Lexus Complete Lease Program to Debut with UX Crossover

Posted by Kevin on September 14th, 2018

The Lexus UX will be available with a new leasing program when it arrives in American dealerships later this year. Called Lexus Complete Lease, the new program will be a two-year lease that includes both insurance and maintenance in the price.

The Complete Lease program will launch in Boston, Chicago, Los Angeles & Miami before expanding into other markets. There is no vehicle “swapping”, so leasers will remain in the same UX through the two years. Mileage is limited to 20,000 miles in total.

This pilot is just the beginning for alternative vehicle “ownership” programs from Lexus — Digital Trends spoke with USA general manager of product and consumer marketing Cynthia Tenhouse:

“We are studying other subscription, ride-sharing, and car-sharing options as well. This is our first entry,” [Lexus’ general manager of product and consumer marketing Cynthia] Tenhouse hinted. She stopped short of revealing what else Lexus is looking at. And, while only UX customers will be eligible to sign up for Lexus Complete Lease when the program launches, there’s a strong chance it will become available on other models in the coming months or years.

“We will expand it,” affirmed Tenhouse. When and in which direction will largely depend on how buyers respond to the idea of selecting a car like they choose a smartphone.

Lexus UX: First Generation
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C
Joaquin Ruhi
This is only loosely related to the subject of this thread, but a couple of days ago Toyota Japan announced a new Premium Class car rental service offering Lexus models. Here's the introduction of the official news release:



Pricing charts (in Japanese yen, of course) and additional information are best viewed on the original News Release
Interesting post!

Some rough math in USD:

CT: $3oo /day
RX: $4oo /day
LS: $600 / day

From a N.AM perspective, this pricing conversion is insane - the cost to rent an LS is comparable to renting an exotic car for the day. It gets worse if you rent per hour.
mikeavelli
It really makes a ton of sense.....
mikeavelli
It really makes a ton of sense.....
mikeavelli
It really makes a ton of sense.....
Joaquin Ruhi
It seems that "Lexus by Subscription" will be with us sooner rather than later. The Lexus USA Newsroom press release for the North American debut of the UX line contains this passage:

A New Way To Access a Lexus
When the UX goes on sale in December of 2018, there will be a new option in addition to the usual purchase and lease processes. For the first time in the history of Lexus, the UX will be offered through a subscription service. Details will be announced closer to the UX on-sale date.
Joaquin Ruhi
It seems that "Lexus by Subscription" will be with us sooner rather than later. The Lexus USA Newsroom press release for the North American debut of the UX line contains this passage:

A New Way To Access a Lexus
When the UX goes on sale in December of 2018, there will be a new option in addition to the usual purchase and lease processes. For the first time in the history of Lexus, the UX will be offered through a subscription service. Details will be announced closer to the UX on-sale date.
Joaquin Ruhi
It seems that "Lexus by Subscription" will be with us sooner rather than later. The Lexus USA Newsroom press release for the North American debut of the UX line contains this passage:

A New Way To Access a Lexus
When the UX goes on sale in December of 2018, there will be a new option in addition to the usual purchase and lease processes. For the first time in the history of Lexus, the UX will be offered through a subscription service. Details will be announced closer to the UX on-sale date.
krew
Lexus USA to Launch Vehicle Subscription Service

[​IMG]

The UX is confirmed to be one of the first models available.
View the original article post
krew
Lexus USA to Launch Vehicle Subscription Service

[​IMG]

The UX is confirmed to be one of the first models available.
View the original article post
krew
Lexus USA to Launch Vehicle Subscription Service

[​IMG]

The UX is confirmed to be one of the first models available.
View the original article post
Joaquin Ruhi
A Bloomberg story states that a Nashville, TN-area BMW dealer plans a pilot launch of the carmaker's Access by BMW vehicle subscription initiative this coming Monday 2 April, with more details to come.
Joaquin Ruhi
A Bloomberg story states that a Nashville, TN-area BMW dealer plans a pilot launch of the carmaker's Access by BMW vehicle subscription initiative this coming Monday 2 April, with more details to come.
Joaquin Ruhi
A Bloomberg story states that a Nashville, TN-area BMW dealer plans a pilot launch of the carmaker's Access by BMW vehicle subscription initiative this coming Monday 2 April, with more details to come.
S
  • S
    S10
  • March 27, 2018
This is already pretty common in other markets. In Italy for example the percentage of people or companies that rent their car for 24, 36 or 48 months is increasing faster than normal sales. Basically all companies offer this service, either directly or through long term rental companies.
I'm renting mine. Instead of buying my over $90.000 car, it's costing me around $700 a month (after tax returns) including road tax, full insurance, maintenance, tyres and a premium service. If I'm keeping the car for 3 years (which is the scheme I preferred, but I can change this along the way if I want to upgrade to a bigger or newer one, of course this costs extra), so in the end it has cost me $25.200 for those 3 years, while the depreciation of the car alone would be more than that. It's a win win for both the consumer and the seller not only because you'll change cars more often, this scheme invites people to rent more expensive cars than they would have bought, so the seller gets a higher pay out than he would have had selling a smaller car and he can earn money on the same car again when selling it after only 2, 3, or 4 years.
S
  • S
    S10
  • March 27, 2018
This is already pretty common in other markets. In Italy for example the percentage of people or companies that rent their car for 24, 36 or 48 months is increasing faster than normal sales. Basically all companies offer this service, either directly or through long term rental companies.
I'm renting mine. Instead of buying my over $90.000 car, it's costing me around $700 a month (after tax returns) including road tax, full insurance, maintenance, tyres and a premium service. If I'm keeping the car for 3 years (which is the scheme I preferred, but I can change this along the way if I want to upgrade to a bigger or newer one, of course this costs extra), so in the end it has cost me $25.200 for those 3 years, while the depreciation of the car alone would be more than that. It's a win win for both the consumer and the seller not only because you'll change cars more often, this scheme invites people to rent more expensive cars than they would have bought, so the seller gets a higher pay out than he would have had selling a smaller car and he can earn money on the same car again when selling it after only 2, 3, or 4 years.
S
  • S
    S10
  • March 27, 2018
This is already pretty common in other markets. In Italy for example the percentage of people or companies that rent their car for 24, 36 or 48 months is increasing faster than normal sales. Basically all companies offer this service, either directly or through long term rental companies.
I'm renting mine. Instead of buying my over $90.000 car, it's costing me around $700 a month (after tax returns) including road tax, full insurance, maintenance, tyres and a premium service. If I'm keeping the car for 3 years (which is the scheme I preferred, but I can change this along the way if I want to upgrade to a bigger or newer one, of course this costs extra), so in the end it has cost me $25.200 for those 3 years, while the depreciation of the car alone would be more than that. It's a win win for both the consumer and the seller not only because you'll change cars more often, this scheme invites people to rent more expensive cars than they would have bought, so the seller gets a higher pay out than he would have had selling a smaller car and he can earn money on the same car again when selling it after only 2, 3, or 4 years.
L
S10
This is already pretty common in other markets. In Italy for example the percentage of people or companies that rent their car for 24, 36 or 48 months is increasing faster than normal sales. Basically all companies offer this service, either directly or through long term rental companies.
I'm renting mine. Instead of buying my over $90.000 car, it's costing me around $700 a month (after tax returns) including road tax, full insurance, maintenance, tyres and a premium service. If I'm keeping the car for 3 years (which is the scheme I preferred, but I can change this along the way if I want to upgrade to a bigger or newer one, of course this costs extra), so in the end it has cost me $25.200 for those 3 years, while the depreciation of the car alone would be more than that. It's a win win for both the consumer and the seller not only because you'll change cars more often, this scheme invites people to rent more expensive cars than they would have bought, so the seller gets a higher pay out than he would have had selling a smaller car and he can earn money on the same car again when selling it after only 2, 3, or 4 years.


This trend might indicate people get poorer, but still want to profit from the latest. Also probably because people do not rely on the longevity of new products and also do not want to get left behind if their car is banned from cities of BEVs take over. It could also indicate people live in the present moment (short-term) and do not think about the future and what consequences it might have on their life, they are therefore not prepared for any hardships, should they occur.

Furthermore it indicates people are ready to pay their whole life for a service, they can't afford, rather than save or take debt for a certain time, because they consider the current economy unstable.
L
S10
This is already pretty common in other markets. In Italy for example the percentage of people or companies that rent their car for 24, 36 or 48 months is increasing faster than normal sales. Basically all companies offer this service, either directly or through long term rental companies.
I'm renting mine. Instead of buying my over $90.000 car, it's costing me around $700 a month (after tax returns) including road tax, full insurance, maintenance, tyres and a premium service. If I'm keeping the car for 3 years (which is the scheme I preferred, but I can change this along the way if I want to upgrade to a bigger or newer one, of course this costs extra), so in the end it has cost me $25.200 for those 3 years, while the depreciation of the car alone would be more than that. It's a win win for both the consumer and the seller not only because you'll change cars more often, this scheme invites people to rent more expensive cars than they would have bought, so the seller gets a higher pay out than he would have had selling a smaller car and he can earn money on the same car again when selling it after only 2, 3, or 4 years.


This trend might indicate people get poorer, but still want to profit from the latest. Also probably because people do not rely on the longevity of new products and also do not want to get left behind if their car is banned from cities of BEVs take over. It could also indicate people live in the present moment (short-term) and do not think about the future and what consequences it might have on their life, they are therefore not prepared for any hardships, should they occur.

Furthermore it indicates people are ready to pay their whole life for a service, they can't afford, rather than save or take debt for a certain time, because they consider the current economy unstable.
L
S10
This is already pretty common in other markets. In Italy for example the percentage of people or companies that rent their car for 24, 36 or 48 months is increasing faster than normal sales. Basically all companies offer this service, either directly or through long term rental companies.
I'm renting mine. Instead of buying my over $90.000 car, it's costing me around $700 a month (after tax returns) including road tax, full insurance, maintenance, tyres and a premium service. If I'm keeping the car for 3 years (which is the scheme I preferred, but I can change this along the way if I want to upgrade to a bigger or newer one, of course this costs extra), so in the end it has cost me $25.200 for those 3 years, while the depreciation of the car alone would be more than that. It's a win win for both the consumer and the seller not only because you'll change cars more often, this scheme invites people to rent more expensive cars than they would have bought, so the seller gets a higher pay out than he would have had selling a smaller car and he can earn money on the same car again when selling it after only 2, 3, or 4 years.


This trend might indicate people get poorer, but still want to profit from the latest. Also probably because people do not rely on the longevity of new products and also do not want to get left behind if their car is banned from cities of BEVs take over. It could also indicate people live in the present moment (short-term) and do not think about the future and what consequences it might have on their life, they are therefore not prepared for any hardships, should they occur.

Furthermore it indicates people are ready to pay their whole life for a service, they can't afford, rather than save or take debt for a certain time, because they consider the current economy unstable.
S
Levi
This trend might indicate people get poorer, but still want to profit from the latest. Also probably because people do not rely on the longevity of new products and also do not want to get left behind if their car is banned from cities of BEVs take over. It could also indicate people live in the present moment (short-term) and do not think about the future and what consequences it might have on their life, they are therefore not prepared for any hardships, should they occur.

Furthermore it indicates people are ready to pay their whole life for a service, they can't afford, rather than save or take debt for a certain time, because they consider the current economy unstable.
Europe thing is a company tax thing, car for hire, etc, it has nothing to do with cars being banned from cities... plus in big markets, there is a surplus of vehicles so they are giving big discounts via these deals. It does depend on the market, in some it is major way to buy car (like UK) for quite a while.
S
Levi
This trend might indicate people get poorer, but still want to profit from the latest. Also probably because people do not rely on the longevity of new products and also do not want to get left behind if their car is banned from cities of BEVs take over. It could also indicate people live in the present moment (short-term) and do not think about the future and what consequences it might have on their life, they are therefore not prepared for any hardships, should they occur.

Furthermore it indicates people are ready to pay their whole life for a service, they can't afford, rather than save or take debt for a certain time, because they consider the current economy unstable.
Europe thing is a company tax thing, car for hire, etc, it has nothing to do with cars being banned from cities... plus in big markets, there is a surplus of vehicles so they are giving big discounts via these deals. It does depend on the market, in some it is major way to buy car (like UK) for quite a while.
S
Levi
This trend might indicate people get poorer, but still want to profit from the latest. Also probably because people do not rely on the longevity of new products and also do not want to get left behind if their car is banned from cities of BEVs take over. It could also indicate people live in the present moment (short-term) and do not think about the future and what consequences it might have on their life, they are therefore not prepared for any hardships, should they occur.

Furthermore it indicates people are ready to pay their whole life for a service, they can't afford, rather than save or take debt for a certain time, because they consider the current economy unstable.
Europe thing is a company tax thing, car for hire, etc, it has nothing to do with cars being banned from cities... plus in big markets, there is a surplus of vehicles so they are giving big discounts via these deals. It does depend on the market, in some it is major way to buy car (like UK) for quite a while.
C
I think it's smart for Lexus to start off this service "small" with only one model and implicitly run it as a proof of concept and expand later on depending on the success.

Being the first model as the UX means the subscription cost won't scare people away from the price though my expectations are to see a small premium over a comparable lease.

I expect in Canada to pay ~$600/mth tax in, $0 down on a 48 mth lease, for a top trim F Sport. I'd consider it if the subscription would be up to $700-$750.
C
I think it's smart for Lexus to start off this service "small" with only one model and implicitly run it as a proof of concept and expand later on depending on the success.

Being the first model as the UX means the subscription cost won't scare people away from the price though my expectations are to see a small premium over a comparable lease.

I expect in Canada to pay ~$600/mth tax in, $0 down on a 48 mth lease, for a top trim F Sport. I'd consider it if the subscription would be up to $700-$750.
C
I think it's smart for Lexus to start off this service "small" with only one model and implicitly run it as a proof of concept and expand later on depending on the success.

Being the first model as the UX means the subscription cost won't scare people away from the price though my expectations are to see a small premium over a comparable lease.

I expect in Canada to pay ~$600/mth tax in, $0 down on a 48 mth lease, for a top trim F Sport. I'd consider it if the subscription would be up to $700-$750.
GTG
  • GTG
    GTG
  • March 27, 2018
It’s here !! Hip hip hooray!! Now in two or three years, it along with the rest will kill car rentals and merge insurance companies ,but it will be a move to stay current in the car market and keep customers. I think that this coming to Lexus will keep all ,even me , who lease multiple cars . Price low UX 350 to 400 please ! That would be the best start coming out the gate for Lexus. Merry Christmas to New UX OWNERS !
GTG
  • GTG
    GTG
  • March 27, 2018
It’s here !! Hip hip hooray!! Now in two or three years, it along with the rest will kill car rentals and merge insurance companies ,but it will be a move to stay current in the car market and keep customers. I think that this coming to Lexus will keep all ,even me , who lease multiple cars . Price low UX 350 to 400 please ! That would be the best start coming out the gate for Lexus. Merry Christmas to New UX OWNERS !
GTG
  • GTG
    GTG
  • March 27, 2018
It’s here !! Hip hip hooray!! Now in two or three years, it along with the rest will kill car rentals and merge insurance companies ,but it will be a move to stay current in the car market and keep customers. I think that this coming to Lexus will keep all ,even me , who lease multiple cars . Price low UX 350 to 400 please ! That would be the best start coming out the gate for Lexus. Merry Christmas to New UX OWNERS !
T
GTG
It’s here !! Hip hip hooray!! Now in two or three years, it along with the rest will kill car rentals and merge insurance companies ,but it will be a move to stay current in the car market and keep customers. I think that this coming to Lexus will keep all ,even me , who lease multiple cars . Price low UX 350 to 400 please ! That would be the best start coming out the gate for Lexus. Merry Christmas to New UX OWNERS !
$350-400 USD? Seems a bit optimistic, especially if it includes insurance (still tbd from Lexus), but I wouldn't turn that down :). I doubt it will mess too much with the insurance industry model. It may bolster the few that end up as partners in these kinds of arrangements, however. If you look at the model Volvo is adopting, the insurance is essentially outsourced to Liberty Mutual for a flat rate that's included in the monthly price. You also have to qualify for it, which makes perfect sense, since you can't offer the same flat rate insurance to someone who has a terrible driving record, credit, and whatever else they might use to determine a normal rate. I expect the "car subscription" idea to have quite a few variations/tweaks over the next few years, assuming that it sticks around.
T
GTG
It’s here !! Hip hip hooray!! Now in two or three years, it along with the rest will kill car rentals and merge insurance companies ,but it will be a move to stay current in the car market and keep customers. I think that this coming to Lexus will keep all ,even me , who lease multiple cars . Price low UX 350 to 400 please ! That would be the best start coming out the gate for Lexus. Merry Christmas to New UX OWNERS !
$350-400 USD? Seems a bit optimistic, especially if it includes insurance (still tbd from Lexus), but I wouldn't turn that down :). I doubt it will mess too much with the insurance industry model. It may bolster the few that end up as partners in these kinds of arrangements, however. If you look at the model Volvo is adopting, the insurance is essentially outsourced to Liberty Mutual for a flat rate that's included in the monthly price. You also have to qualify for it, which makes perfect sense, since you can't offer the same flat rate insurance to someone who has a terrible driving record, credit, and whatever else they might use to determine a normal rate. I expect the "car subscription" idea to have quite a few variations/tweaks over the next few years, assuming that it sticks around.

T