Lexus Slashing Prices!

In a surprising move for the Lexus brand, prices on many of the popular options on the 2007 Lexus RX 350 have been slashed by as much as $940.

The company said the new pricing on the premium package, which includes a leather interior, power tilt/telescoping steering wheel with memory, roof rack, illuminated entry system and power moonroof has been reduced by $900 to $1,245.

The price on the vehicle's performance package has been slashed by $940 and is now $4,055. It includes 18-inch graphite-plated aluminum alloy wheels, air suspension, a sequential automatic transmission and rain-sensing wipers.

The price on the moonroof package has also been cut by $900 to $2,840. The package includes a multipanel moonroof, leather interior, power tilt/telescoping steering wheel with memory, illuminated entry system and adaptive HID headlamps.

There has also been a reduction on the RX 350's navigation system/Mark Levinson audio package. The package has been cut by $600 to $6,190. It includes a backup camera, an 11-speaker audio system and a Bluetooth hands-free phone system.

Lexus said the price for the front-wheel-drive 2007 RX 350 is $38,095, including a $695 destination charge. The price for the all-wheel-drive 2007 RX 350 is $39,495, including destination. The SUV is powered by a 3.5-liter V6 that gets 270 horsepower.
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PlanoA4 - 7/26/2006 10:27:05 AM

+3 Boost

First rule in "Premium Cars 101" NEVER reduce prices. It has a direct effect on resale, residuals and customer loyalty. It is far better to delay raising price to adjust the retail.

maxxm - 7/26/2006 12:29:54 PM

+2 Boost

That's absolutely correct. "Screw your previous buyer" is not the best philosophy to follow.

Neverfollow - 7/26/2006 2:02:24 PM

+2 Boost

Is Lexus getting a little nervous about a Q7 coming into the market starting at $39900? Maybe they should drop them a little more!

1970toyotamarc - 7/26/2006 2:07:39 PM

-1 Boost

Wow only on Autospies would price reductions get criticism. Lexus can afford these reductions as the cost of the 3.5L engine to build is less than the previous one. Shame on them for passing this on to the consumer!!! Maybe they chould just slap a $6000 discount on the hood like Lincoln would do.

PlanoA4 - 7/26/2006 2:13:37 PM

+2 Boost

1970toyotamarc - how would you fell if you bought a RX350 and the next week you saw you got screwed out of $2000 or $3000 total?

Leather by - $345
Perf Pkg - $940
Levinson Stereo - $600
Moon Roof - $900

Total screw over - $2785 or about $85 a month.

1970toyotamarc - 7/26/2006 3:18:15 PM

0 Boost

First, people dont buy every package.
Second, packages are bundles that save prices on purchasing individual options separately. Their whole point is to save you money, and packages change all the time.
Third, Your fuzzy math. Even if everyone did get every option at the new discounted rate I calculate it(on Lexus.com) to about $50 a month on payments of around $1000. wahhhhhh. I'd be more upset if I had bout an RX330, and now the upgraded engine came out. But that's life in the automotive world!!!

You are just so grasping for any way to criticize Toyota. It's so obvious and ridiculous.

JUGNU - 7/26/2006 4:33:35 PM

-2 Boost

Now if Lexus is getting insults on reducing their prices than the whole picture of the posters(IGNORANTS) is pretty clear.That how much ignorant/jeolous/close minded they r.

Neverfollow i think AUDI was afraid of the X5,ML and Cayenne thats why they had kept the prices of Q7 so low.Very near to the TOUREG.

I think it's Q7 who is getting nervous or afraid from the stiff competiton but not a CHAMPION LIKE LEXUS.
ESPECIALLY A BEST SELLER LIKE RX.

Stop spreading the crap.U IGNORANT

JUGNU

SixxFive - 7/26/2006 4:34:30 PM

+2 Boost

Sales must be down.....

kart1 - 7/26/2006 6:11:24 PM

+1 Boost

MSRP didn't go down, but the package prices did go down. I think sales were slowing down, but I don't know whether the package prices really matter that much on an advertising basis. They always display the MSRP and not the package prices so the real reason can be debated. What could it be?

flychronic - 7/26/2006 8:33:35 PM

+1 Boost

Plano A4:
first rule: never buy a car, always lease.
mromar:
All chinese mid age females LEASE their cars, so they don't give a crap about re-sale value, they are just waiting for the new model to come out when their lease is over.

00JT - 7/27/2006 4:28:09 AM

+1 Boost

The RX is being discounted anyways, it doesn't really matter that the price is being cut because the RX wasn't selling at full MSRP. The Q7 is not in the RX's class, it would be more competitive with the GX since it offers 3rd row.

PlanoA4 - 7/27/2006 10:08:03 AM

+1 Boost

flychronic- We lease one and own one. Lease is for my wife, I drive em till the wheels fall off.

The lowering of a price is the exact same as giving a rebate. The car is devaluated and your residuals on current and future models will drop because the avg selling price dropped. So the cost of ownership will go up on a lease or balloon note.

This is the exact issue why Domestics have low residuals, the constant discounting artificially lowers the retail price and in turn the residual drops and the car is worth less at the end of the term. The result? Your lease rate goes up. That is whty a BMW can lease for the same as a midline GM product. The BMW has a far better residual rate. (BMW has never rebated that I know of)

Now if you paid cash for every car and drove them forever you are better insulated. If you trade in every so often you get dinged at that time with a piss poor trade in value.

PlanoA4 - 7/27/2006 3:13:43 PM

+1 Boost

JUGNU - Man lay off the caffine. If don't like the viewpoint that is fine. Better yet, find proof of otherwise and start a new thread by a new submission. You are wasting your breath without any proof.

JeffLosAngeles - 7/27/2006 4:06:53 PM

+1 Boost

00JT, you are correct. They are just bringing the MSRP more inline with the sale price. It should be good for advertising though with a "hey look we have dropped the price campaign".

flychronic - 7/27/2006 6:38:00 PM

+1 Boost

PlanoA4- So the wife gets a new car every few years and you keep the same junk until the wheels fall off? Weird country we live in... I always thought it should be the other way around.

BMW530i - 7/27/2006 7:03:14 PM

+1 Boost

New models also affect price, often a reduction because the company wants to sell those models they have in stock. Is a new model for Lexus planned? I know the new LS must be coming soon, and the RX needs an update or a new version soon I suppose...

crackityjones - 7/27/2006 9:19:34 PM

+1 Boost

How in the world is a lower price causing all this bitching?

PlanoA4 - 7/27/2006 9:42:31 PM

+1 Boost

flychronic - Weird comments, you must be single or have an alternative lifestyle. The wife always wants a new car, I always modify mine and use them in sport competitions, leasing is not really good option there. I grew out of the gotta have the newest toy syndrome quite a few years back. Now I concentrate on kicking booty with a tuned machine, while those wannabe's drive a shiny new ride and wonder what happened. Just a matter of preference.

Funny how the younger we are we think we know it all. I bet 90% of the Lexus owners on this site have NEVER changed oil in a car much less worked on a brake system. Real drivers know the mechanics and how they correlate to speed. Paper tigers quote magazines and road tests. How easy they are to tell the difference.

MercBasher - 7/27/2006 10:20:32 PM

+1 Boost

I applaud lower prices and enhanced value whether it is Mercedes (lowering prices of the E Class in the mid 1990s) or Lexus, or BMW (adding content to the coupe).

The luxury market for autos/SUVs has been growing quickly, but now its becoming more competitive. This is good for consumers. Celebrate price reductions don't discourage them!

flychronic - 7/28/2006 4:42:04 PM

+1 Boost

PlanoA4, Actually I am married wih kids, I think you are the one with an alternative lifestyle, if you are into tuning, I think you're on the wrong website. This is related to new, existing updates on cars available in the market place. As far as your oil change theory if you are into manual labor, be my guest, I grew out of that in college. Paper tigers ???
You are the one quoting magazines all the time...I think you need a new car, maybe you are very bored...