Edmunds: 2014 Lexus GX 460 in Short Supply on Dealer Lots
01-30-14, 11:46 PM
#1
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Edmunds: 2014 Lexus GX 460 in Short Supply on Dealer Lots
And internetz hates something, consumers don't lol. Seems the facelift and price changes have been great for the GX.
2014 Lexus GX 460 in Short Supply on Dealer Lots
01/21/2014 - By Rick Kranz
Just the Facts:
The 2014 Lexus GX 460 has been hard to find on dealer lots following a price cut, but Lexus promises that more are in the pipeline.
Through the middle of this month, Lexus had only a nine-day supply of GX models in stock, Edmunds has learned.
A Lexus executive said the plant in Japan is slowly increasing production.
DETROIT — Trying to find a 2014 Lexus GX 460 may be difficult for some car shoppers.
Since Lexus chopped $4,710 out of the sticker price for the base GX 460 in August, the SUV has been quickly rolling off dealer lots, Edmunds has learned.
Through the middle of this month, Lexus had only a nine-day supply of GX models in stock, up from four days at the end of December. Automakers and dealers consider a 60-day supply to be comfortable. Buyers have responded to a Lexus advertising campaign that offers the SUV (depending on down payment) for less than $500 a month.
While the base model "wasn't a large percentage of our total GX sales, it allowed our dealers to market that kind of price point," said Jeff Bracken, Lexus Group vice president and general manager. "It certainly has brought in some great traffic. Dealers have done wonderfully with GX. We just can't build them quick enough."
Bracken said the plant in Japan is slowly increasing production but "it will take us some time to build the supply up."
In an interview at the 2014 Detroit Auto Show, Bracken said "it will probably be April before we can recover to a level that is a little more healthy for our dealers, back to a 25, 30-day supply."
Lexus announced last August that the base GX model would sticker for $49,995 including $910 shipping, compared with $54,690 including $895 shipping for the 2013 model.
Besides cutting the base GX's sticker price $4,710, Lexus gave the 2014 SUV a slight exterior and interior makeover and reduced the standard equipment level. No longer standard on the base model are heated seats, rain-sensing wipers, a power-operated third-row seat and other equipment. A third-row seat remains standard but it is now raised/lowered manually.
Lexus last year averaged 1,005 GX sales per month, Bracken said. With the change in pricing, Lexus is averaging about 1,400 sales per month.
Edmunds says: If the Lexus GX 460 is on your short list, it may require a little hunting around to score one.
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01/21/2014 - By Rick Kranz
Just the Facts:
The 2014 Lexus GX 460 has been hard to find on dealer lots following a price cut, but Lexus promises that more are in the pipeline.
Through the middle of this month, Lexus had only a nine-day supply of GX models in stock, Edmunds has learned.
A Lexus executive said the plant in Japan is slowly increasing production.
DETROIT — Trying to find a 2014 Lexus GX 460 may be difficult for some car shoppers.
Since Lexus chopped $4,710 out of the sticker price for the base GX 460 in August, the SUV has been quickly rolling off dealer lots, Edmunds has learned.
Through the middle of this month, Lexus had only a nine-day supply of GX models in stock, up from four days at the end of December. Automakers and dealers consider a 60-day supply to be comfortable. Buyers have responded to a Lexus advertising campaign that offers the SUV (depending on down payment) for less than $500 a month.
While the base model "wasn't a large percentage of our total GX sales, it allowed our dealers to market that kind of price point," said Jeff Bracken, Lexus Group vice president and general manager. "It certainly has brought in some great traffic. Dealers have done wonderfully with GX. We just can't build them quick enough."
Bracken said the plant in Japan is slowly increasing production but "it will take us some time to build the supply up."
In an interview at the 2014 Detroit Auto Show, Bracken said "it will probably be April before we can recover to a level that is a little more healthy for our dealers, back to a 25, 30-day supply."
Lexus announced last August that the base GX model would sticker for $49,995 including $910 shipping, compared with $54,690 including $895 shipping for the 2013 model.
Besides cutting the base GX's sticker price $4,710, Lexus gave the 2014 SUV a slight exterior and interior makeover and reduced the standard equipment level. No longer standard on the base model are heated seats, rain-sensing wipers, a power-operated third-row seat and other equipment. A third-row seat remains standard but it is now raised/lowered manually.
Lexus last year averaged 1,005 GX sales per month, Bracken said. With the change in pricing, Lexus is averaging about 1,400 sales per month.
Edmunds says: If the Lexus GX 460 is on your short list, it may require a little hunting around to score one.
View more Consumer Car News articles
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01-31-14, 01:19 AM
#3
Moderator
^^^^I agree that the GX is a great vehicle...hopefully Lexus will keep the GX for a very long time..1GX, 2GX, 3GX...and so on...
01-31-14, 02:55 AM
#4
unfortunately i dont think GX will be around forever... quite likely there will be drastic changes next time, maybe it wont be Prado based anymore... GX doesnt sell much worldwide, because people buy LX instead or LC200. Unlike with LX/LC200, GX's biggest market by far is USA. So if they made larger and more luxurious RX-type SUV, it would probably easily double GX sales world wide.
01-31-14, 03:08 AM
#5
Lexus Test Driver
That's great to hear! Glad the GX is getting much deserved attention. However, there's a bit more to the story. Dealers have never ordered a lot of these. So with the freshened face and price cut, the slightest increase of sales is going to cause a problem. In this case, it looks like a moderate increase in sales, so that equates to quite a shortage.
Lesson: Anytime a car company drastically cuts the price of a vehicle, you've got to be prepared for increased sales. Of course one can't blame Lexus for not being prepared. Cutting sticker prices on a Lexus is not a common practice.
Lesson: Anytime a car company drastically cuts the price of a vehicle, you've got to be prepared for increased sales. Of course one can't blame Lexus for not being prepared. Cutting sticker prices on a Lexus is not a common practice.
01-31-14, 05:47 AM
#6
Lead Lap
That's great to hear! Glad the GX is getting much deserved attention. However, there's a bit more to the story. Dealers have never ordered a lot of these. So with the freshened face and price cut, the slightest increase of sales is going to cause a problem. In this case, it looks like a moderate increase in sales, so that equates to quite a shortage.
Lesson: Anytime a car company drastically cuts the price of a vehicle, you've got to be prepared for increased sales. Of course one can't blame Lexus for not being prepared. Cutting sticker prices on a Lexus is not a common practice.
Lesson: Anytime a car company drastically cuts the price of a vehicle, you've got to be prepared for increased sales. Of course one can't blame Lexus for not being prepared. Cutting sticker prices on a Lexus is not a common practice.
01-31-14, 07:29 AM
#7
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If lexus threw in a diesel I would consider this over a new X5.35D or a RR Sport V6, 15city and 20 highway is tough to stomach when the competition's # are that much better
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01-31-14, 07:40 AM
#8
Lexus Test Driver
Instead of suffering an embarassment of price cutting.
Lexus should offer multiple engine options like the Germans. Charge higher price for more features/better engine. This is not rocket science.
Overall Lexus powertrain options are so limited across the whole lineup.
Germans offer u a choice of Diesel, Hybrid, 6 and 8cyl models. (even Porsche has more engine options lol)
When are they going to give customers more choices???
Lexus should offer multiple engine options like the Germans. Charge higher price for more features/better engine. This is not rocket science.
Overall Lexus powertrain options are so limited across the whole lineup.
Germans offer u a choice of Diesel, Hybrid, 6 and 8cyl models. (even Porsche has more engine options lol)
When are they going to give customers more choices???
01-31-14, 07:47 AM
#9
Guest
Posts: n/a
Instead of suffering an embarassment of price cutting.
Lexus should offer multiple engine options like the Germans. Charge higher price for more features/better engine. This is not rocket science.
Overall Lexus powertrain options are so limited across the whole lineup.
Germans offer u a choice of Diesel, Hybrid, 6 and 8cyl models. (even Porsche has more engine options lol)
When are they going to give customers more choices???
Lexus should offer multiple engine options like the Germans. Charge higher price for more features/better engine. This is not rocket science.
Overall Lexus powertrain options are so limited across the whole lineup.
Germans offer u a choice of Diesel, Hybrid, 6 and 8cyl models. (even Porsche has more engine options lol)
When are they going to give customers more choices???
How are they "suffering" from embarrassment exactly? Lol
01-31-14, 08:56 AM
#11
01-31-14, 09:55 AM
#12
Lexus Fanatic
Other than the 370Z I cant remember another vehicle that had that big of a price reduction. Are they figuring out that the car is not competitive in the segment any more. Seems like they had to drop the price of the Z to keep up with the better cars coming out like the Mustang, etc. Not sure why .
I have never been a big fan of the GX. I prefer the lines of the LX but that thing is WAY to expensive .
I have never been a big fan of the GX. I prefer the lines of the LX but that thing is WAY to expensive .
01-31-14, 10:34 AM
#13
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Lol in the previous thread you wine about the price of the RX going up, in this one you cry about the price of GX going down. There's no keeping you happy.
01-31-14, 10:58 AM
#14
Other than the 370Z I cant remember another vehicle that had that big of a price reduction. Are they figuring out that the car is not competitive in the segment any more. Seems like they had to drop the price of the Z to keep up with the better cars coming out like the Mustang, etc. Not sure why .
I have never been a big fan of the GX. I prefer the lines of the LX but that thing is WAY to expensive .
I have never been a big fan of the GX. I prefer the lines of the LX but that thing is WAY to expensive .
01-31-14, 11:32 AM
#15
Lexus Test Driver
I stated that the RX has gone up in price as expected overtime. Its still a great value and sells like crazy.
I have zero issues with the RX besides that if it utilized the chassis of the GS - it would be a great performer in terms of driving dynamics. Current model is lacking in that area....