The Rise of the Lavish Lexus Dealerships


Lexus of Santa Monica

The Wall Street Journal has an article up about the increasingly lavish Lexus dealerships that are popping up all over the United States. It’s an in-depth and enjoyable article, detailing not only the amenities but explaining the logistics behind such large investments:

The Lexus of Palm Beach dealership moved from a much smaller, older facility a few miles away to a building that cost $35 million to construct, about four times what dealers typically spent on upscale showrooms 10 to 15 years ago…In November, the first full month of operation, the store sold 335 new vehicles, making it the fifth-largest Lexus dealer in the U.S. A year ago, it sold 199 and ranked 25th.

For the past few years, Lexus has offered deals under which it will allocate more cars to dealers that upgrade their facilities. For the $35 million investment in its new showroom, AutoNation’s Palm Beach can order 2,000 cars on top of its normal allocation over the next 18 months or so. That leaves room for a lot of growth. Last year, the store sold 2,710 new cars.

Well, it takes money to make money.

A great article, to be sure.

(The photo above is Lexus of Santa Monica, California.)

[Source: Wall Street Journal]

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