I recently purchased a pre-owned RX450h after my wife and I took numerous test drives in the RX350 and RX450h. She decided to go with the hybrid version because:

1) even if when all is said and done the gas savings don't equal or exceed the increased cost we paid at the time of purchase (about $5,000 more for a comparably equipped RX350), at least she feels like she's saving money on a day-to-day basis at the pump
2) it's better for the environment
3) she loves the idea of turning on the engine and hearing nothing, sneaking up behind someone without them hearing the car , and just the overall quietness of the car
4) the cool blue Lexus logo
5) having something different from what most people have And not necessarily in that order!

As I was considering the pros and cons of the hybrid, I of course read several articles and posts about whether hybrids make financial sense, and like what other posters have already said, it would take anywhere from 7 to 12 years to break even, depending on how much one drives.

But, let's say I drive the hybrid for 5 years and save $3,000 in gas during those 5 years. When I go to sell or trade the car after year 5, isn't it reasonable to expect to get more for my hybrid than for the gas version? Maybe not the entire $5,000 difference, but something close to it, or at the very least enough to make up the $2,000 difference? None of the articles or posts I've read ever mention this, so maybe I'm missing something on the math here?

I went to Edmunds and did a True Market Value appraisal for a 2006 RX330 vs 2006 RX400h. I know it's not a perfect test, but I was wondering how a comparably equipped Rx would compare to a hybrid. I tried to make the cars as comparably equipped as possible, and priced it with 80,000 miles. The trade-in value for the hybrid was about $2,500 to $3,000 more than the RX330.

Any thoughts?

 

https://www.clublexus.com/forums/rx-...nd-rx450h.html

 

You'll never come out ahead with calculator justification. The bottom line is the same as if you bought Lexus instead of Toyota. You bought more car and features, and paid a little more for the model you wanted. The same is true when going from the RX 350 to the RX 450h. As the numerical designation suggests, you went 'UP' to a higher model. Yes, same body but it 'is' a different car. And it goes beyond the power train. You have more trim and equipment. Some of it (such as VDIM is available on the regular RX 350) but what would you have had to pay for such an expensive option. On yours it's standard. Plus the regular 350 doesn't come at any price with the same wheels, the larger grill, chrome trim around the fogs, stainless steel plate in back cargo area, and a few other pieces. Oh, did I forget the extra horsepower while you get 30% better mileage?

It's more car, greener, more economical, and 'VERY' high tech. Enjoy it and don't look back.

 

Cruiter,

When you say you'll never come out ahead with calculator justification, I guess the point I was trying to make is that you will come out ahead math-wise, if my calculator justification is correct. That is, after five years of ownership, I will have saved $3,000 in gas over the RX330, and I will get more for my trade in ($2500-$3000 more) when I go to buy another car. Again, I realize there are variables that aren't (or just can't be) accounted for. For example, over those 5 years of ownership, will there be any difference in maintenance costs between the two vehicles? I don't think so, but who knows. And what will the market demand be like in 5 years, which will affect the trade in price? My theory is that, given the fact that more and more car companies are coming out with hybrids this year, and based on the government's requirement that new SUVs get higher mpg, the 450h will bring in at trade in time even more than the $2500-$3000 difference that I roughly calculated on Edmunds between the 2006 RX330 and RX400h.

 

I agree with your calculations. As we get more data on resale values of hybrid vs their non-hybrid counterparts, it is important to factor the hybrid's higher resale value into the equation. Thus far, hybrid cars are retaining their premium. Even after accounting for gas savings, there is also the money recouped from the higher resale.
I liken it to building a new house with solar tiles installed. The upfront cost is higher, yet even if you do not get a full return on lower energy bills when selling the house a few years later, the higher resale of the home also makes up for the upfront cost.

 

Your point is well thought out. One other thing is maintenance cost, there is hardly any at all with the Hybrid other than tires, tire rotation and oil & various filter change's. Even the brake pads for the majority of owners will go around 100,000 miles or better as the electric motor does much of the moderate braking effort. If you look in your manual, it doesn't list spark plug replacement at all. No cam belt replacements, just enjoy the extras you get and drive on

 

I saw in todays newspaper in Montreal, 2010 RX450h with 5k in discounts (which is huge for Lexus Canada). I have a 2010 RX350 purchased in Sept 2009 and I only got 1k off list price (all dealers in Montreal were giving the same discount).