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Lexus HS 250h Pricing—Will It Be Low Enough?

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2010 Lexus HS 250h

2010 Lexus HS 250h

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A couple of weeks ago as we got our first drive of the upcoming 2010 Lexus HS 250h—and a first up-close look at its many tech-savvy features—Lexus officials were still guarded about pricing.

It makes sense that even just before launch the company is cautious about pricing for this accessible hybrid that, by some accounts, could be called an entry luxury model. The brand has already adjusted its estimated sales figures; at the HS 250h’s debut in Detroit, Lexus General Manager Mark Templin said that the brand hoped to sell 30,000 of the luxury hybrids annually, but by the time of the media preview TheCarConnection.com attended the number he gave had been adjusted to 25,000.

I knew going into the preview that many in the media and auto industry are anticipating the HS’s starting price, when it goes on sale later this summer, to be just on the high side of $35,000, but is that too high? Some other sources on the Web are wishfully estimating upper twenties, but it’s highly unlikely to be quite that low given the extra engineering that went into the HS 250h. When a company representative asked what I think the HS should start at and I responded $33k—which I thought seems reasonable—it was followed by an eerie silence as if I’d just given a too-distant number on The Price Is Right.

2010 Lexus HS 250h

2010 Lexus HS 250h

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Given the standard spec of the HS, and an extensive options list that will likely bring the bottom-line price of a loaded HS 250h up to $45k or higher, it doesn’t make sense to price the base HS that much higher than a fully loaded Prius. The Prius starts at $22,750 for the base Prius II, while the top-trim Prius V loaded with the Advanced Technology Package and the Navigation System comes in at $32,520, with destination. That includes lots of extras, like smart cruise control, a Pre-Collision System, Lane Keep Assist, a backup camera, and a voice-activated nav system with XM NavTraffic, that are all optional on the HS. And oddly, the intelligent parking assist system and cool Solar Roof Package both offered in the Prius aren’t available in the HS.

Admittedly, there’s the Lexus dealership experience, and that’s worth a lot on its own. The HS 250h also has more power and slightly better drivability, a slightly sportier feel, better isolation from road noise, and a heftier feel going down the road (it’s a lot heavier), plus a very nicely appointed interior. But HS’s interior is also more cramped than that of the Prius, and its fuel economy is significantly lower, for those that do mind the difference between 35 mpg city and 51 mpg city.

Firstly, I don’t see why the bigger-budgeted, comfort-oriented segment of Prius shoppers wouldn’t cross-shop the HS. When a friend bought his Prius Touring quite recently, the dealer told him that he was getting the “Lexus of Priuses.” Well, that’s sort of the HS now, right?

What else would people consider with the HS 250h? The Camry Hybrid is another logical rival—a roomy hybrid sedan, albeit one without as much luxury, that sells for less than $27k base and about $31k with extras like leather heated seats, a nav system, and upgraded audio. It doesn’t include the Lexus name, the plush interior, or some of those tech features but—surprise—it actually accelerates faster than the HS, and has great back-seat room. At the top end of the comparison, shoppers might also compare a base Lexus RX 450h starting at about $42k, with a fully loaded HS 250h at the dealership. For those set on a sedan, I can see green shoppers also looking at the more affordable clean diesels like the VW Jetta TDI or, at the top-lux end, the new BMW 335d. And then of course there's the much acclaimed Ford Fusion Hybrid, which is less luxurious but cheaper, more fuel-efficient, roomier and, by more accounts, more fun to drive.


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Comments (6)
  1. "35K"

    35K is too much for me but I'm sure this car will find many buyers at thisprice point. I myself would buy a mid-priced Camry hybrid - it's my favorite out of the whole bunch (Fusion is too small, too scarce, too expensive, and too MPG-overrated.)
     
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  2. The Pius has become too much of a red herring for me, driven by too many pompous "I'm saving the planet" faux-environmentalists. I might be interested in this sedan, though don't care about all the electronic gizmos. Just looking for a sedan that is a hybrid, rather than a Hybrid Sedan.
     
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  3. I am in this boat - I am looking to buy the HS or Prius in the Spring of 2010. I think $35K would be ok for the base price, but if adding all the cool tech options (which I want) puts it over $42K I'm out! I'll go for the loaded Prius - what really turns me off the Prius is the funky speedo placement. Also, where I live, the Lexus dealer is much more accessible. What I wish I could have is a hybrid version of the Lincoln MKZ (Ford Fusion twin).
     
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  4. I am looking for a hybrid car for a couple of years. Besides the cheap looking interior, I really like the Prius. I am very excited about the H250h has a better interior also a hybrid car made from Toyota. I wish HS250h price staring at $30k. Because with the economy saturation, if Lexus can lower the HS 250h price, many people will concern to have one.
     
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  5. $35k seems oddly low for a Lexus. I'm not sure what your logic was for the $35k price point. A moderately equipped 250IS is around $35k (and goes up from there). Hybrids usually command a significant premium...so something closer to $40k seems more realistic. (Maybe Lexus will advertise around the $35k base...but as we all know in the luxury car game the actual price out the door will be significantly higher.)
     
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  6. The H250h is the only Lexus rated for regular gas.
     
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