Before ADM
True… but is that more a function of the current climate?
No, Lexus dealers are gonna treat this like a cs version of an m car, even if market wasn’t like this, ADM is expected to its fullest. I fully expect some dealers marking up to 100k when they hit the lots
Depends how limited it is. But if it goes like we expect, dealers will mark them up $10k-$20k, then in 2 years, Lexus will cancel it and say ‘nobody bought them’.
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I doubt it lasts much beyond that anyways as the IS is long in the tooth as it is.
Just because a dealer marks it up to $100k doesn’t mean it’s warranted or will sell at that price. If there is no demand and buyers for it, the dealer will adjust the price.
This is a car that North American market asked for and the execution is based on dated technology. This is a Swan song for the IS; expect the next generation replacement to be hybrid or electric power; I would be surprised to see any development of new ICE.
I understand i just wanted to show that there would be a wave of ADM before things come back to earth and that can take a while
I totally get that, but there’s a huge difference in whether this vehicle last the presumably 6-7 year lifespan of the current version of the IS or dies in 2 model years. The next generation (if we even get one at all), will probably be a sporty crossover EV that is sold alongside the RX the way things are going.
The current gen is not only based on the 2014 redo, but that chassis dates back to the 2006 full redesign, the lack of investment tells you all you need to know about this vehicle’s future.
Or dealers choose to (collectively) sell 2,000 at an average of $10k over MSRP instead of 5,000 at MSRP as that’s better for their profitability, but Lexus / ToMoCo turns around and says the volume is too low to continue it.
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I don’t think dealers control the supply. It’s up to Lexus on how much volume they think they can push. If Lexus makes limited numbers and the demand is there, dealers will mark it up. If Lexus makes a lot but demand isn’t there, they will be forced to add incentives to get rid of them.
The market won’t support high dealer markups, as shown by the low number of sales of the F series.
Dealers control the throughput, which influences the replacement rate which influences the planned supply.
Dealers aren’t going to “collectively” choose to sell this one model at a low rate to maximize their profits. Why wouldn’t they do that to every model then?
I think there’s a reason why Lexus came out with this as an IS500 vs an IS F. Lexus knows from past models that the market won’t support such a high price for this higher powered IS.
@AutoCompanion seems to be pretty knowledgeable about Lexus. Would love to hear his expectation on the volume and pricing on the IS500.
We are trying to buy one ourselves! Dealer won’t sell us at sticker 
Likely it will be sold at $5k - $10k over. Our dealer is only getting 2.
Sorry but my recommendation is to find another car that you can get a better deal on.
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