Woodhaven Lexus Blog

http://www.lexus.ca/lexus/experience/en/home/whatsnew/whatsnew_news.jsp#rx_350

Rapid changes in the value of the Canadian dollar mean that consumers are experiencing market conditions that are almost unprecedented in Canadian history. This uncertainty also impacts Canadian manufacturers and retailers – and those in the auto industry are no exception.

Lexus in Canada is addressing this issue in a responsible manner – one we believe will continue to provide real value to our new and current guests and the Canadians we employ both directly and indirectly.

As we make adjustments to meet current market conditions, we continue to return to a basic tenet: Value. Each vehicle made for sale in Canada is specifically equipped for the Canadian marketplace. We carefully select certain options and features, on a model-by-model basis, that we believe are best suited for Canada’s challenging climate and driving conditions and the tastes of our guests. These may differ from equipment and options selected for vehicles distributed and sold in the U.S. market. Guests might believe that the only real difference between Canadian and U.S. vehicles relates to vehicle gauges (which are in kilometres on vehicles made for Canada and in miles on those destined for the United States). Depending on the model, however, Made-for-Canada Lexus vehicles may include any of the following features:

* Heavy-duty heaters, batteries, and alternators;
* High capacity window washer fluid reservoirs;
* More robust weather stripping and seals;
* Added paint chip protection;
* Mudguards;
* Block heaters;
* All-season tires;
* An outside temperature gauge;
* Heated mirrors;
* Towing packages (for SUVs).

Flexible, open and valuable incentives

Lexus in Canada is also committed to providing flexible, open and valuable incentives to Canadian drivers. What’s more, we have structured our current programs and incentives on a wide variety of vehicles to provide as much value as possible to everyone who purchases, leases or finances any qualifying vehicle through their local Lexus Dealer – not just those few who can buy a vehicle outright.

Price respositioning

Pricing on the 2008 Lexus GS-series has been carefully repositioned by a combination of the introduction of lower Manufacturer’s Suggested Retail pricing (MSRP) and/or the addition of upgraded value in the form of new standard features and specifications as compared to comparable 2007 models. For instance, Lexus guests benefit from the introduction of a lower MSRP and the inclusion of a host of upgraded new standard features and equipment valued at over $8,700 on the base model GS 350 AWD as compared to the comparable 2007 model.

Additional incentives

In addition to price repositioning, Lexus in Canada is offering our guests great cash credit incentives on many of our most popular 2007 and 2008 Made-for-Canada Lexus vehicles. Please visit our promotions page for a current list of incentives available in Canada or see your local Lexus dealer for details.

All Made-for-Canada Lexus vehicles are also automatically covered by the Lexus enhanced Alternate Transportation Program.

A streamlined financing or leasing process

Beyond this, Made-for-Canada vehicles are eligible for available new vehicle promotions, programs, and incentives offered by Lexus Financial Services in Canada. Lexus Financial Services has committed to offering very aggressive leasing and financing rate reductions on popular Lexus vehicles – not only current 2008 models, but also many from the 2007 model year. Lexus Financial Services has also waived the security deposits on all 2007 and 2008 models leased in December.

Add it up

Best of all, these incentives – the price repositioning, programs, and attractive finance and lease rates – are designed to provide our cash, lease and finance guests with as much value as possible. We feel it’s unfair to ask Canadians to choose between incentives and low rates, so many of our vehicles are available with both. In this way, Canadians realize genuine value when purchasing, leasing or financing a new Made-for-Canada Lexus vehicle.

Tax/government considerations

But there’s more: New Made-for-Canada Lexus vehicles may be eligible for certain incentives provided by the Canadian Federal and/or certain provincial governments. These include:

* The Federal ecoAUTO rebate for fuel-efficient vehicles; and
* Provincial sales tax breaks and rebates for hybrid vehicles.

Vehicles purchased in the U.S. will not qualify for the Federal ecoAUTO rebate, although some provincial rebates still apply. However, once imported into this country, a vehicle may still be subject to the following:

* The Green Levy (an Excise Tax) on fuel-inefficient vehicles;
* GST and provincial sales tax;
* Import duties of 6.1% on vehicles built outside North America;
* Any cost to modify or retrofit a vehicle to ensure it complies with Canadian regulations. These may include the installation of daytime running lights, seat belt anchorages, child restraint tether anchorages and modifications to comply with unique bumper requirements;
* As of September 1, 2007 a new Federal government regulation was introduced requiring every vehicle in Canada to include a robust vehicle immobilization system. All Made-for-Canada Lexus vehicles manufactured after September 1, 2007 are equipped with the Canada-specific immobilizer system.

Warranty/servicing benefits

Made-for-Canada Lexus vehicles may enjoy certain warranty and servicing benefits not necessarily available for vehicles intended for other markets. These include:

* Special warranty policy adjustments and extensions from Lexus in Canada that are specific to Made-for-Canada Lexus vehicles. These may include no-cost or reduced-cost replacements of components to ensure owner satisfaction;
* A streamlined warranty process: When a Canadian Dealer works on a vehicle covered by a U.S. warranty, it may take longer to confirm coverage, secure approvals and process the repairs.
* Access to Replacement Part and Components: Lexus in Canada stocks replacement parts and components for Canadian-specified vehicles so that repairs can be completed in a timely manner. Lexus vehicles distributed in the U.S. may have equipment or components unique to the U.S. market, which may require additional lead time to secure replacement parts. This may result in additional time to carry out any necessary repairs or servicing.
* Lexus in Canada offers optional extended coverage for servicing and repairs (ECP – Extra Care Protection). This coverage is only available for Made-for-Canada vehicles.
* Special Service Campaigns: Owners of Lexus vehicles purchased in the United States may not receive timely notification of safety-related service campaigns. In addition, where a safety recall is specific to a U.S. vehicle, a Canadian dealer may not be able to carry out any necessary repairs quickly if replacement parts are not readily available in Canada. Securing replacement parts from U.S. sources may require additional lead-time, resulting in delays in carrying out any necessary repairs or servicing.

A trusted relationship

Lexus has been a part of Canadians’ lives for almost two decades and in that time we’ve experienced economic swings. Through all of this, Lexus’ presence in Canada has steadily grown. Lexus in Canada now supports more than 30 independently owned Lexus Dealers who serve our guests from coast to coast.

Buying or leasing a Made-for-Canada Lexus establishes a trusted relationship that will last throughout the ownership experience:

* Guests gain access to Canadian Lexus Dealers’ expertise on Made-for-Canada vehicle specifications;
* Guests benefit from Canadian Lexus Dealers’ knowledge of Canadian support and service programs.
* Guests are automatically enrolled in Club Lexus for online tracking of a vehicle’s service history, participation in Dealer and Nationally sponsored events, guest financial information and warranty information.

Lexus’ investment in Canada

Lexus in Canada has also expanded in this country beyond sales and service by building Canadian-based operations responsible for vehicle parts and distribution, employee and Lexus Dealer staff training, warranty and guest service, wholesale and retail vehicle financing and vehicle and part manufacturing.

* In Cambridge, Ontario, Toyota Motor Manufacturing Canada (TMMC) employs some 4,600 Canadians directly to produce some of the most popular vehicles in Canada and the United States, including the Lexus RX 350.
* In addition to direct employment, Lexus’s operations indirectly generate thousands of jobs for Canadians working at components suppliers, logistics companies, and other partners.

The story continues…

As Lexus has grown in Canada, Lexus in Canada has consistently monitored the health of the economy and has adjusted its products and services accordingly to help ensure Canadians receive genuine value for their dollar – regardless of its strength in currency markets.

The Canadian dollar’s recent strength has set new modern day records, reaching and surpassing parity with the U.S. dollar. As we move forward in these uncertain economic times, Lexus in Canada will stay attuned to market conditions and respond as quickly as possible, and in a responsible manner, to continue to deliver value to Canadians.