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Hybrids (HEV) and plug-ins (PHEV) are the way to go for now. As said in the article, EVs all over are losing value fast. I would not touch that model (or any EV) until the entire industry is sorted out.
Saying that, it's pretty obvious the future is not ICE-only. People are being conditioned to look at those as legacy products that will go away someday.
That is why they are offering huge incentives. In some sense the dealer (or Lexus?) is eating a lot of the depreciation. RZ at local dealer is $3K off and they are the most greedy type of dealer so I'm sure it can be had for much, much more off. By contrast they are still trying to charge markup on NX hybrid.
Just bought a used 2023 rz450e Luxury for $39.9K ($43K out the door). Used, but the dealership was the first owner. As a showroom car, it only had 1,800 miles, and had all the bells and whistles, including all the options like cargo net, trunk cover and so on. Since the dealer was the first owner, nobody benefitted from the first owner incentives, so they gave it all to me. The Reserve (30 day car rental) is not transferrable to the second owner, but they still gave it to me. All the trial subscriptions are good for 10 years. I was about to lease a 2024 premium (luxury too expensive) with a purchase price of $43K. It's a good thing I waited and got this one instead.
Is that true, though?
We don't really know what Lexus's RZ resale value would be since the car was only released last year.
32% in one year? Isn't that just the Cap cost reduction value on the lease!?!
Or is Lexus just assigning super-low residual value to the cars, and then throwing massive Cap cost reduction to move the inventory.
BMW, on the other hand, has traditionally assigned artificially-high residual value to its leased cards, to move the inventory and delay recognizing cost of sales subsidy until the end of lease term.
Differing tricks, same "move the inventory though low lease monthly payments" game.
Originally Posted by asj2024
Hybrids (HEV) and plug-ins (PHEV) are the way to go for now. .
Way to go where?
I would not want to own a hybrid either within or outside of warranty. Maximum complexity and opportunity for maintenance nightmares for minimal gain!
Originally Posted by asj2024
As said in the article, EVs all over are losing value fast. I would not touch that model (or any EV) until the entire industry is sorted out.
Not a concern when you are leasing.
At current RZ lease rates, it would be insane not to get one!
Just remember Toyota/Lexus has been making hybrids since the first Prius was produced in 1997; the first being sold in the US as a 2001 model. That is a lot of years to get things right from a company known around the world as a maker of quality and reliable products. I have no hesitation buying a Toyota or Lexus hybrid. EV's are a completely different story. They have not been ready for prime time, but that could well change in the future. With government subsidies (aka bribes) to encourage sales going away soon we will see just how popular they really are. My guess is they are not. I have several neighbors who invested in solar panels to take care of the cost of charging their EV's. The cost was well over $10K in every case I know of. If one cares about financial matters EV's dont' make any sense at all. The hellacious depreciation is another hidden cost that no one seems to want to talk about. I also pity those who purchased their EV's few a few years ago. With all the drastic cuts in the new prices used EV depreciation is much greater than makes any sense at all. The "saving the planet" philososphy makes no sense either. They just moved the pollution from the tail pipe to the power plant which are mostly greenhouse gas polluters of a major order. Facts are facts.
Unless it is a subsidized lease from the manufacturer leasing doesn't make sense. The cost of a highly depreciating vehicle such as an EV is built in to the lease payment. This information is readily available across the internet free of charge. Do your homework.
Just remember Toyota/Lexus has been making hybrids since the first Prius was produced in 1997;
Yeah, and they've been building cars since 1935. And it's all irrelevant.
You seem to be spending way too much time on an EV forum casting shade on EVs?!
My bet is you don't own one, and have hold-ups.
Go test drive a few - you might find out why we prefer them. At the very least you will then speak from experience and knowledge, not just raw bias and negativity!
Unless it is a subsidized lease from the manufacturer leasing doesn't make sense. The cost of a highly depreciating vehicle such as an EV is built in to the lease payment. This information is readily available across the internet free of charge. Do your homework.
Yes, but leasing is very often subsidized. For EVs the lease deals are frequently far superior to buying. You can for example lease the Renault 5 for less than what most people would say is the expected depreciation (so, it's effectively better than a 0% loan).
When it comes to leasing a new vehicle and buying a used depreciated vehicle, you really have to make your TCO calculations.
Even heavily depreciated vehicles may sometimes end up being more expensive to own when you consider increased insurance costs, more expensive financing (used cars usually have worse rates), increased repairs and maintenance (with EVs, a 3 year old car likely needs new tires, that alone is 1000 euros), more expensive services and the alternative cost of down payment+amortizing as opposed to holding it in a savings account or index fund.
There isn't really a set rule, there's exceptions to anything. You HAVE to calculate the TCO.
5 Reasons Why the Lexus RZ Is Depreciating at a Rapid Rate
