Looking for $10k off on a Lexus or Caddy? High-priced hybrids reportedly getting hefty incentives
2009 Lexus LS 600h L Pebble Beach Edition - Click above for high-res image gallery
Surprise! Lexus and its parent company, Toyota, are apparently finding that it's not as easy selling $106,000 hybrids as it is for $25,000. The Lexus LS 600h L is certainly an excellent piece of automotive engineering, delivering gobs of horsepower and torque with at least a modicum of efficiency thrown in for good measure.
Still, sales of the LS range are down over 50%, leading the the Japanese auto giant to place a whopping $10,000 cash incentive on its range-topping hybrid model. Moving down the Lexus lineup a notch will net you a $3,000 incentive on the GS 450h. What's more, Edmunds' Auto Observer reports that the company is throwing another $1,000 at any Lexus sales associate that manages to sell one of its pricey hybrids.
Not into expensive hybrid sedans? How 'bout we move to the opposite end of the fuel-saving market and into the driver's seat of a 2009 Cadillac Escalade Hybrid. Signing on the dotted line for General Motors' top-of-the-line 2Mode hybrid 'ute will cost you from about $73,000 to over $87,000... minus a five-digit discount, of course. Such a deal!
Gallery: 2009 Pebble Beach Edition LS 600h L
[Source: Auto Observer]
Reader Comments (Page 1 of 2)
Driver X 7:35PM (10/05/2009)
Most buyers would rather have a fuel efficient Diesel.
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jv2k 10:21PM (10/05/2009)
In america? LOL no.
Tool 10:46PM (10/05/2009)
The handful of rich pricks who had to look like green posers have already purchased the over-priced Lexus LS 600h L, so its no wonder they aren't selling.
Luis 9:20AM (10/06/2009)
@Tool - All models in that range end up with huge sales declines a year or two after the model is introduced. It happens all the time. And why are they pricks? Just because they have the money and bought a $100k car? The profits on those cars helps fuel innovations that eventually make it to the lowly Corolla, so be careful who you call a prick.
seanleeforever 12:24PM (10/06/2009)
what car do you guys drive? i wonder.
10k off sounds like a huge discount for a civic, no doubt about it. But when you talking about 60k+ cars, especially American cars, knock off 10 to 15k is norm. Don't take my word for it, head to your local benz dealer (not in your civic, of course), you will see their are ALWAYS some sort of events going on and you have no trouble getting 10k off without even asking for it. Not to long ago, the previous gen E class, which was a 45k car, was discounted by at least 8k without any effort. Just a year ago, those 30k~40k American SUVs was all at 60% off. and don't let me start with BMW diesel discounts (too bad their sales are bad even with those discounts, but who buys BMW anyways, their lease deals is too good to pass).
point is, and some of your Lexus hater will always fail to realize, Lexus give the LOWEST amount of discount among major luxury car manufacturers (50% lower than the next closest German competitor), Year after Year. those data can be found at Edmunds. which implies Lexus actually has a pretty good resale value because their price are firm.
eye.surgeon 7:58PM (10/05/2009)
What a surprise, buyers outside of Hollywood aren't willing to pay a $10k premium for a "green" car.
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click_playaz 7:58PM (10/05/2009)
Lexus Hybrid doesn't work on me( expensive, aim on more HP, and torque), I'd choose Toyota if I want a Japanese hybrid. I'd choose IS-F rather than spend $100000+ on a luxury hybrid.
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the4thheat 9:34PM (10/05/2009)
The LS and IS aren't even vaguely similar cars other than the fact that the LS600h and IS-F share a V8.
At any rate the LS600h is still mostly going to be a six figure car even with the $10K off since it seems bizarre to drop this kind of money and not even get at least the premium package. Not really surprised that it's not selling like hotcakes though...doubt anything that costs this much is selling lol.
Kristovar 7:59PM (10/05/2009)
I must say, I've never seen an Escalade Hybrid, and I live in Texas, where I cannot go a day without seeing at least a dozen Escalades. I see quite a few of the Tahoe and Yukon Hybrids, however. I guess the very rich, aside from the California elite don't care for fuel efficiency?
For $106K I couldn't imagine buying a brand new vehicle that didn't have the letter and number combination of ZR-1.
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Tourian 9:43AM (10/06/2009)
If you take the vinyl off an Escalade Hybrid it is very hard to distinguish it from a regular Escalade. It uses the same wheels and bumpers and roof racks as the normal Escalade unlike the Tahoe Hybrid does which makes it easier to distinguish. The little green hybrid symbols are the only thing some people leave behind.
mikemaj82 8:01PM (10/05/2009)
people buy hybrids to save money on gas. obviously if you can afford a $100,000 car, you're not worrying about gas prices. what's the point here?
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StickShift 9:29PM (10/05/2009)
The Escalade is all about being seen, making a splash, and showing how rich you are. I think that's too much flash for the average rich, trendy movie star type to show they're 'green' cred with.
eye.surgeon 9:37PM (10/05/2009)
You can't be serious. The return on investment for buying a hybrid, even a cheap hybrid, is like 6+ years before the amount you save on gas equals what you saved on gas. People buy these to feel good about themselves.
Vik 2:01PM (10/07/2009)
People don't just buy hybrids to save money/gas. They buy them as 1) political statements i.e. they prefer to send as little money as possible to governments in the mideast that oppress women/their people/support terrorists abroad and 2) provide support to manufacturers who are developing and producing vehicles that use fuel other than gas.
On that second point, the idea is that company's will begin to see that more consumer dollars are going towards hybrids which will in turn cause other companies to develop hybrid technologies.
Kristovar 8:03PM (10/05/2009)
And yes, I'm well aware that these are vying for ENTIRELY different markets. So let's throw in the new XJ Supersport, which won't be full of the pollutant batteries of a massive hybrid ala the 600L.
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High 8:10PM (10/05/2009)
Is that not the most beautiful thing you've ever seen, or is that not the most beautiful thing you've ever seen? Man what I would do to that thing given some alone time.
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TigerMil 9:47PM (10/05/2009)
U gotta be insane to buy ANY hybrid. Do the math...it's simply not cost effective to pay the cost premium vs buying a TDI Jetta or somesuch. Besides, the smug coming out the hybrid tailpipe is enough to choke San Fran...as if.
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chad.dawkins 11:43PM (10/05/2009)
Yes, people who buy a $80,000 Escalade Hybrid or a $110,000 Lexus are worried about the fuel savings of the hybrid. They buy it because of the green image and in the case of the Lexus it's the most expensive. Yes there are people who buy high end vehicles(this goes for M3s and AMGs) just because they cost more than the others.
Clavius 9:59PM (10/05/2009)
Wow.. just looked up the spec's on this car and compared it to the normal LS and again WOW! So for 40k more over the top line LS all you get is 2 miles mpg less on hwy and 4 mpg more in the city?! oh but its a hybrid so the person will look good with his neighbors, Buffy and Clyde and their dog Fifi.
Still can't believe it though.. 100k for a Lexus Hybrid!!! Now if it got 40mpg ok but for only about 24mpg thats just yeah.. again wow!
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chad.dawkins 11:44PM (10/05/2009)
It also has like 70 more HP and the LED headlights(which are about $5K alone). Remember the hybrid line in Lexus(aside from the HS and IS) is basically a performance line.