Hello, speaking with a dealer and looking at a 2023 lexus rx 350 hybrid. they are doing a 2500 above MSRP price adjustment. Also feeling as if the documentation fee is a little high? Unsure of the dealer delivery fee? I know luxury tax is a thing in NJ. Practically 8.4k adjustment from initialy MSRP.
MSRP of vehicle: $59,730
Selling Price of vehicle: $62,230
Dealer Documentation Fee: $899.75
Dealer Delivery Fee: $179
Sales Tax: $4,194.20
NJ Luxury Tax: $248.92
NJ Tire Fee: $6
Estimated Motor Vehicle: $412
Total Out The Door: $68,169.87
At today’s historically high average price, this markup would pay for 2360 gallons of gas.
And I’m sure you’re already aware that if you can find something with an MSRP under 45K you won’t owe the luxury tax. Not to say that you have to capitulate on both points, but that is a huge premium, upfront, for a modest gas savings.
mostly city and definitely looking to buy as you pointed out, lease would be a poor option. @jeisensc I see your point. Will have to reconsider if hybrid truly is worth it. Thank you!
I had two hybrids, but that model only came in a hybrid and this was when lease deals were plentiful. I want one too, the math doesn’t pencil out at MSRP+, without tax credits: lease residuals generally low and MF generally high.
In NJ the hack would be an EV, but you’d need one with enough range to cover your driving. A Bolt/Leaf/ID4 under $45k is the opposite of an RX350h.
There’s still a a decent number of MY22s in the tristate. If you want to be the first to have a MY23 hybrid, I’d say $2500 over plus $900 doc is fair. There are dealers in NY doing sticker plus $175 doc, but you’ll have to wait.
Someone correct me if I’m wrong, the new MY23 RX350 and RX500 require premium fuel. The RX350h (no turbo) will run on regular.
@jeisensc driven the rx 350? Yes, and do enjoy it! and continuining to look more at the gas engine option as well Will be keeping this and thus financing. @smehta9 you bring up a great point and I was thinking it was regular? But again will confirm, thank you for the insight! @ctnyc dang…didn’t know it would be that much different! lol, thank you for that and the insight!
Definitely not everyone’s experience, so get quotes for both gas and hybrid, but for whatever reason for my location/driving profile, geico’s thought that me driving a hybrid RX was a higher risk than a gas RX… They also thought me driving an AWD Acura TL was significantly higher risk than a FWD TL.
@jeisensc maybe math is wrong here so if I take an average of 10mpg difference between the 2 (hybrid vs gas). over 10k miles, thats 1k difference and gas average of 3.50 = 3500 dollars/1 year. so initial discount on gas engine would deterioate quickly considerating this is a buy? Not sure if math is correct but feels correct lol. @ctnyc, will def call insurance company and discuss. lol at the AWD vs. FWD TL.
Math is a bit off (EDIT or use an online calculator like @jeisensc was smart enough to do)
Using 10k miles and assuming city MPG figures
Hybrid: 270.27 gal @ 37 MPG
Gas: 476.19 gal @ 21 MPG
Difference: 205.92 gal/yr * $3.5/gal = $720.72/yr
Check if hybrid needs premium gas vs regular. Outgoing RX required regular for gas and premium for hybrid.
Isn’t the MSRP of the hybrid a few thousand more than the gas engine? You will have to include that premium in your calculations. By the time you break even you will probably have to spend extra for maintenance on your hybrid.
everywhere online it says regular is acceptable for the hybrid option as well. but thank you for the clarificaiton on the math and lmao yes, used @jeisensc calculator to expediate the math. @cezar9 yup thats what its looking like!
TL;DR - RX350h can run on the cheap stuff. Everything else requires premium.
From the MY23 manual:
RX350: Select premium unleaded gasoline with an octane rating of 91 (Research Octane Number 96) or higher required for optimum engine performance and fuel economy. If the octane rating is less than 91, damage to the engine may occur and may void the vehicle warranty.
RX350h: Recommended to use premium unleaded gasoline with octane rating of 91 (Research Octane Number of 96) or higher for optimum engine performance. You may use unleaded gasoline with octane rating as low as 87 (Research Octane Number of 91). In this case, engine performance may be decreased. Use of octane rating unleaded gasoline with an octane rating lower than 87 may result in engine knocking. Per-sistent knocking can lead to engine damage.
RX500h: Select premium unleaded gasoline with an octane rating of 91 (Research Octane Number 96) or higher required for optimum engine performance and fuel economy. If the octane rating is less than 91, damage to the engine may occur and may void the vehicle warranty.
and about 15k miles/year so hybrid would def help
Will be keeping this and thus financing.