust the brand and will pay more for it than its Japanese counterparts.
Lexus could cost MORE than the Germans and people would STILL SAY "oh it has no soul" or "its Japanese, its not real luxury" or "its a fancy Camry".
I feel what Lexus is doing, is the right method. Slow growth and build the BRAND, not build a CAR. Big difference.
THE LEXUS COVENANT
Lexus will enter the most competitive,
prestigious automobile race in the world.
Over 50 years of Toyota automotive experience
has culminated in the creation of Lexus cars.
They will be the finest cars ever built.
Lexus will win the race because
Lexus will do it right from the start.
Lexus will have the finest
dealer network in the industry.
Lexus will treat each customer
as we would a guest in our home.
If you think you can't, you won't...
If you think you can, you will!
We can, we will.
To treat a customer like a guest in your own home, would you charge them to have a glass of coca cola? No.
Also you just cannot price your car expensively and think people will buy it. The Acura RL/Acura NSX/VW Phaeton/VW W-8 Passat/Inifniti Q45 and even the Audi A8 do not do well or have been discontinued in America because the BRAND was not percieved to be worth the price.
Lexus has moved up and up in price. The orginal LS started at 35k. 17 years later, it starts at 60k. It will reach 100k loaded in 600L h form.
Lexus knew it was coming, and that is why they told dealers to invest over $800 million dollars in their dealerships the last 4 years. B/C they will be moving more and more upmarket and the previous dealerships were not up to par. This shows they see the "big" picture. They could easily have launched this LS in old dealerships. It would have taken away from the total experience.
The Germans have the LUXURY of prestige and being the "status quo" to charge higher prices. They also have expensive unions to pay for. It doesn't matter, people will buy them for the badge. Lexus has slowly gotten this respect, people trust the brand and will pay more for it than its Japanese counterparts.
Lexus could cost MORE than the Germans and people would STILL SAY "oh it has no soul" or "its Japanese, its not real luxury" or "its a fancy Camry".
I feel what Lexus is doing, is the right method. Slow growth and build the BRAND, not build a CAR. Big difference.
On another note, it's amazing how true the Lexus covenant turned out. What a company! They really did see the bigger picture back in 89. This is one of the reasons why I love Lexus and would always buy one, it's such a great brand with great stories and tremendous success.
The Lexus story is a story that I have witnessed, which is probably why I am soo passionate about it.
By the way, like many I would never pay over $55k for any Infiniti, Acura or VW. It would just seem too much money. However if I hear a Lexus costs over $70K I'm not shocked and would pay that kind of money as I would do with a MB, BMW and even Audi.
10-09-06, 07:21 AM
#49
Super Moderator
As I said in another thread, car prices in Canada did not increase more than in the U.S. the past few years, but Canadian prices were actually "cheaper" than U.S. prices a few years ago because the US$ was much stronger then. We Canadians are not really paying a lot more now using OUR money compared to a few years ago.
10-09-06, 12:29 PM
#50
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Hey have you all seen these prices yet? They are from JM Lexus in South Florida. I do have the indevidual prices at home. I saw the LS at the Miami Auto show yesturday.
packages w/estimated pricing for SE area
--------------------------------------------------------------------------------
LS460 #1
Premium package
CP comfort pkg
PA intuitve park assist
Trunk mat, wheel locks...
Approx $63680
LS460 #2
CP comfort pkg
NL Navi/Levinson with HDD and XM radio
PA intuitive park assist
Trunk mat, wheel locks...
Approx $69325
LS460 #3
CP
MZ Lexus Link
NP Navi/Levinson with advanced Parking Guidance, HDD, XM...
PA
PP Power trunk/door closers
Trunk mat, Wheel locks...
Approx $71320
LS460L
AS Air Suspension
LL Luxury pkg. with Semi-Aniline leather
MH Mark Levinson with HDD
MZ Lexus Link
PA Intuitive park assist
PI Advanced Parking Guidance system
Trunk mat, Wheel locks...
Approx $81420
LS460L
LP Exec. Seating pkg
AS
MH
MZ
PA
PI
Trunk mat, Wheel locks...
Approx $91315
packages w/estimated pricing for SE area
--------------------------------------------------------------------------------
LS460 #1
Premium package
CP comfort pkg
PA intuitve park assist
Trunk mat, wheel locks...
Approx $63680
LS460 #2
CP comfort pkg
NL Navi/Levinson with HDD and XM radio
PA intuitive park assist
Trunk mat, wheel locks...
Approx $69325
LS460 #3
CP
MZ Lexus Link
NP Navi/Levinson with advanced Parking Guidance, HDD, XM...
PA
PP Power trunk/door closers
Trunk mat, Wheel locks...
Approx $71320
LS460L
AS Air Suspension
LL Luxury pkg. with Semi-Aniline leather
MH Mark Levinson with HDD
MZ Lexus Link
PA Intuitive park assist
PI Advanced Parking Guidance system
Trunk mat, Wheel locks...
Approx $81420
LS460L
LP Exec. Seating pkg
AS
MH
MZ
PA
PI
Trunk mat, Wheel locks...
Approx $91315
10-09-06, 01:14 PM
#52
I mean, you have rich people spending $3k to travel from L.A. to N.Y.C. on First Class seats (a total of 12 hours). Might as well have the same people travel everyday for a mere $10k more in their cars...
10-09-06, 01:21 PM
#53
True, it's supposed to be 'like a first class seat' or a 'private jet.' You can bet those people, who pay $10,000+ for the fuel of a flight alone, can afford the LS 460 L Executive Class Four-Seat Package...
Meanwhile, the pricing IMO straddles between reasonable and INCREASE--as journalists in the auto world speak of the latter:
http://www.edmunds.com/insideline/do...ticleId=117063
Meanwhile, the pricing IMO straddles between reasonable and INCREASE--as journalists in the auto world speak of the latter:
http://www.edmunds.com/insideline/do...ticleId=117063
Lexus Boosts Price on Flagship LS Series
TORRANCE, Calif. — Lexus said its redesigned 2007 LS 460 sedan will start at $61,000, while the new long-wheelbase LS 460L will be priced from $71,000.
Toyota's luxury brand hasn't announced pricing yet on a third variant, the LS 600h, the hybrid, which goes on sale in 2007. The 2006 LS 430 sedan starts at just over $57,000.[...]
What this means to you: Toyota knows it can boost the price on the Lexus LS because someone will happily pay it. That's a nice position to be in as a car company.
TORRANCE, Calif. — Lexus said its redesigned 2007 LS 460 sedan will start at $61,000, while the new long-wheelbase LS 460L will be priced from $71,000.
Toyota's luxury brand hasn't announced pricing yet on a third variant, the LS 600h, the hybrid, which goes on sale in 2007. The 2006 LS 430 sedan starts at just over $57,000.[...]
What this means to you: Toyota knows it can boost the price on the Lexus LS because someone will happily pay it. That's a nice position to be in as a car company.
10-09-06, 10:50 PM
#55
I guess Lexus wants to reserve such a seat for such a clientele.
I mean, you have rich people spending $3k to travel from L.A. to N.Y.C. on First Class seats (a total of 12 hours). Might as well have the same people travel everyday for a mere $10k more in their cars...
I mean, you have rich people spending $3k to travel from L.A. to N.Y.C. on First Class seats (a total of 12 hours). Might as well have the same people travel everyday for a mere $10k more in their cars...
10-10-06, 03:03 PM
#56
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Wow, never knew the LS400 had standard cloth. Back then, Toyota really must be pushing the "some people want the luxury without leather." I know that was the case with the 2002 Camry. The XLEs had standard cloth and all the luxuries like moonroof, auto a/c, rear sunshade etc.
Yeah, I do remember the time when our cars were cheaper but Idon't think the difference was this great, was it? I mean the new LS has a $20k difference!
Yeah, I do remember the time when our cars were cheaper but Idon't think the difference was this great, was it? I mean the new LS has a $20k difference!
Another point to look at is the rise of the yen since the car was introduced in 1990. The dollar to yen ratio was much better back then. The car is definitely more expensive without a doubt, but it won't be if the currency exchange rate hadn't change as much. That said, the rise of the Euro also made the Europeans makes a lil bit more expensive than they would like to price them. Rolls, Aston, Bentley, etc. are immune because they are in a price unconcious market.
10-10-06, 05:28 PM
#57
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The Japanese weren't very leatherphilic back in the 90s, and I'm not sure if they still are at this point. Even the Century comes in cloth, if that puts anything in perspective. Most Americans and Europeans however, prefer leather in luxury cars.
Another point to look at is the rise of the yen since the car was introduced in 1990. The dollar to yen ratio was much better back then. The car is definitely more expensive without a doubt, but it won't be if the currency exchange rate hadn't change as much. That said, the rise of the Euro also made the Europeans makes a lil bit more expensive than they would like to price them. Rolls, Aston, Bentley, etc. are immune because they are in a price unconcious market.
Another point to look at is the rise of the yen since the car was introduced in 1990. The dollar to yen ratio was much better back then. The car is definitely more expensive without a doubt, but it won't be if the currency exchange rate hadn't change as much. That said, the rise of the Euro also made the Europeans makes a lil bit more expensive than they would like to price them. Rolls, Aston, Bentley, etc. are immune because they are in a price unconcious market.
10-10-06, 06:04 PM
#58
91k for completly loaded 460L is an steal... it is still 5k less than S550 without half of the features...
10-11-06, 12:44 AM
#60
It's amazing, the day has come when a Lexus sells for $91,000+...the move into the high-roller segment is something to behold. Fortunately there is the entry level IS/ES to keep, shall we say, younger Lexus buyers in the fold? 