Are you in the market for a luxury SUV? You might be surprised to learn that Lexus RX sales are hitting record highs. In this post, we'll dive into the reasons behind this surge and offer valuable insights for potential buyers and leasers.

The Surprising Sales Figures

Contrary to what you might expect given current inventory levels, Lexus RX sales are booming. In 2019, Lexus sold 111,000 RXs. Last year, they managed to put a whopping 114,000 on the road. But why?

The Post-Pandemic Shift

After the pandemic, people developed a deeper appreciation for well-built, quality cars. Two brands stood out: Lexus and its parent company, Toyota. Interestingly, more people now recommend Lexus over Toyota.

How Lexus RX Compares to Competitors

Let's look at the 2023 sales figures for luxury SUVs:

• Lexus RX: 114,000

• BMW X5: 72,000

• Mercedes GLE: 55,000

• Acura MDX: 57,000

• Volvo XC90: 40,000

Inventory Insights

Lexus is holding fewer RXs in inventory compared to its rivals:

• Lexus RX: 5,500 (both gas and hybrid models)

• Mercedes GLE: 8,500

• Volvo XC90: 7,000

This lower inventory, coupled with high demand, is creating an interesting market dynamic.

Buying vs. Leasing: A Closer Look

Buying

If you're considering buying, aim for a discount of about 7% off the MSRP. For example, on a RX350h Premium priced at $56,310, you could target a final selling price of $52,368 before incentives.

Leasing

Lexus is offering some attractive lease deals, particularly on non-hybrid models:

• $4,000 lease cash on gas RX350s

• No lease cash on RX350h models

• 3-year, 12,000 miles/year lease:

  • RX350 Premium: 59% residual, 0.00250 money factor

  • RX350h Premium: 61% residual, 0.00265 money factor

Based on these figures and assuming a 7% discount, monthly payments could be:

• RX350: $624/month (not including tax)

• RX350h: $730/month (not including tax)

Used Lexus RX: Is It Worth Considering?

The used market for the previous body design (RX450h hybrid) is limited. A 3-year-old RX450h with under 40,000 miles typically goes for around $42,000, with many priced higher.

What's the Best Option?

Given the current market, buying a new RX350 hybrid and financing through a third-party bank could be the best choice. However, it's worth noting that the updated moderate overlap crash test results for the RX were disappointing, which might be a concern for safety-conscious buyers.

How to Get the Best Deal

When reaching out to Lexus dealers, be clear about what you want and your target price. Here's a sample email template:

Dear Lexus Manager,

I'm looking to purchase a new Lexus RX350h hybrid. I'm aiming for a price as close to $50,000 as possible. I have excellent credit and plan to finance, but I'll be checking rates with my own banks as well.

I'm ready to make a purchase between now and the new year if I find the right deal. How aggressively can you price this vehicle?

Looking forward to your response,
[Your Name]

Conclusion

The Lexus RX continues to dominate the luxury SUV market, with sales stronger than ever. Whether you're looking to buy or lease, understanding the current market dynamics and using the tips provided can help you secure the best possible deal.

Remember, the key is to do your research, be clear about what you want, and don't be afraid to negotiate. Happy car hunting!