More Details on Lexus Complete Lease Program

Posted by Kevin on October 16th, 2018

More details about the upcoming Lexus Complete Lease program have been released — from Automotive News:

The Lexus Complete Lease, announced last month, is a two-year, 20,000-mile lease program for the UX that includes insurance, maintenance, tire-and-wheel protection and telematics services in one payment. The add-ons have fixed prices, but Lexus said the overall monthly price will be set by dealers in the selected markets.

“For us, it’s really important that the dealers are the ones, front and center, to work with the customer because that’s where the relationship exists,” said Cynthia Tenhouse, Lexus general manager of product and consumer marketing.

Lexus Complete Lease is aimed at first-time luxury buyers looking for a simple payment structure and a short-term commitment. Initially, the program will be limited to one metropolitan area in each major US region: Los Angeles, Boston, Chicago, and Miami.

Lexus UX: First GenerationUSA
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Comments
krew
corradoMR2
Cadillac charges $1800 per month for access to one car at any one time among the predetermined fleet.
$1800 per month is brutal for one vehicle, but the Cadillac line-up is rather limited and must cover all models. Lexus could break up their offering in two ranges: Standard & Executive. Standard could be ES & RX on down, and Executive could be all the L-models.

Levi
1. It is a "consumerist" concept, where the buyer always looses. Pay, you have, stop paying you have nothing. Change all the time and get the latest, even if it is not the best. Who needs a solid and reliable product, when you'll change before it breaks or is worthless?

Such programs, for consumers (not professionals) are money grab and only benefit the company (if it works). The customer always loses.
I don't see how it's much different than leasing, except maybe an additional cost for the flexibility. Sure wish I could swap my IS with an NX every few months depending.
krew
corradoMR2
Cadillac charges $1800 per month for access to one car at any one time among the predetermined fleet.
$1800 per month is brutal for one vehicle, but the Cadillac line-up is rather limited and must cover all models. Lexus could break up their offering in two ranges: Standard & Executive. Standard could be ES & RX on down, and Executive could be all the L-models.

Levi
1. It is a "consumerist" concept, where the buyer always looses. Pay, you have, stop paying you have nothing. Change all the time and get the latest, even if it is not the best. Who needs a solid and reliable product, when you'll change before it breaks or is worthless?

Such programs, for consumers (not professionals) are money grab and only benefit the company (if it works). The customer always loses.
I don't see how it's much different than leasing, except maybe an additional cost for the flexibility. Sure wish I could swap my IS with an NX every few months depending.
S
GTG
I agree man . The price that you quoted $1800 is a lot for one car .Volvo has there's for $600 hundred for the base XC 40 and $700 hundred for the R Design . If Lexus can do better on the price ( 400 ) to (500) for NX , IS , and UX this would work as well as make a subscription that allows the leaser to buy the car for less . This new subscription thing that everyone is doing won't pick up if the price is not less . The prices for Porsche,Cadillac and Mercedes are too high .
Why in the world would Lexus offer more expensive NX for less money per month than cheaper and smaller XC40?

Everyone needs to understand that this is an value added service from manufacturers, where they want to make more money, not less. So it is never going to be cheaper, but it might be simpler and let you switch cars easily.
S
GTG
I agree man . The price that you quoted $1800 is a lot for one car .Volvo has there's for $600 hundred for the base XC 40 and $700 hundred for the R Design . If Lexus can do better on the price ( 400 ) to (500) for NX , IS , and UX this would work as well as make a subscription that allows the leaser to buy the car for less . This new subscription thing that everyone is doing won't pick up if the price is not less . The prices for Porsche,Cadillac and Mercedes are too high .
Why in the world would Lexus offer more expensive NX for less money per month than cheaper and smaller XC40?

Everyone needs to understand that this is an value added service from manufacturers, where they want to make more money, not less. So it is never going to be cheaper, but it might be simpler and let you switch cars easily.
S
GTG
I agree man . The price that you quoted $1800 is a lot for one car .Volvo has there's for $600 hundred for the base XC 40 and $700 hundred for the R Design . If Lexus can do better on the price ( 400 ) to (500) for NX , IS , and UX this would work as well as make a subscription that allows the leaser to buy the car for less . This new subscription thing that everyone is doing won't pick up if the price is not less . The prices for Porsche,Cadillac and Mercedes are too high .
Why in the world would Lexus offer more expensive NX for less money per month than cheaper and smaller XC40?

Everyone needs to understand that this is an value added service from manufacturers, where they want to make more money, not less. So it is never going to be cheaper, but it might be simpler and let you switch cars easily.
L
spwolf
Why in the world would Lexus offer more expensive NX for less money per month than cheaper and smaller XC40?

Everyone needs to understand that this is an value added service from manufacturers, where they want to make more money, not less. So it is never going to be cheaper, but it might be simpler and let you switch cars easily.
Exactly. But "value added services" are usually marketed as "money saving advantage". Uber type car service is sold as cheaper than owning a car, when it is not true, because it depends on many factors. Have you seen a car ad with sale price, rather than monthly lease rate?

I don't have sales statistics, but when I worked for a car bank product strategy, the data I had was worthless. Quite surprising for big data and big brother surveillance to be so useless and incomplete.
L
spwolf
Why in the world would Lexus offer more expensive NX for less money per month than cheaper and smaller XC40?

Everyone needs to understand that this is an value added service from manufacturers, where they want to make more money, not less. So it is never going to be cheaper, but it might be simpler and let you switch cars easily.
Exactly. But "value added services" are usually marketed as "money saving advantage". Uber type car service is sold as cheaper than owning a car, when it is not true, because it depends on many factors. Have you seen a car ad with sale price, rather than monthly lease rate?

I don't have sales statistics, but when I worked for a car bank product strategy, the data I had was worthless. Quite surprising for big data and big brother surveillance to be so useless and incomplete.
L
spwolf
Why in the world would Lexus offer more expensive NX for less money per month than cheaper and smaller XC40?

Everyone needs to understand that this is an value added service from manufacturers, where they want to make more money, not less. So it is never going to be cheaper, but it might be simpler and let you switch cars easily.
Exactly. But "value added services" are usually marketed as "money saving advantage". Uber type car service is sold as cheaper than owning a car, when it is not true, because it depends on many factors. Have you seen a car ad with sale price, rather than monthly lease rate?

I don't have sales statistics, but when I worked for a car bank product strategy, the data I had was worthless. Quite surprising for big data and big brother surveillance to be so useless and incomplete.
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:

March 22, 2018
Toyota Introduces Premium Class in Car Rental Line of Business

Toyota Motor Corporation (Toyota) announces the introduction of a new Premium Class car rental service offering Lexus models with an expected commencement of service on April 2 at Toyota Rent a Car locations in Japan.*1

With the motor vehicle industry in a once-in-a-century transformational period, customer needs are extending beyond conventional vehicle ownership and into shared utilization. The number of operating vehicles in the total car rental market in Japan has grown rapidly from roughly 610,000 at the end of 2013 to approximately 800,000 by the end of 2017. Of these, the number of premium models (luxury vehicles) in operation has also increased at a rate surpassing that of market growth, from roughly 5,000 at the end of 2013 to approximately 9,000 by the end of 2017.

The new Premium Class has been introduced in response to such needs. In addition, the service was created for the expansion of opportunities for customers to experience the appeal of the Lexus brand through car rental.

The main models to be made available to customers to adapt to various user lifestyles include: LS, GS, and IS sedans; CT hatchback; and RX and NX SUV models.*2 In addition, models will be made available for rental according to two price ranges, namely, for the latest model (current generation) and for the model before the redesign (previous generation), to satisfy a broad range of customer needs.

Service will commence from Tokyo, as well as select regions*1, and will be expanded gradually nationwide.

Toyota Motor Corporation and Toyota Rent a Car locations offer the freedom and pleasure of mobility through a rental car service that is "safe, secure, comfortable, convenient, simple, and swift" with Toyota Rent a Car's extensive model lineup, its fleet of approximately 130,000 cars*3, and its network of roughly 1,200 locations nationwide*3 serving as the foundation.

*1 Service is expected to commence at select locations in 14 prefectures starting April 2. Further details will be made available on the Premium Class page of the Toyota Rent a Car website.

*2 Available models may vary by shop.

*3 As of August 2017

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

March 22, 2018
Toyota Introduces Premium Class in Car Rental Line of Business

Toyota Motor Corporation (Toyota) announces the introduction of a new Premium Class car rental service offering Lexus models with an expected commencement of service on April 2 at Toyota Rent a Car locations in Japan.*1

With the motor vehicle industry in a once-in-a-century transformational period, customer needs are extending beyond conventional vehicle ownership and into shared utilization. The number of operating vehicles in the total car rental market in Japan has grown rapidly from roughly 610,000 at the end of 2013 to approximately 800,000 by the end of 2017. Of these, the number of premium models (luxury vehicles) in operation has also increased at a rate surpassing that of market growth, from roughly 5,000 at the end of 2013 to approximately 9,000 by the end of 2017.

The new Premium Class has been introduced in response to such needs. In addition, the service was created for the expansion of opportunities for customers to experience the appeal of the Lexus brand through car rental.

The main models to be made available to customers to adapt to various user lifestyles include: LS, GS, and IS sedans; CT hatchback; and RX and NX SUV models.*2 In addition, models will be made available for rental according to two price ranges, namely, for the latest model (current generation) and for the model before the redesign (previous generation), to satisfy a broad range of customer needs.

Service will commence from Tokyo, as well as select regions*1, and will be expanded gradually nationwide.

Toyota Motor Corporation and Toyota Rent a Car locations offer the freedom and pleasure of mobility through a rental car service that is "safe, secure, comfortable, convenient, simple, and swift" with Toyota Rent a Car's extensive model lineup, its fleet of approximately 130,000 cars*3, and its network of roughly 1,200 locations nationwide*3 serving as the foundation.

*1 Service is expected to commence at select locations in 14 prefectures starting April 2. Further details will be made available on the Premium Class page of the Toyota Rent a Car website.

*2 Available models may vary by shop.

*3 As of August 2017

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

March 22, 2018
Toyota Introduces Premium Class in Car Rental Line of Business

Toyota Motor Corporation (Toyota) announces the introduction of a new Premium Class car rental service offering Lexus models with an expected commencement of service on April 2 at Toyota Rent a Car locations in Japan.*1

With the motor vehicle industry in a once-in-a-century transformational period, customer needs are extending beyond conventional vehicle ownership and into shared utilization. The number of operating vehicles in the total car rental market in Japan has grown rapidly from roughly 610,000 at the end of 2013 to approximately 800,000 by the end of 2017. Of these, the number of premium models (luxury vehicles) in operation has also increased at a rate surpassing that of market growth, from roughly 5,000 at the end of 2013 to approximately 9,000 by the end of 2017.

The new Premium Class has been introduced in response to such needs. In addition, the service was created for the expansion of opportunities for customers to experience the appeal of the Lexus brand through car rental.

The main models to be made available to customers to adapt to various user lifestyles include: LS, GS, and IS sedans; CT hatchback; and RX and NX SUV models.*2 In addition, models will be made available for rental according to two price ranges, namely, for the latest model (current generation) and for the model before the redesign (previous generation), to satisfy a broad range of customer needs.

Service will commence from Tokyo, as well as select regions*1, and will be expanded gradually nationwide.

Toyota Motor Corporation and Toyota Rent a Car locations offer the freedom and pleasure of mobility through a rental car service that is "safe, secure, comfortable, convenient, simple, and swift" with Toyota Rent a Car's extensive model lineup, its fleet of approximately 130,000 cars*3, and its network of roughly 1,200 locations nationwide*3 serving as the foundation.

*1 Service is expected to commence at select locations in 14 prefectures starting April 2. Further details will be made available on the Premium Class page of the Toyota Rent a Car website.

*2 Available models may vary by shop.

*3 As of August 2017

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