SEATTLE — The "all-inclusive" lease package Lexus is offering in certain markets with its new UX subcompact crossover will be a test of how much new luxury customers are willing to pay for simplified, flexible alternatives to ownership.
The Lexus Complete Lease, announced last month, is a two-year, 20,000-mile lease program for the UX that includes insurance, maintenance, tire-and-wheel protection and telematics services in one payment. The add-ons have fixed prices, but Lexus said the overall monthly price will be set by dealers in the selected markets.
"For us, it's really important that the dealers are the ones, front and center, to work with the customer because that's where the relationship exists," said Cynthia Tenhouse, Lexus general manager of product and consumer marketing.
Lexus didn't identify the insurance provider. The other products come from Lexus' finance arm.
The Lexus Complete Lease package of services is similar to Volvo's Care by Volvo flat-rate subscription plan, which costs $600 to $700 a month for the XC40 compact crossover. The Volvo deal also includes a trade-up option after 12 months, a greater mileage allowance and ability to order the subscription online.
The Lexus program is aimed at attracting first-time luxury buyers who prize the flexibility of a shorter commitment and a simpler payment structure. It initially will be available in the Los Angeles, Boston, Chicago and Miami areas. Those cities have the highest lease penetration in each of Lexus' operating regions, Tenhouse told Automotive News at a media preview here.
"If we feel like there's an appetite for this, then absolutely we'll expand," she said.