CT a UK bargain and whats going on with LEXUS pricing?

[talaipwros]

https://www.truecar.com/prices-new/lexus/

As you can see, in comparison to the USA market, GS is overpriced, LS is massively operpriced but good old CT is a bargain (or actually properly priced)

Any idea why is Lexus doing this? Don't they want to sell more cars? I love the brand and bought the CT - and had to use carwow to get a good deal - for my wife but when I had to replace my GS250, went to BMW because of the marked difference in pricing strategy

CT is a bargain though!

[NemesisUK]

"Over priced" only when making an invalid comparison? What would it cost to purchase and import such a model? 

Lexus sell massively more cars in the USA, their relative ranking in the luxury market is, I suspect, somewhat lower than here in the UK and that would be mostly due to the cost of said models. 

I feel Lexus wish to maintain their status here and can afford to 'loose' sales in the UK in the knowledge they can shift the numbers in the States. 

I've always thought it a fuitile excercise to check prices across markets, just leads to disappointment...

[talaipwros]

Hi Nemesis, merry christmas.

 

In UK you can buy 3 and a half CT with the cost of one LS, in the USA only two and a third. thats why I think the pricing is odd, as if they are not interested in selling more luxury cars, they reach the target and thats it!

Perhaps has to do with the spare parts inventory ( CT has tons of common parts with Auris, so it is cheaper to support). But wouldn't be nicer if LS costed £50K rather than £72K.

 

That is the price it should have, if you compare it with the 7Series for instance that is more expensive than the LS in the USA.

[NemesisUK]

Merry Christmas  Vasileios 

I see now how you've made the comparisons. Yes peculiar, some of these corporate machinations but they must fulfil some global target. The point regarding spares support could be very relevant..

[rayaans]

3 hours ago, talaipwros said:

https://www.truecar.com/prices-new/lexus/

As you can see, in comparison to the USA market, GS is overpriced, LS is massively operpriced but good old CT is a bargain (or actually properly priced)

Any idea why is Lexus doing this? Don't they want to sell more cars? I love the brand and bought the CT - and had to use carwow to get a good deal - for my wife but when I had to replace my GS250, went to BMW because of the marked difference in pricing strategy

CT is a bargain though!

Because your comparisons are flawed. 

Youre comparing hybrids to none hybrids and disregarding option packages in the US which significantly increase prices by thousands of dollars.

May as well start comparing apples to bananas

For example you can only get 2 CT200h's in the US for 1 GS450H

But in the UK you can get 2.4. Yet you fail to understand that the lowest spec of GS450H you can get in the UK is actually the F Sport which would cost much more than base price of €63k in the US - say roughly €70k. 

You can't compare prices of hybrids and none hybrids against each other. If a GS350 was available here in the same spec as the US, it'd probably be cheaper. 

Also you need to add the PDI and handling charge - about €1k and remember that US cars don't come with certain items like locking wheel nuts.

[talaipwros]

Quote

lowest spec of GS450H you can get in the UK is actually the F Sport  

but without the mark levinson at basic price

 

in any case, I still think that the LS is vastly overpirced ( the GS as well but less so) and CT a bargain ( costs less than the auris hybrid spec for spec!)

We can also see that when comparing the LS and the 7 series real life prices

 

 

 

 

 

[DanD]

Comparing prices across countries is a rather pointless exercise because there are too many parameters to consider:

- model specs (as well as drivetrain choice) varies tremendously from one market to another, with some equipment being optional in some, but mandatory in others

- cost of transport depending on where the car is built vs where it is being sold

- local taxes (including import taxes, road taxes, pollution taxes, fuel taxes and general cost of ownership)

- exchange rate

- local wealth

- cost of cars relative to local income

- cost of left-hand-drive to right-end-drive conversions, or vice-versa

- local competition

- brand and model popularity

- cars tend to be more expensive (with less standard equipment) in their home markets: patriotism sells! - I remember looking at buying a BMW whilst living in Germany in the late 90s. Electric windows, tinted windows and central locking were still optional extras!

 

[ColinBarber]

On 12/25/2016 at 2:31 PM, talaipwros said:

but without the mark levinson at basic price

 

in any case, I still think that the LS is vastly overpirced ( the GS as well but less so) and CT a bargain ( costs less than the auris hybrid spec for spec!)

We can also see that when comparing the LS and the 7 series real life prices

The LS is expensive in this country, but it is a fully loaded long wheelbase hybrid, which they don't sell in the US. The US LS also has to be specified with options to bring it up to UK spec, such as the $7k luxury pack, $16k seating package and the $2k adaptive suspension package. Also remember that the UK LS has £16k of VAT included in the price.

The GS 450h is expensive as the lower grades have been taken away, only the 300h gets those.

The CT is priced reasonably well. The Auris used to be much cheaper and better spec'd but over the last couple of years the price has crept up to be comparable with the CT. The Auris is still slightly better value, especially as it has a better 5 year warranty.

[talaipwros]

I am returning to the topic as I was looking for a replacement to my F01 730d as I am quite pleased with my CT

Carwowed a GS450h Premier and 740d xdrive M-sport

surprisingly, the GS450H Premier  turned up more expensive  - on a monthly payment at PCP - than a 740d xdrive M-sport  with an added £14.000 on spec when putting zero deposit.

surely  there is a problem here?

[rayaans]

On 2017-5-24 at 10:28 PM, talaipwros said:

I am returning to the topic as I was looking for a replacement to my F01 730d as I am quite pleased with my CT

Carwowed a GS450h Premier and 740d xdrive M-sport

surprisingly, the GS450H Premier  turned up more expensive  - on a monthly payment at PCP - than a 740d xdrive M-sport  with an added £14.000 on spec when putting zero deposit.

surely  there is a problem here?

Not entirely

There's a £16k discount for customers buying the 740d. For a leasing company that will be even less as they don't pay VAT etc on these cars. Therefore, when they sell, they'd probably get the same amount back after so many years as they paid for it. With the GS it doesn't work like that as the discount is only high enough to remove 1 year worth of depreciation so after 1 year, it'll start costing the lease company money and they'll pass that onto you

Also, turns out Lexus USA have removed the CT from the lineup for 2017 MY. Still being sold elsewhere however.

[talaipwros]

thanks for your comment

PCP is not a lease, it's a purchase so there is VAT.

The lexus had a £6500 discount and the 740d after all the extras about £19.000. The big problem for lexus  though is the 5.9% APR on finance ( in comparison to the 0% in BMW)

So overall a fully specced  740d xdrive Msport was less expensive than the GS450h Premier . That - in my view - doesn't make much sense and Lexus should review its finance offer

[rayaans]

On 2017-5-29 at 5:49 PM, talaipwros said:

thanks for your comment

PCP is not a lease, it's a purchase so there is VAT.

The lexus had a £6500 discount and the 740d after all the extras about £19.000. The big problem for lexus  though is the 5.9% APR on finance ( in comparison to the 0% in BMW)

So overall a fully specced  740d xdrive Msport was less expensive than the GS450h Premier . That - in my view - doesn't make much sense and Lexus should review its finance offer

Ah yes, that would account for a big difference. Truth is, the 740d is in a class above and won't sell as well, especially as the 730d is good enough. Additionally, the depreciation on it is massive so BMW has to offer something to entice customers

[Casa1862]

Not that Lexus depreciation isn't as bad. My IS lost almost half its value after TWO years. I sold my 23 month old IS300h Exec privately for £16500, Lexus offered £15250, exactly half its retail value, that's a spotless car with 20k miles and two Lexus services. 

[rayaans]

4 hours ago, Casa1862 said:

Not that Lexus depreciation isn't as bad. My IS lost almost half its value after TWO years. I sold my 23 month old IS300h Exec privately for £16500, Lexus offered £15250, exactly half its retail value, that's a spotless car with 20k miles and two Lexus services. 

Depreciation is relative though. 

Additionally, outright depreciation doesn't matter. It all depends on the price you pay and the price you get back. Someone negotiating a bigger discount and selling privately will face less "depreciation" than someone who buys at the first opportunity the dealer gives them and sells it back to them.

Furthermore, you're comparing Market value vs Trade value. Market value is price of the car on the dealer forecourt. Trade value is what it sells for at auction and is essentially what you get for P/X and there will be a £2-3k difference between those. 

Say you bought an Exec now. Its listed at £31k, yet when discounted, its about £27k without any options. You've saved a chunky £4k from the beginning so you can knock this off the outright depreciation. And I believe the depreciation figures are based on market value so if you p/x you'll always face more in terms of depreciation. 

Hence why the better option is to buy a 6 month - 1 year old car which has taken a £10-15k hit depending on what you go for.

[talaipwros]

7 hours ago, Casa1862 said:

Not that Lexus depreciation isn't as bad. My IS lost almost half its value after TWO years. I sold my 23 month old IS300h Exec privately for £16500, Lexus offered £15250, exactly half its retail value, that's a spotless car with 20k miles and two Lexus services. 

interesting

I wonder if we should create a "for sale" section in the forum where we can put our vehicles when the time comes to part exchange/sale them 

[Bluesman]

5 hours ago, talaipwros said:

interesting

I wonder if we should create a "for sale" section in the forum where we can put our vehicles when the time comes to part exchange/sale them 

There already is a For Sale section but you need to be a Gold Member to use it.