The July 2008 numbers for Lexus USA are in:
The LX 570 is shining like a single star in the sky, moving a staggering 843 units. Everything else, as you can see, is down — and significantly. Why is Lexus being hit so hard by the market slowdown? Two reasons jump out at me:
- Generally speaking, Lexus owners tend to be conservative, and in a recession are more likely to hold off on any big purchases.
- Lexus just isn’t pushing the same level of incentives. For their summer sales event, dealers are offering 2.9% APR financing. Compare that to BMW, who are offering 0.9% APR financing. Big difference there.
Combine these points with a lack of new models, and the numbers start to make sense. (Still, 40%+ drops are never pretty.)