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Friday, 15 June 2012

Lexus vs Ford

Lexus is a luxury car maker. They are currently running a series of ads with the byline:

If you want these features as standard...   the features being things like central locking, leather seats, windscreen wipers etc.

Now most car companies offer a basic stripped-down model, with options to upgrade and prices attached for each upgrade. A basic 2012 Ford Focus Sedan starts at $16,500, add $1,00 for 16" wheels (instead of 15") and keyless entry, another $1,095 for automatic transmission (most Americans like this), and so forth. What you end up with is a range of vehicles, all called the Ford Focus, but with prices anything between $16,500  and $25,000 (a guesstimate). Most people don't want the most basic model, but it's there if you don't want all the knobs and whistles.

So if the Lexus comes with everything as standard at $25,000, and the Ford with everything added is $25,000, how is the Lexus better than the Ford?

I guess it has to be because when you see a Lexus you know the owner paid $25,000 for it, but if you see the Ford it might be the bare bones $16,500 version, i.e. they're cheapskates.

So it comes down to snobbery.

By the way, most new cars aren't paid for outright but paid in installments, so that Lexus driver is just paying a bigger monthly installment for his shinier car.

1 comment:

  1. $25K for a Lexus? Maybe a used one. My mom has an older, bare-bones model. I can ask her whether she feels like it's been worth the reputation. The main advantage, as far as I've experienced, is that at the Hippodrome (the theatre in Baltimore where we have a subscriptions for 5 shows/year,) Lexus is a sponsor and--with a Lexus key--you get to sit in a special lounge before the show. It's not that special, actually, as there are already places to sit and nice bathrooms even if you don't use the Lexus lounge. And you still have to pay for your drink. No, I would not buy a Lexus for that perk.

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