Demographics, marketing, and public perception don’t play nicely together very often. Consider, if you will, the oft-repeated factoid that the GMC Yukon Denali customer base is better-educated and earns more income, on the average, that the equivalent Cadillac Escalade customer. The same was reportedly true for the previous generations of the Toyota Land Cruiser and Lexus LS400, respectively. People who are habituated to weath and success tend to be remarkably resistant to lifestyle marketing, celebrity tie-ins, and marble tiles on showroom floors.
The rather handsome little five-door you see above is, of course, a Lexus CT200h, which is more or less a Lexus Prius. There is a sported-up version of the CT200h, called the “CT200h F Sport”, and there is a sported-up version of that, yclept “CT200h F Sport Special Edition”, or “CTFSSE” for short. It rings the cash register for $37,995, and represents the very apex of Lexus compact hybrid ownership. It’s also $1,530 cheaper than the apex of Toyota compact hybrid ownership, the Prius Plug-In Advanced, which costs $39,525.
Which brand — Toyota, Lexus, or Prius — is the real premier entry into this market?
Yes, Virginia, there is a Lexus enthusiasts’ club, and they have a website. This is the kind of thing that makes me laugh long and hard at the ridiculousness of having a “lifestyle” built around owning rank imitations of other people’s designs, right up to the point that I remember that I am part of a owners’ club for Matsumoku Japanese guitars from the Seventies and Eighties. Oops. I suppose I should let someone else carry the water for that particular disdainful opinion.
When Lexus sent me an e-mail “blast” about there being CTFSes and CTFSSEs available at my local dealer for purchase, I decided to see if anybody had reviewed said CTFSSE yet, and I found this very interesting report from an early adopter. This fellow is a Lexus enthusiast. Seriously. I mean, he’s totally invested in the brand. He knew that the CTFSSE was coming. He made sure he got the first one off the truck. For the benefit of his forum friends, he details everything from the way the wheels look (awesome!) to whether or not a full-sized iPad works with the entertainment interface (kinda!). He photographs the CTFSSE with another icon of Lexus enthusiasm, the IS-F. He photographs the car with an IS F-Sport as well. We’ll refer to the IS F Sport here as the ISFS. The IS is very important to Lexus enthusiasts, primarily because it’s the only Lexus which has ever pretended to offer anything like an involving operation experience.
As I read the four pages of enthusiastic, informed, interaction between this buyer and his online friends, I realized that they were completely failing to discuss one aspect of the CTFSSE. Any guesses as to what that was?
You got it. Economy. Fuel economy didn’t get a look in. I didn’t get the impression that anybody really cared about it. Compare that to the discussions at PriusChat:
- My hypermiling experiences during a recent “track day”, observations regarding cost of rear bumper repair, replacement of front teeth in this fascist capitalist economy
- Drafting trucks — is six inches too close, or should I go to four in order to save the planet?
- Has anybody here ever purchased so-called “fast food”? What about non-sustainable condoms?
You get the idea. As far as I can tell, while Prius enthusiasm is mostly driven by the social aspects of owning a vehicle known for fuel efficiency, CT, CTFS, and CTFSSE enthusiasm is all based around the idea that this is pretty much the cheapest Lexus. If the CTFSSSE had the IS350’s V-6 and got fourteen miles per gallon in the city, I suspect a lot of these people would be quite positive about that change.
The CTFSSE represents an eight-grand upcharge over the CT, and a six-grand upcharge over the CTFS, pictured below:
For that reason, they are likely to be a tough sell to all but the most committed of ClubLexus types. I thought the CTFSSE might be a good car for my thoroughly evil life partner, Vodka McBigbra, so I showed her a picture of one.
“That’s nice,” she said. “I could drive that if it had a trunky thing at the end.” On a hunch/suspicion/whim, I then showed her a picture of a Kia Rio.
“What do you think of this?” I inquired, quite innocently.
“It looks better in that color,” she replied. I haven’t saved twenty-four grand that easily since I declined to check the “W12” box on my first Phaeton. Back to the CTFSSE. It’s gonna be a tough sell.
You know what won’t be a tough sell? The nearly $40K Prius Plug-in Advanced. I confidently predict they will be sold out at Toyota dealerships for years. While the average CT owner probably doesn’t stay up late at night dreaming of a CTFSSE, the average ’07 Prius owner would murder to have a Plug-In, and many of them can easily afford it. Look for the Plug-In Advanced to have a cash-to-finance-purchase ratio that would shame Rolls-Royce. The demographics for this will shame those of the CT, the CTFS, the CTFSSE, the ISFS, the IS-F, the LS460, or, whisper it…
…the LS600hl. And the education/class aspects of it? Here’s a hint: if you have just one rock available to you and you want to make sure it strikes a published author, wait for the day the Plug-Ins arrive at a New York-area Toyota dealer and just chuck it into the crowd. The beautiful people on both costs will flock to this thing in exactly the manner in which they’ve studiously avoided the Volt.
This is all good news for Toyota, and if they weren’t aware of the phenomenon they wouldn’t be working so hard to make “Prius” a plural noun and expand the brand, but what else could they, or anyone else, learn from this? Here are a few things that come to my mind:
- It’s important to be first. I couldn’t tell you how many times I’ve heard the Volt and/or Leaf derided as “Prius knock-offs”, both from people who have no reason to know better and people who do. Get the product out there, get it out first, and make sure it’s right. Repeated decisions to ignore this principle are probably responsible for at least half of GM’s market-share losses in the past forty years.
- Prestige marketing is changing. No, wait. It’s committing suicide. Fifty years ago, the brushed-nickel opulence of a Cadillac suited the upper-middle class as nicely as a set of cordovan Alden closed-lace shoes, but those days are over. Today’s fiscally-mobile class announces itself not with the dulcet tones of a Social Register listing but the aggressive, in-your-face, look-at-us-being-happy crassness of a “Life Is Good” shirt. The Prius Plug-In sends the same message as that Life Is Good crap: I’m successful, and I’m so down to earth and happy about the whole thing. Neal Stephenson had it right. In this country, in this century, the poor and powerless look angry and tough while the wealthy and manipulative cultviate the studied gormlessness of a Hello Kitty poster. Cadillac, Lincoln, and Lexus will fail to understand that at their peril.
- You’d better understand why people are really buying your product and make sound decisions. The CT200h would be much better off as a CT250 V-6. Nobody cares about the fact that the littlest Lexus is a hybrid. They just want a cheap Lexus, preferably a Euro hatchy thing so they can keep pace with their Audi A3-owning friends. By contrast, Toyota doesn’t do enough to differentiate the Camry and Highlander Hybrids. If they made it more plain that those products were hybrids — and not in the dumb-assed Escalade Hybrid doorsill sticker way, but a sharp, snazzy, Sonata Hybrid way — they’d sell better and for more money.
Consumption is changing. I repeat. Consumption is changing. Here’s a question for you. Why is everybody a “foodie” all of a sudden? Got any ideas? I will tell you why: it’s because the only God-dammed thing that you can legitimately brag about in any upscale party nowadays is how much you’re spending on food. If you’re trying to impress a woman in Manhattan or Newport Beach, don’t talk about your $295,000 Ferrari F430. She’ll think you’re a douchebag, a braggart, and a solid candidate for surgical penis augmentation. If, on the other hand, you talk about how you’re spending $500 a week on food, she will get the message — you’re stacking bank — and approve on multiple fronts. It’s conspicuous consumption, redefined.
The CTFSSE might raise eyebrows among secretaries and dental hygenists everywhere, but if you’re interesting in dropping the fair-traded panties of your Smith-educated local localvores, the Plug-In Advanced is simply unbeatable. That’s why it will sell in numbers that eclipse the littlest Lexus, and that’s why it, not the CTFFSE, is the real upscale hybrid choice.
What I have noticed in my area, which is one of the wealthist zips in the Boston area, is:
Acura
Audi
BMW
MBZ
Toyota
Honda
Lexus
Volvo
Range Rover
In my area, homes start in the low 1Ms and top out in the 4Ms. The above brands account for nearly all of the cars parked in the driveways. Often, some of the biggest homes have low priced Toyota and Honda vehicles parked outside, while the cheaper homes in the low 1M range have the high end foreign stuff, like the Range. Go figure.
As for myself, I always buy the lowest end base model Toyota and Honda, then trade them in after 24 months on another cheapo. However, I do have a 12 TL, but it is the lowest price FWD model. What was I thinking?
Nah – it is the FISKER!
We’ve all gotten Fisked for half a billion dollars.
That’s the top hybrid!
The car in the driveway belong to the housekeeper/au pair/butler.
You need to look in the garage.
One more comment. Also being a resident in the Corona Del Mar section of Newport Beach, CA, where 2M is the bottom of the cheap homes, people are too snob for Toyota and Honda. Only German counts in Newport Beach. But, I drive Toyota and Honda there also. Problem is, in Newport Beach, Toyota and Honda attract attention by the local police late at night because they don’t fit … they are too cheap. I was thinking of an Acura or Lexus to avoid that problem. You would never catch me in an Alpina BMW just to make my next door neighbor happy. My neighbor has one of those, and I have seen the wrecker pick it up more than once for repair. It is only 2 years old. Ouch.
Who cares? they’re all poseur vehicles anyways. What’s the hybrid market share – 1% ? And wealthy people buying them – what a friggin joke. Stupid vehicles are more energy wasteful, especially in production, than regular cars.
I see neighbors that go on vacation, proud of their Toyota Prius, leave their air conditioning running on their massive estate, while they are saving gas. I think the Prius has nothing to do with saving gas and everything to do with image. Someone who really cares about gas usage tend to go for the Camry Hybrid. No image here, just mileage.
“I think the Prius has nothing to do with saving gas and everything to do with image.”
You do realize that most Prii are sold to people who do NOT live in neighborhoods of $1-4M homes? Maybe in your atypical neighborhood the Prius is about image, but for most buyers I am willing to bet saving gas is an important consideration.
jj99, air conditioning is needed to keep the interior of the house in good condition, especially items such as aged oil paintings.
I doubt I am fiscally mobile as I have a humble inland zip code. But I do work on the Irvine/Newport border and can attest that a Mercedes is truly a “Newport Nissan.” This is slowly moving to Audi the past 5 years or so. It is true that the Prius seems to be the only non-premium model to make inroads. I’ll have to try the foodie thing at the next shindig I get invited to, it is my largest monthly expense.
But where’s the review of the car? Although I suspect Jack Baruth hypermiling is an oxymoron, I was expecting to read about Jack B. squeezing an extra 2 mpg drafting a tractor-trailer or some other shenanigans.
I have yet to spot a CT200H in the wild here in the prairies, not surprisingly. I am curious as to it’s driving dynamics and efficiency in the bitter prairie cold, though.
Doctors and lawyers in the ’50s and ’60s would get Buicks and Oldsmobiles, instead of flashier Cadillacs, so the Denali vs. Escalade anecdote is nothing new. Hybrids now are what European cars like Mercedes, BMWs, Volvos and Saabs were in the ’70s and ’80s, a sign to the owners’ peers that they get it and are up to date.
The problem with luxury brand hybrids like the CT200h is that the kind of yearly mileage that justifies a hybrid is incompatible with leasing.
Wow, this just blew my mind. This is hands down my favorite automotive article written since the dawn of the automotive blog. Thank you!!!
CT200h ha gotta be the worst vehicle Lexus sells — driving dynamics are miserable and it rides like a low rider — horrible.
If they want to market this thing as a pseudo sporty vehicle, Lexus is going to have to do far better.
It’s like you never knew the HS250h existed. Oh wait almost nobody knows it does.
Most reviews of its handling were surprisingly positive. It’s just slow.
If Lexus wants to market this thing as a sporty vehicle, then maybe they should make it so that it won’t get dusted at a stoplight by a bicycle messenger.
Very insightful, Jack. Great analysis.
Just one quibble: cordovan Aldens will NEVER go out of style, at least not in my house. I had my eyes on a pair for 20 years, never believing I was worth the 5 bills they cost. Finally a month ago I spent part of my bonus on a pair, and they are the only shoes I’ve worn since.
Perhaps “out of fashion” is a better description. When I go to the airport, I watch my horsehide eternity machines roll through the Rapiscan surrounded by Chinese garbage and square-toed Euro-monstrosities.
Really. Brilliant. I’m close to telling my non car loving friends to read Baruth. Way to take a completely uninteresting premise and make it interesting.
I disagree on a couple of points.
1. The Prius appeals just as much to middle class working folks because of its unparalleled packaging of space, features and efficiency as it does to rich, would-be luxury drivers. Prius has those buyers too, but the car appeals to just plain old sedan drivers looking for something better than Camrys and Malibus. The Plug-In Prius is still marketed to thise folks, plus some early adopters. Toyota has said that Prius will always be at the cutting edge of their technology, so early adopters will also always be a target. But the bread and butter of 150,000 sales a year will be customers right down the middle of the road. Lexus is not for them, they likely don’t even consider it. That’s why Toyota can sell Avalons and Lexus can sell ES350s. Different buyers. Toyota wants them to be different buyers. The unadorned Camty Hybrid is for those buyers to, just a great efficient sedan.
2. Lexus has to have luxury hybrids. It’s kinda their niche now. They wouldn’t sell a single CT if it was just a CT250. Then it’s just a cheap Lexus. Your contention is that people want a cheap Lexus, as if that’s what they look to Lexus for. It’s a cheap shot at Lexus, common on the Autoblognets, that that Lexus sells to the masses who can’t afford better luxury makes. No, what Lexus is selling is the luxury green machines. And the CT special editions proves you can lux these greenies out to the max. And why not? The Lexus buyer wants luxury, number one. What the CT and other Lexus hybrids say is that Lexus’s pitch isn’t just cheap. (The A3, A Klasse, 1er and C30 can have that niche.) It’s also not pocket rocket. (The 1M can have that.) It’s green luxury. That’s why they HAVE to sell the CT200h, and hopefully next year the CT300h.
Luxury hybrids like this are what’s blowing Lexus’ image (such as it was) clear to hell. And for this car, I really should have put the first word in the first sentence in quotation marks.
michaelhagerty, it’s all relative. Yes, the CT is not very luxurious. But neither is MB B-class, or Audi A1 (if there is one). I will pick CT over B200, if they are the only choices.
Lexus in the UK has become a hybrid only brand since they have been unable to compete (in terms of sales) with the established luxury brands. Some of that technology is over here, but Lexus will continue with gasoline engines here since they are somewhat more successful in the US than Europe.
The Prius is undoubtedly the real upscale hybrid choice. If the Lexus would have hit the market first, then we’d be having a VERY different conversation.
GM tried to emulate the formula by making the Volt a Chevy first, and that’s going to back fire. If it were a Cadillac, it would have probably sold better.
yeah, i’ll agree wit ya. erbody movin away from da tradicional status symbols once da “poor ppl” start adopting them so rich ppl gotta move on to smth new.
we went over it in my california politics class. rich ppl went skiing and it became the new “thing” cuz having vacation time and expensive hobbies meant you had a lot of free leisure time aka not needing to work. after the industrial revolution, tangible stuff became less of a distinguishing factor for rich vs. poor ppl. just look at how many poor ppl lease bmw’s and wear fake LVs. now rich ppl brag about their interests and hobbies with SUVs, diver watches, “north face” jackets, weird electric unicycles, organic food, etc. the items aren’t flashy but they symbolize a life of leisure and hobbies that poor ppl can’t have cuz dey gotta work that 9 ta 5. my neighbor is a millionaire and he drives a corolla but it’s always super clean and waxed, spending hundreds of bucks a year on it (thats not frugal). my coworker makes 15 bucks an hour and drives a cadillac. traditional luxury symbols are out, new ones are in, and da new symbols aint about flash its about lifestyle, mang. poor ppl always try to imitate rich ppl n rich ppl r always trying to distinguish themselves from poor ppl. its a vicious cycle mang. i typed a lot o i am on adderall.
peace.
ever read the Freakonomics bit on high end names and low end names and the predicable cycling back and forth?
Loving this comment.
Dude, keep commenting here, seriously! When I saw the big block of text i didn’t think i’d make it through your comment, but your points are solid and entertaining.
I find brand positioning to be fascinating. I also see much parallel in the fashion industry.
The real money to be made is in the prestige mass market (I.e. masstige), where you’ll find brands that cater to fickle teenagers and 20-something’s. No one wants to admit they’re being marketed to, but they’re receptive to owning goods that projects their lifestyle and outlook.
So luxury brands have 3 options:
You can be all things to all people, sort of like a Lands End, Marks and Spencer, Tommy Hilfiger, or Nordstrom’s and hope that if it’s expensive, better quality, or a premium sales experience it’ll sell. Sort of what BMW, Audi, Lexus, Cadillac and Porsche have become. It opens the door to brand dilution, but highly profitable in the short run.
Second, you can stay focused on a single narrowly defined market that doesn’t try to target other lifestyles. Think stodgy brands like Allen Edmonds, Brooks Brothers, Canali, Orvis, or automotive brands like Jaguar, Land Rover, Jeep, Lotus, or Bentley. Growth is not in these brands’ futures, but they benefit from strong brand identity and immunity to trends.
Finally, develop a mass market sub-label like Hugo Boss Green, Versace V2, Armani X, or Zegna Sport so you develop street cred without diluting your core high margin premium product. I already see that in Mercedes, where there’s the real Mercedes (S, SL, CL), the sport brand (AMG), and everything else. This raises the cost of marketing, but it’s easy to ditch a failed product launch or raise profitability by increasing volume if it’s successful. It’s not risk free, as the contrast between Mini and Smart demonstrates.
Of course, the people with money are not teenagers and 20 somethings. So they’ll have to make due with their iPhones, designer jeans, and Bench jacket. I’ll take my LS600hL in pearl white please.
“automotive brands like Jaguar, Land Rover, Jeep, Lotus, or Bentley. Growth is not in these brands’ futures, but they benefit from strong brand identity and immunity to trends.”
I don’t know about Lotus, but none of Jaguar, Land Rover, and Bentley could survive on its own, and had to be sold to a foreign company (multiple times).
Now that you mention it, I can’t think of many luxury fashion brands that are profitable enough to stay independent. Outside of LVMH, Richemont, Swatch Group or PPR, there aren’t very many brands that can survive alone. Even luxury goods benefit from economies of scale. I guess that’s the price for strategy #2.
Jack,
That “LexusPursuit” email hit my inbox yesterday as well. I have a good laugh. Please ask someone to explain why Lexus put a pair of F Sport suspensions on CT and badged it “F Sport”. It is laughable considering CT manages to do 0-60 in 9.8 sec. On the other hand, badge whores worldwide will rejoice.
0-60 is for the countryside, and could be useless for big cities. Even the MB S class can be had with a 2.5L 204hp engine in certain areas.
No offense, CT is horrible on interstate. Lexus is shooting itself on the foot by badging it “F Sport”. This vehicle is incomparable to IS-F. When did you ever witness a S-line, AMG or M-badged vehicle take more than 9.8 sec to do 0-60 mph. F Sprot CT is an oxymoron.
wallstreet – F sport is much like BMW’s M sport packages. You get different interior bits, different exterior bits, and different suspension. You could buy a BMW 328i sport wagon M sport that was just a sharper looking, sharper handling version of the 328i sport wagon. The IS-F is like the M3. Those are full on versions of the cars that are upgraded in every way (non just appearance and position). Again, this isn’t a CT-F. That would be an F version of the CT like the IS-F is an F version of the IS. It is just a CT200h w/ F-sport package. Oh yeah, Mercedes and Audi put AMG and S badges on appearance packages as well. You can get an A4 S-Line that got darker wheels, sportier interior, etc. I’ve seen loads of E350 or C350 models with AMG badged wheels.
My understanding is that the FFSE ticks the option boxes for premium, f sport, navigation, and leather, so when considering that, it really is an extra $1k or so for some luggage, a different set of wheels, and a different material on the insert of the seats. I wouldn’t get the Nav anyway, but the standard F sport gets suspension upgrades, a blacked out interior, and a few other nice things for $1k over the regular model.
My wife and I test drove a CT about a month ago. It was the standard model with navigation. I took it on some WV back roads and it handled every bit as well as the MKV GTI I sold last summer. It obviously doesn’t have the dynamics of an MX-5 or S2k, but it is very pleasing to drive if your into sporty handling. Visibility could be better. Power was completely adequate considering we’re looking for something that gets 45 or so mpg. Around town it felt quite punchy. I didn’t get to take it out on the interstate, though. I imagine it isn’t as pleasant. Anyway, my wife really likes the car because the interior is quite nice and the seats are excellent. I’m pushing for the bigger, more efficient, less expensive Prius, but it would be her car. We’ll also test drive the Prius v when it comes out, too. My biggest complaint, hands down, about the CT is that it isn’t particularly roomy in the back seats. We’re coming from a MINI, so it is still quite an improvement.
BTW, there isn’t a Lexus model that we’d consider buying other than the CT. I’m a lover of hatches and I think the CT, while not being cheap, does manage to be a nice car while being relatively practical, relatively inexpensive, and quite efficient. There isn’t a lot out there that ticks all those boxes. This is where everyone rants and raves about how nice the Focus and Cruze are and how they are so much cheaper. I don’t see myself getting into either of those cars in 7 years and still being happy with the purchase. Our MINI has completed that feat and I expect our next vehicle to do the same.
So, did you and your spouse test drive a Focus Titanium hatch . . . just for grins? Or did that “Its just a Ford” thing stand in the way?
We did not test drive. First, we are planning on a hybrid of some sort due to city miles* and, second, neither of us particularly liked the overwrought interior of the Focus. Just personal preference.
*The fact that it will still be getting 40mpg while she’s slogging through school traffic in the morning on her way home from work, instead of 28mpg, is certainly a bonus for a hybrid over a . She gets around 28mpg out of her MINI in the same traffic. I don’t expect the Focus would be much better. I do realize that the cost difference will never be made up by the gas savings, but it will keep her happier in the same car much longer. Buying a car that only satisfies the math side of the brain is a recipe for a quick trade-in and finally buying a car that she does like.
Fair enough, they are finally offering leather and such other fancy touches…but yes, it’s still an Impreza.
Gotta make the wife happy if she is the one primarily driving. Mine had a Tribeca while the Outback was in for it’s 60k service…loved it, primarily the sunroof and dual climate control, and bigger engine. Ugh, don’t want a crossover…can get those features in an Outback.
Wait and check out the new Impreza as well. May not get 45mpg, but 36 ain’t bad either.
I had 2 GC Imprezas before my GTI and 4Runner. They are certainly near and dear to my heart. I will probably test drive it, but I don’t know that my wife is interested. She was never fond of my old ones. She wants something relatively luxurious inside and I don’t know that the Impreza will deliver.
Always worth a shot, you can finally get leather in them. But you gotta make the wife happy if she is the one primarily driving.
I’ve spent some time on the CT forums and while I agree that the cheapness is part of it’s appeal to the owners I think that they do care that it has good fuel economy. They’re not obsessive about it like the Prius owner-after all it’s giving up a few mpgs-but the people buying it as a commuter car (or often a car for their spouse) buy it because it has “good fuel economy” and a nice interior and ride. Sure this could have been accomplished via somewhat more conventional means but definitely not by putting a V6 under the hood.
What the CT really needs is a slightly more aggressively tuned version of the new Camry Hybrid’s powertrain instead of using the Prius’ powertrain. And I suspect that it’s coming as the CT300h.
One very important thing that enthusiasts forget how important is quality of the service to the average car owner. Luxury car owners are even more demanding. And this is where Lexus really shines over its competitiors. It’s easy to make jokes about the CT in this enthusiasts forum (by people who havent even driven the car), but I have driven the CT for couple of days. I have to agree with Quentin that handling of CT is at least on the same level with Golf GTI, seats and seating position are one of the best I’ve experienced, and interior materials/fit and finish are class leading. Up to 60mph the acceleration is more than adequate. Only thing the car lacks is proper power for highway passing manuveurs. Ideally Lexus could turbocharge the 1.8 engine to give it overall power around 180hp – then CT would be perfect. But I dont know if its possible with Atkinson cycle engine and hybrid system.
The only reason the CT exists at all is because it’s necessary for Lexus to get any traction in Europe. The only reason it’s available in North America is to rationalize production as Europeans aren’t buying many of them. It would probably cost Toyota more to not sell them here.
Otherwise, yes, the brand positioning is silly. Of course the B-Class is equally silly, Audi sells Golfs (and in Europe, Polos) with compromised headroom, and BMW is planning a non-Mini front-driver, so on-balance Lexus isn’t doing to badly, here.
I’m personally surprised Lexus doesn’t make a hybrid ES.
Agreed. Given that there’s a Camry hybrid, an ES should be no sweat, and it’s intended buyers would probably find the mileage improvement fairly appealing. In fact, a hybrid might put the ES on the shopping lists of people who otherwise wouldn’t consider the ES or Lexus.
Great read, Jack! One of your best . . . and that’s saying something. I suppose the sum of it is that a “car” is a bundle of tangible and intangible “stuff.”
The tangible stuff is the physical characteristics of the car: size, appearance, fit and finish, driving quality, etc.
The intangible stuff is the “style” (can you say, “MINI”?), the brand cachet (can you say “BMW”?), the demographic of the owner base, and the dealer experience.
I remember visiting one of my very successful classmates last spring, who lives in Atherton, CA and drives a Quattroporte. I had a Chrysler 300 “Limited” rental. As we were driving somewhere in my car (somewhat more pleasant because both of us are 6’4″) I commented that, if Chrysler could get rid of the cheap plastics on the door and dash and do a little bit better in the engine department than the 3.5L V-6 (not necessarily the stonkin’ hemi V-8), I could see myself owning this car. It drove competently, it was quite comfortable for 4 tall people (a test his Masur absolutely fails).
From his reaction, you would have thought I had farted during the “prayer of humble access” at church. . . and this is a guy whose dad was a European immigrant who worked union all his life and who, himself, once owned a green V-8 1956 Plymouth with dual exhausts and moon hubcabs.
I love the guy to death; he’s a prince of a guy and a great friend. But culturally, you can see he’s “gone to the dark side.” ;-)
Bruce: Was your 300 rental a 2011 or one of the previous-gen 300s?
My comment has less to do with hybrids and more to do with the desire to have the cheapest car from a luxury line:
What about buying a Japanese luxury brand used? Two of my used cars have been Acuras, I know they’re not at the same level as Lexus but they Honda still makes them into a nice vehicle. The first was an Integra, so that doesn’t count as luxury.
I didn’t buy my 98 TL because it was a “luxury” brand; but because it had a nice big V6, smooth ride with decent handling, good leather/carpet/plastic materials, great climate control, and heated mirrors/seats. A few items which I appreciate. I know Cadillac is about bling now, but I wouldn’t mind picking up a CTS sedan or wagon in a few years…it’s a quality vehicle with high depreciation. Perfect for someone who enjoys a well built vehicle (one of the rare GeMs right now) and it’ll last for some time. It’s heavy because it’s well built.
At 138k miles, I’ve grown quite attached to the Acura. Everything operates perfectly on it, and maintenance costs are very low (except fuel, at an average 20mpg mixed driving).
I see several entry-level luxury cars as a great value once depreciated. You get a good reliable vehicle with higher-quality components. Yeah, you can get a loaded out Hyundai or Mazda with all the same features as a Lexus…but those components in the Lexus will make it to 150-200k without breaking or becoming brittle.
All very insightful commentary on pseudo-luxury automotive brands and the recent economic unpleasantness, Jack.
But the real reason these will be sold out into the foreseeable future (in California, anyway) is that by picking up one of these babies you can get back into Diamond “carpool” lanes solo. It’s back to the good old days of picking up on that golden state commuter subsidy, and best of all, without having to deal with the proles in those non-plug-in Prii (recently kicked out of the diamond lane by expiring state legislation) clogging things up.
“…but a sharp, snazzy, Sonata Hybrid way — they’d sell better and for more money.”
A few things wrong with that statement….
IS-F the only involving Lexus? I’d almost put it second to the original IS300. That car was Lexus’ Integra moment… a half-decent compact sport sedan utterly misplaced with an upscale badge.
I forgot about that one. What a beauty.