LEXUS GOES TO THE TOP OF THE CLASS ON RESIDUAL VALUES
Class-leading residual values on the Lexus IS range are underscored by a combination of model exclusivity and badge power.
Class-leading residual values on the Lexus IS range are underscored by a combination of model exclusivity and badge power.
Residual value predictions from used car experts CAP suggest that the residual values on the IS 220 - the first Lexus diesel - could be 45% at three-years/60,000 miles, while the IS 250 will retain up to 43% of its value (October, 2007).
Those figures put the IS ahead of a raft of models including the Audi A4, BMW 3-series and Mercedes-Benz C-class. Add in the superior standard specification of the Lexus versus the mainstream competition and the package is proving attractive to an increasing range of fleet operators.
The IS 250 and Sport models will each retain 43% of their value at three years/60,000 miles - the SE 42% and SE-L 41%, according to CAP. That means, for example, that the SE (£26,272) will retain £10,975 of its new price at disposal time, while the BMW 325i SE (£25,910) will retain only £10,300 (40%), according to CAP’s October 2007 figures. Therefore, over a three-year/60,000 mile operating cycle the Lexus will depreciate by £15,297, while the BMW will ‘lose’ £15,610.
Meanwhile, the IS 220d will retain 43%-45% of its new price across the model line-up with the SE (£25,567) depreciating by £14,242 (44%) against the BMW 320d SE’s £14,695 (41%), the Mercedes-Benz C220 CDI Elegance’s £15,137 (42%) and the Audi A4 2.7 TDi SE’s £16,275 (42%), according to CAP data (October 2007).
Undoubtedly, the much-publicised growth aspirations by the German manufacturers is impacting on residual values and that is adding to the exclusivity of the Lexus badge, which, in turn, is aiding used car values.
Apart from residual values much of the increasing demand for the IS range is also due to its advanced European styling
The strength of the Lexus wholelife cost proposition coupled with the fuel economy of the IS 220d (44.8 mpg on the combined cycle) has proved popular at AstraZeneca, one of the world’s leading pharmaceutical companies, which has almost 50 of the cars on its fleet. Additionally, the company operates Lexus GS 300 and RX 400h models.
Market fleet manager Judith Popay said: “Our fleet has moved from the traditional company car volume manufacturers towards offering our drivers the choice of more prestige brands.
“The 220d has been popular since launch because of its affordability from the drivers’ viewpoint as well as in terms of operating costs. The quality of the vehicle is very good and it is very well-specced.”
