Full-Size Sedan Battle: Lexus LS or MB S-Class and the other Germans

**HyBrideVo** · January 22nd, 2008 01:46 PM

German's know what luxury means and most especially BLING.

**n2knee** · January 22nd, 2008 01:59 PM

people who buy the lexus will buy it, because of the perceived refinement, reliability, and higher quality of materials put into building the vehicle.

people who buy the bmw will buy it, because of the perceived engineering superiority (driving dynamics, technological advancements, etc.) over the lexus and merc.

people who buy the benz will buy it simply, because it's a benz. the hood ornament speaks about their economic status. that is why the Benz C series has sold more units than the Lexus IS series even if the IS series offers more bang for the buck.

**AG4** · January 22nd, 2008 02:28 PM

Originally Posted by n2knee

it could be that Lexus was never a global luxury brand until last year, hence the large presence of german luxury brands in Japan.

I read something about japanese consumers when they launched Lexus in Japan.
Japanese consumers are highly brand-conscious.
If they are willing to spend over the equivalent of $45K, they'd consider an imported car. (If the imported car originated from the US or Germany, its a plus for them if they can get an original LHD version)

Lexus sales have gone up already in Japan(they're one of the leading luxury Brands in Japan now), one of their main advantages is the high taxes the Japanese Government puts on all imported vehicles.
In Japan a $61K LS460 costs 7.7M yen, while a $75K BMW 750i costs 11M+ yen and the $87K Mercedes S500 5.5(aka S550) costs 12M+ yen.

Here's a related report on imported luxury/high-end cars in Japan...

Tokyo, Jan 15, 2008 (Jiji Press) - Bucking the general downtrend of the domestic automobile market, sales of luxury foreign-brand vehicles have been gaining steam in Japan thanks to growing demand among the wealthy.

The robust sales in the luxury segment highlight a polarizing trend in Japan, with wealthy consumers chasing high-end cars and the rest going after cost-saving compact cars to counter the impact of higher gasoline prices and slack income growth, industry watchers said.

Among foreign brands, Porsche AG of Germany in 2007 saw a 15.3 pct year-on-year jump in sales in Japan to 4,204 units, the highest ever since the company's Japanese unit started operations in 1998.

Highly popular in the lineup are the Cayenne sports-utility vehicle, which carries price tags of 6.5 million yen to 13.98 million yen, and the 911 sports car, priced between 11.15 million yen and 26.07 million yen. Such models are drawing demand from company owners and doctors.

Similarly, Ferrari S.p.A. of Italy enjoyed an 8.4 pct increase in Japanese sales to 412 units last year, the first rise in three years.

Audi AG of Germany found that its Audi R8 sports car, launched in August last year, has been so popular that production has been failing to meet demand. With no signs of its price tag of 16.7 million yen marring demand, the waiting list for the model stretches to five months, a spokesman at the company's Japanese unit said.

In 2007, sales of new automobiles in Japan, excluding minivehicles, dropped to a 35-year low with inexpensive small cars dominating the top seller list.

For 2007, the best selling imported brand in Japan was VW, second was BMW followed by Mercedes.

**n2knee** · January 22nd, 2008 02:51 PM

^^ it is going to take some time for Lexus to catch up even in its home turf.

**AG4** · January 22nd, 2008 02:58 PM

Originally Posted by n2knee

^^ it is going to take some time for Lexus to catch up even in its home turf.

They already caught up, I think overall they are the top selling Luxury brand in Japan now, but they haven't totally killed their German luxury car competitors completey since they are still going strong even if they cost 25%-30% more than the Lexus equivalent due to added taxes for imported vehicles.

**mbeige** · January 22nd, 2008 03:07 PM

Originally Posted by n2knee

people who buy the benz will buy it simply, because it's a benz. the hood ornament speaks about their economic status. that is why the Benz C series has sold more units than the Lexus IS series even if the IS series offers more bang for the buck.

My friend, there's more to owning a Benz than social/economic status. If everybody wanted to toot their own wealth they would have purchased a Maybach which is thrice as much as the top of the line S class, or even a Bentley or a Rolls Royce.

**Jun aka Pekto** · January 22nd, 2008 03:30 PM

I guess AG4's source confirmed what I observed from a tourist's point of view.

I kinda suspected the owners of those German flagship cars were wealthy or executive honchos. I observed that most German cars were seen during during morning and evening rush hour. During quieter hours (like 9 am or 3 pm), there's not a German car to be seen on the road. It doesn't take much interpreting.....

**KBR** · January 24th, 2008 12:04 PM

people who buy the benz will buy it simply, because it's a benz. the hood ornament speaks about their economic status. that is why the Benz C series has sold more units than the Lexus IS series even if the IS series offers more bang for the buck.

well, that is somewhat true.. specially back in the days. but in this generation, anyone can buy a Mercedes-Benz (or a BMW, Jaguar or Audi.. even a Lexus). and nowadays it doesnt matter if you are rich or in the middle class (even some broke a$$ mofos who think they are rich coz they have a Benz, but they live in a 1-2 bedroom apartment shared w/ 2 families.. and cant even afford an Oil Change). specially here in the US, if you have good credit and can afford the monthly payments, insurance and maintenance cost, you can easily buy a luxury car (new or used). so I think the exclusivity and the term "status symbol" is long gone.

aite, peace.

**hitomi** · January 24th, 2008 12:38 PM

Originally Posted by KBR

well, that is somewhat true.. specially back in the days. but in this generation, anyone can buy a Mercedes-Benz (or a BMW, Jaguar or Audi.. even a Lexus). and nowadays it doesnt matter if you are rich or in the middle class (even some broke a$$ mofos who think they are rich coz they have a Benz, but they live in a 1-2 bedroom apartment shared w/ 2 families.. and cant even afford an Oil Change). specially here in the US, if you have good credit and can afford the monthly payments, insurance and maintenance cost, you can easily buy a luxury car (new or used). so I think the exclusivity and the term "status symbol" is long gone.

aite, peace.

in the Philippines sir, exclusivity and status symbols are still very much alive. the middle class do not have the purchasing power to buy even the basic model of all the luxury marques discussed (except if you buy subic sourced). the 12 million Php price of a full-specced 7 series is still too out of reach, even with the best of credit cards.

now that i bummed myself out - hehe-
i hypothetically choose to buy an LS450 or an S8, with my hypothetical money

**Jun aka Pekto** · January 24th, 2008 03:19 PM

Originally Posted by KBR

w but in this generation, anyone can buy a Mercedes-Benz (or a BMW, Jaguar or Audi.. even a Lexus). and nowadays it doesnt matter if you are rich or in the middle class

That's very true. The Ford dealership which does the tuneup for our Contour saw me longingly eyeing a Saleen supercharged Mustang GT. He did a little credit check on me and said if I wanted to, I can drive that car home that very same day.

Then my wife butted in and said we're just there for an oil change. He He

.