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Why is Lexus Expensive Though it’s Made by Toyota?

Lexus is the 7th largest car brand in Japan. It is owned by Toyota. Lexus was the bestselling luxury car brand in the US for 11 consecutive years between 2002 and 2011.

Until it was overtaken by BMW, Mercedes, and Audi. These manufacturers offered luxury vehicles at cheaper prices.

Japan has a reputation for making budget cars. That’s why people often wonder, why Lexus is so expensive. Let’s try and uncover reasons why Lexus is one of the most expensive cars to come out of Japan ever?

Why is Lexus Expensive?

Lexus is expensive because it’s a luxury car brand made by Toyota that features high performance, efficiency, reliability, and premium quality.

Toyota started manufacturing luxury cars under the banner of Lexus in 1986. The brand has been known to introduce some most innovative features in automobiles ever since.

Japan has been flooding the world auto market with cheap yet reliable cars. Lexus is an odd one out. Hence, let’s take a look at the reasons, why Lexus is expensive?

why lexus is expensive
  • High Performance

The high cost of any car can be justified if it has a high-performance engine. Unlike other Japanese cars, all Lexus are laced with the most powerful engines.

Most Lexus cars have 4-5 liters V8 engines. These engines are designed to produce higher power outputs. Below are some of the most powerful and high-performance engines produced by Lexus:

  1. Lexus LS 600hL (610 hp)
  2. Lexus LS 600h (610 hp)
  3. Lexus LFA (552 hp)
  4. Lexus LC 500 (471 hp)
  5. Lexus GS F (470 hp)

Also read: Lexus vs BMW: Here’s What’s Better for You

  • Highly Efficient

Lexus cars despite being high performance are extremely efficient.

Among the latest models of Lexus, Lexus ES has become very popular in the market. Buyers have the option to choose between a hybrid and non-hybrid variant.

The non-hybrid variant is paired with 8-speed automatic transmission. It can produce 302 hp. On the other hand, hybrid variants are matted to continuously variable automatic transmission (CVT). The power output of this variant can go as high as 215 hp at a torque of 153 lb-ft.

The hybrid variant can cover over 44 miles in just one gallon of fuel.

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  • Uncompromised Reliability

Lexus cars are extremely reliable. They have grown in popularity due to their reliability. J.D. Power is an independent body that conducts vehicle dependability studies in the U.S every year. For the last 8 years, Lexus has topped these dependability rankings.

Lexus has scored 30 points above the average industrial reliability score in 2019.

The latest model of Lexus ES has been declared as the most reliable luxury sedan in U.S. Lexus isn’t behind in the luxury SUV category either. Lexus GS has topped the charts in the SUV category as well.

Read it: Do Hybrids Last Longer than Gas and Diesel Cars?

  • Maintenance Free

The maintenance of luxury cars can be a costly affair. But Lexus has been successful at delivering vehicles that require the least maintenance.

In 2019, 106 problems per 100 vehicles have been reported by the owners of three-year-old Lexus cars and SUVs. These problems were experienced over a period of 12 months.

The average maintenance cost of a Lexus is $551. As opposed to BMW and Mercedes with average maintenance costs above $900.

  • Better Value for Money

The competition of Lexus is with Mercedes, BMW, and Audi. According to consumer reports Lexus has offered the better value of money in terms of reliability across its all models. Audi was second in these ratings. However, Mercedes and BMW weren’t even close, when it comes to reliability.

If you’re spending a huge amount of money on a luxury car, you want good value for it. Lexus offers the best value for money among all luxury car brands.

  • Premium Quality

Lexus is a high-quality brand that takes pride in producing premium quality automobiles. The vehicles crafted by Lexus are dependable and comfortable. They offer smoother rides than others in the market. Lexus cars offer premium quality in every aspect.

For a limited amount of money Lexus offers hand-carved Japanese Kiriko glass decorations, programmable massage in all seats, advanced safety features, a full-color HUD so the driver doesn’t have to look down, and even limited self-driving.

Also read: 3 Best Lexus for the Money (Costs Included)

  • Japanese Manufactured

The Japan factor has also added to increase the cost of Lexus cars. Since cars manufactured in Japan are known to be extremely reliable. In reliability ratings, Japanese manufacturers have scored an unmatched 92 out of 100.

One is the reliability factor. Another factor is Lexus being an imported car brand. Though Lexus has manufacturing facilities throughout the world, still it is a Japanese company.

So, they have to pay extra duties and taxes. This all adds up in the consumer price.

  • Micro Detailing

Quality control and quality assurance mean cost. If the number of parts being rejected or discarded increases, so does the cost of the remaining parts.

It is often said that the devil is in the details. In manufacturing, it is easy to limit defective parts being produced in a process to below 5%. But to further reduce that number huge sums of money are required.

Minute details are cared for while manufacturing Lexus cars. Minor details like exact torquing of bolts, maintaining a dust-free environment, and proper calibration of tools are taken care of.

Read it: Are German Cars the Best in the World? ALL Pros & Cons

  • Best Resale Value

Lexus are luxury & expensive vehicles. A common drawback of buying expensive cars is that they lose their value very quickly.

But with Lexus the case is different. They hold around 42% of their values even after 5 years of operation.

Lexus vs Toyota: What’s the Difference?

The difference between Lexus and Toyota lies in performance, safety, and general brand recognition. Because of that, Lexus offers much higher prices.

The parent manufacturing company of Lexus is Toyota. Some people like to say that Lexus is just an over-priced Toyota. But is this true? Let’s take a look at the differences between a Lexus and Toyota.

It is a known fact there are more similarities than differences between the two. Toyota and Lexus share many common features and engine characteristics.

Lexus has swapped places with Toyota for the top spot in the ranking for most reliable car brand over the past ten years.

Lexus and Toyota give tough competition to each other. But Lexus has a slight edge over the latter in terms of performance. However, when it comes to safety both brands have been ranked by IIHS as one of the safest automobile manufacturers.

Toyota Camry won the award for the safest on-road car. It is because it has high-end safety features. If you compare it with Lexus cars, you would find similar features. But cheaper Toyota cars like 4runner have the worst crash test ratings. So, again Lexus will win in terms of safety.

If you’re in two minds regarding whether to buy a Lexus or a Toyota. Then you must consider how much you’re willing to invest in a car. If we compare the same class, same category cars of both brands on paper, there wouldn’t be much difference. But if feature, brand recognition & value are considered Lexus would come out on top.

What are the Most Affordable Lexus Models?

The most affordable Lexus models are Lexus CT 200H, NX 200T, UX 200, UX 200, IS300, and NX 300T. These models feature great equipment, performance, and comfort and are relatively affordable considering Lexus price strategy.

When it comes to price, Lexus has a reputation to maintain. But still, Lexus has offered several affordable cars. Some of which are listed below.

1. Lexus CT 200H: It is a compact and sporty hybrid car. CT comes at a price between $20,000 and $26,000. It is the cheapest car company has to offer. But even at this price, Lexus CT is equipped with the heated seats, Bluetooth connectivity, a reverse camera, a specialized safety system, cruise control, lane-keep assist, and a pre-collision system.

2. Lexus NX 200T: It is a turbocharged SUV that is equipped with 4 cylinder gasoline engine and a pair of electric motors to ensure smooth rides. Despite being a Lexus, SUV NX 200T is priced at a modest $25,000. It was discontinued in the U.S. But it is still being manufactured UK, Germany, and many other countries.

3. Lexus UX 200: It is an extremely compact SUV. It has been termed as one of the most fuel-efficient cars made by Lexus. The car is equipped with the latest technologies and features like driver assist and ventilated seats. This wholesome car is offered by Lexus for $34,000.

4. Lexus IS300 Sedan: It was originally released in 2019. However, newer models are expected to arrive in the market. This dependable sedan has been laced with the latest sporty features like GPS and navigation. Its starting price has been set at around $39,000.

5. Lexus NX 300T: It is a more recent release by Lexus. 5 seater luxury SUV offers better comfort and higher performance. This premium SUV is equipped with electronic features like blind-spot monitoring and surround sound. It is priced at $44,000.

Is it Worth Buying Lexus or Other Luxury Car Brand?

It is completely worth it to buy a Lexus. Their cars offer smooth, quiet rides and great reliability. In addition to that, most Lexus cars hold their value even after 5 years.

Along with ensuring the necessities of electronic safety and comfort. They have a bundle of features to offer. Luxury cars have a high-performance engine and premium quality. The label of a luxury car brand also adds thousands of dollars to your car price.

Lexus cars are long-lasting premium quality cars that exceed their expectation and reputation. Hence, it is worth it to buy a Lexus.

Reference:

encycarpedia.com, goodcarbadcar.net, driving.ca, osv.ltd.uk, lexusofsilverspring.com, lexusofsarasota.com, carlogos.org, askanydifference.com, cashcarsbuyer.com,

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