Cheapest to most expensive: In which country do you pay nearly 5 times the retail price for a Lexus RX 450h?
I'll be darned if this isn't a quick money making scheme. It turns out that prices for a Lexus isn't about the same wherever in the world you go: The variance is so huge that from one country to another, you could end up paying nearly 5 times the price for the same car. Which country am I talking about?
Previously, I did a price comparison for the Lexus NX 300h in 10 countries, and found out that if you live in Singapore, you have to fork out four times the asking price Canadians pay!
This time round, a price comparison was made for the Lexus RX 450h. This vehicle has been completely redesigned from the ground up for 2016. Replacing the smooth, flowy curves in the previous RX is an entirely new aesthetic flair chiselled from a metaphoric block of steel. The end result is a new vehicle determined to reinstate the Lexus RX's market dominance with angular sophistication and muscular boldness.
An Atkinson cycle 3.5-litre V6 gives the Lexus RX 450h its momentum. Mated to electric assist motors, regenerative brakes that recharges the vehicle's battery pack and an 8-speed automatic transmission, this mill produces 308 bhp and a 0-60mph time of 7.7 seconds.
So why the need to compare the prices for the Lexus RX 450h? Firstly, it is expected to be a huge seller for Lexus, especially in the American continent, so it's an important model to consider and understand from an economics point of view. And secondly, in the Lexus NX 300h price comparison article before, I didn't include the Middle East, where gasoline prices are about as cheap as they are Stateside; for this comparison, countries in the United Arab Emirates should be included. At the same time, prices in Asia, as we saw last time, could yield some interesting results - and I didn't want to omit those either. This time round, though, Singapore couldn't be included. The Lexus RX 450h isn't officially sold there, so for this price comparison exercise, Singapore sits it out.
Altogether, to accommodate the Middle Eastern countries whilst having to retain a similar basket of countries as before, the price comparison has now been extended from 10 to 12 countries. For these two reasons, we need a price comparison for the Lexus RX 450h.
I'll be darned if this isn't a quick money making scheme. It turns out that prices for a Lexus isn't about the same wherever in the world you go: The variance is so huge that from one country to another, you could end up paying nearly 5 times the price for the same car. Which country am I talking about?
Previously, I did a price comparison for the Lexus NX 300h in 10 countries, and found out that if you live in Singapore, you have to fork out four times the asking price Canadians pay!
An Atkinson cycle 3.5-litre V6 gives the Lexus RX 450h its momentum. Mated to electric assist motors, regenerative brakes that recharges the vehicle's battery pack and an 8-speed automatic transmission, this mill produces 308 bhp and a 0-60mph time of 7.7 seconds.
So why the need to compare the prices for the Lexus RX 450h? Firstly, it is expected to be a huge seller for Lexus, especially in the American continent, so it's an important model to consider and understand from an economics point of view. And secondly, in the Lexus NX 300h price comparison article before, I didn't include the Middle East, where gasoline prices are about as cheap as they are Stateside; for this comparison, countries in the United Arab Emirates should be included. At the same time, prices in Asia, as we saw last time, could yield some interesting results - and I didn't want to omit those either. This time round, though, Singapore couldn't be included. The Lexus RX 450h isn't officially sold there, so for this price comparison exercise, Singapore sits it out.
Altogether, to accommodate the Middle Eastern countries whilst having to retain a similar basket of countries as before, the price comparison has now been extended from 10 to 12 countries. For these two reasons, we need a price comparison for the Lexus RX 450h.
For this comparison, I've chosen the Lexus RX 450h in FWD (Front Wheel Drive) variant. Depending on country, you can specify the vehicle with F-Sport trimmings, additional media pack and, if you want more respectable off-road credentials, AWD (All Wheel Drive). Most buyers, though, I suspect will be sensible and realise they'll never take their Lexus off road, making the FWD variant - the common denominator for this comparison exercise - the model that would be driven off the parking lot.
Here are the results of the price comparison for the Lexus RX 450h in 12 countries ranked from cheapest to dearest, and converted to US$:
Price Analysis:
The Cheapest and Most Expensive:
The cheapest country where you can get a Lexus RX 450h is Canada, at the equivalent of US$ 47,143. By comparison, if you lived in Thailand, the same car will set you back an eye-watering US$ 209,276 - almost 5 times the price Canadians pay. You have the Thai government to thank for that - regardless new or used vehicles, any car destined for permanent importation is subject to very high import duties of around 200 per cent of the vehicle's value. Unlike Malaysia where import duties are imposed as a form of protectionist policy (to safeguard national manufacturers Proton and Perodua), Thailand doesn't produce its own vehicle. Rather, high taxes are levied to discourage people from importing CBU (Completely Built Up) cars and to sway them towards buying CKD (Completely Knocked Down) vehicles - cars that require local assembly which in turn encourage local consumption and promotes domestic jobs. And that's because Thailand is a major economic hub that accounts for a large slice of global automotive output.
Japan:
It's interesting to note that the equivalent price for a Lexus RX 450h in Japan - the third cheapest country - is 22 per cent higher than in Canada. Perhaps that's due to the fact that the Lexus RX and RX Hybrid are exclusively assembled at the Lexus factory in Cambridge, Ontario, Canada. Hence all Lexus RX, including the RX 450h in question, are imported back into Japan, its home country, where it is sold as a fully-imported model.
Middle Eastern Countries:
Dubai turned out to be the next cheapest country to get an RX 450h after Japan (and the cheapest of the Middle Eastern countries), at US$ 61,265. Saudi Arabia comes in at No. 8 at US$ 72,290, 18 per cent more expensive than the former.
EU nations:
The comparison also illustrates that prices in the EU (Germany and UK being considered) are about 40 per cent more expensive than Canada. Importing a car into the UK carries with it VAT and duty costs - charges that as an overall have been effective in prohibiting foreign imported cars from entering.
Asia:
Three Asian countries were considered, these being Hong Kong, China and Malaysia. Of the trio, Hong Kong is the cheapest, Malaysia being the middle player and China is the most expensive country to purchase the Lexus RX 450h, with prices at US$ 94,307, US$ 110,939 and US$ 112,290 respectively.
So there you have it, the prices of the Lexus RX 450h compared in 12 countries. If anything, it gives us an insight into differences between national automotive policies and border taxes and duties. It also tells us that the location where a vehicle is made tends to give preferential prices to locals, as we see in the case of Canada, being the cheapest of the lot.
What do you think of these prices? Let me know. :-)
Cheers!
All Lexus
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