Monday, November 23, 2009

Lexus Screws Dealer Markup and My Chance to Make Millions

In a calculated move that challenges the very idea of capitalism, the company will offer only two-year leases for the $375,000 two-seater, thereby keeping the pink slip in hand.  This comes straight from Brian Smith, vice president of sales and dealer development for Lexus division.

2 comments:

  1. Lexus brought one to Coffee and Cars this past Saturday. Done up in that flat black paint that seems to now have even made it to the Japanese. Personally, I don't understand the desire for the flat black paint job...most real car guys enjoy waxing a great car, but with this paint all you can do it keep the water spots off it.

    The LFA is a nice car in person, though this leasing business may not pan out for Lexus. What they haven't considered is that most of the playboys that can buy this type of flash car also have an attention span of about 6 months...So if they’re forced to hold onto their impulse buy for 2 years then they might not even walk into the dealership.

    Oh, and lets talk about the banks that have to provide the financing for 2 years. If Toyota Finance will even take the risk of the loan, they'll probably ask the nut-job buying the car to put half the cash into the bank to prove that he's good for it for 2 years. I seem to recall, back in the Internet boom, that a bunch of these hot shot webies lost their fortune over night...Can you image Lexus having to call "Operation Repo" to pickup their LFA's.

    Nice car but is it really worth leasing when you have cash to burn today?
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  2. Interesting point about qualifying and carrying those people on the lease. Lexus said they are going to lose money on everyone of these, so clearly they aren't concerned about upfront cash sales.
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