Lexus: 40% of our customers are over 60, fears losing young buyers

omarrana submitted on 10/15/2007 Official AutoSpies Timestamp: 9:53 AM
from: www.egmcartech.com

[133] user comments | category: Misc News

Tags: Lexus

Lexus

Even though Lexus has been the best-selling luxury brand since 2000 and outsold its closest competitor by 50,000 units in 2006, executives worry that the brand lagging behind when it comes to attracting young buyers.

“The ES 350’s average age is 61, and their number-one occupation is retired,” says Jim Farley who recently dropped his position at Lexus to go work for Ford... Read Article

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kpaxx - 10/15/2007 10:45:34 AM

+7 Boost

They should also fear losing male buyers. Seems every lexus I see is driven by a woman.

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Catsmeow - 10/15/2007 11:01:40 AM

0 Boost

i'm a woman and i love the RX

pushrod27 - 10/15/2007 11:21:04 AM

+5 Boost

the guy said that already. what's your point lady?

EnnNorak - 10/15/2007 2:54:39 PM

0 Boost

Recent studies have shown that each generation is smarter than the next preceding one. Younger buyers are just too smart to fall for an overpriced product. The Lexus L on the grille does not justify the price difference between a Lexus and equivalent Toyota on which most models of Lexus are based.

M35MT - 10/15/2007 3:18:10 PMView My AgentSpace

+1 Boost

EnnNorak,

Stupid comment.

Agent63 - 10/17/2007 6:46:25 AMView My AgentSpace

+2 Boost

Overpriced, not really.
Based off Toyota's? not anymore.

Although I am a straight up Euro-fan, it doesn't mean I can't defend the "L" brand. We all know it had Toyota all over their previous models but the latest models are their creation. Minor parts of course they still share but I would say 90% of their materials are Lexus exclusive.

The closest equivalent to Lexus from Toyota would be the Toyota Avalon, which in my opinion is a great car, very comfortable, and attracts the 60 year old buyer.

Over price I don't agree. Bang for buck value Toyota-Lexus cars are worth the money.

American consumers want to get their money's worth and some are biased towards that and go against the German brands and that's fine. I own an LS460 and an S550 both great cars and satisfy my needs in a full size luxo sedan. The S is more eye catching and classy while the LS is Japanese technology at its best. Two different type of buyers imo and each car sets a different mood for me.

The Lexus I feel assured that I'm in a comfortable, reliable, quiet space.

The Merc I feel assured that I'm in a absolutely luxurious German saloon, with lots of curb-appeal, and European styling. Of course spending over 100K it will be comfortable and quiet.

Agent009 - 10/15/2007 10:51:12 AMView My AgentSpace

+9 Boost

A Couple of key points here

1. Avg age of a Lexus buyer is 61
2. Number one occupation is retired
3. Lexus fears that IS-F is too expensive for the younger target they do get.

They have their work cut out for them.

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Agent009 - 10/15/2007 12:28:26 PMView My AgentSpace

+3 Boost

That is true it should be ES buyer not the brand.

Agent009 - 10/15/2007 1:09:19 PMView My AgentSpace

+2 Boost

Specialized in baby boomers, maybe a bit too specialized.

autopro - 10/15/2007 11:29:30 AMView My AgentSpace

-1 Boost

Their gearing up right now for 2009.First thing they wanted to do was improve the infrastructure of its dealers to handle the service business.They didn't want to loose one of the main things that got them where are.In 2009 40%to50% of their business is not in showrooms yet according to company insiders.The is coupe which is also has a retractable hardtop is on the way spring of 2009 and a purpose built hybrid sedan that's not in the line-up now are confirmed.The are also bringing out other nitche models,and are revamping all SUV's just like they just did with the sedans.I would go out on a limb to say Lexus is about to Dominate the luxury market in America.Who knows what's next.

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Agent009 - 10/15/2007 11:39:21 AMView My AgentSpace

+6 Boost

Service is one of the strongest aspects of the Lexus lineup.

WayneDash - 10/15/2007 11:50:33 AM

+2 Boost

$65k for a Lexus Is-f?? I'm in the "younger market" they are reaching for and there is no way I'm going to turn down the other vehicles in that price range for an Is-f. I thought the price tag was going to be under $45k. Infiniti is going to DOMINATE lexus in the next 5 years.

G37 >> Is350
G35 >> Lexus ES
M45 >> Lexus GS
Q45 Coming Soon (Lexus "Avalon" Sucks) LOL

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M35MT - 10/15/2007 3:20:30 PMView My AgentSpace

+2 Boost

The G35 is a IS350 competitor, not an ES competitor. The ES is FWD and based on the Camry. Infiniti no longer has such a product (I35 last sold in 2004).

S4cabriofoxone - 10/15/2007 5:04:39 PMView My AgentSpace

+2 Boost

I'm just wondering... how could you ever think that the IS-F would be under $45K? That's roughly the price of a loaded IS350, and everything else in the class (performance sedans) will be/is over $60K. That's a pretty naive comment... the M3 was $45K... in 1999.

autopro - 10/15/2007 5:20:45 PMView My AgentSpace

0 Boost

Come on Infiniti's not even in the game. LOL

Agent63 - 10/17/2007 6:48:46 AMView My AgentSpace

+1 Boost

of course Infiniti is in the game. The G37 numbers is comparable to the 335i and i've heard they outperform as well. bang for buck value Infiniti takes it.

They just lack depth in their lineup. No full size sedan.. and perhaps a performance brand

Agent009 - 10/15/2007 12:29:44 PMView My AgentSpace

+5 Boost

The problem is finding the IS for that amount. most of the dealers load em up with options.

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Agent009 - 10/15/2007 1:10:17 PMView My AgentSpace

+2 Boost

Houston- Interesting concept, so Lexus has a ways to go communicating to Gen-Y?

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enthusiastx11 - 10/15/2007 1:17:22 PM

-2 Boost

this is the dumbest logic you've foisted on us yet houston. everyone knows the IS is entry level. and any entry luxury buyer knows the 3-series and C-class cost more.

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enthusiastx11 - 10/15/2007 2:01:40 PM

+1 Boost

houston:

mercedes and bmw outrank lexus in terms of heritage and prestige because people correctly believe they're more expensive. and anyone over 30 remembers that lexus started as a bargain alternative to mercedes.

so please explain how people would conclude 'oh i can't afford a lexus so i'll just get a mercedes.'

your rationale makes no sense.

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enthusiastx11 - 10/15/2007 3:58:08 PM

-1 Boost

i shouldn't bother responding to you any longer houston. you don't have a grasp of either reason or logic. it's really sad.

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S4cabriofoxone - 10/15/2007 5:07:28 PMView My AgentSpace

0 Boost

"The only way you can get the World's best Sound system the Mark Levinson on the 2008 LEXUS IS you have to get the IS 350 then purchase the $8,000 Luxury package which makes the price $45,000 + ttl your pushing $50,000."

Well have you ever considered the fact that most NORMAL young buyers are more interested in simple things like an iPod connector than the "world's best sound system" in their vehicle? It's just unnecessary. At the almost-$50K price you mentioned, I'd just get a GS... or better yet, not a Lexus.

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EL34 - 10/15/2007 12:28:31 PM

+2 Boost

"Lexus: 40% of our customers are over 60"

A lot of senior citizens buy Buicks too!

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LexSucks - 10/16/2007 11:53:08 AM

+7 Boost

His point is that Lexus is nothing more than a japanese buick.

kpaxx - 10/15/2007 12:40:17 PM

-2 Boost

Funny how there is a correlation between the reliability of a car and age? Hmmmm?

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autopro - 10/15/2007 5:18:14 PMView My AgentSpace

+4 Boost

Your right when you reach a certain age you dont want to put up with the aggrivation of bringing your car back anth forth to the service dept.

david999 - 10/15/2007 1:08:57 PM

+2 Boost

Many of the more expensive brands have older buyers. What do you think is the average age of a Ferrari owner, Aston Martin etc.? You believe 20 year olds all own BMW or Mercedes cars? It all has to do with price and what people can afford.
In Japan, many of the auto manufaturers are in fact coming to the conclusion that the younger generation is losing interest in cars for various reasons.

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enthusiastx11 - 10/15/2007 1:21:30 PM

0 Boost

the point is that AMONG luxury car buyers, lexus buyers are significantly older than mercedes, bmw or audi.

for example, the S-class starts at $87,000 and the LS starts at $61,000. despite costing more, the average S-class buyer in in their 50s while the average LS buyer is in their 60s.

david999 - 10/15/2007 2:44:27 PM

-6 Boost

The real point is that in North America, luxury car buyers still purchase more Lexus vehicles than any other brand.

enthusiastx11 - 10/15/2007 2:50:13 PM

+1 Boost

yes, lexus sell more entry luxury cars than any other luxury brand....IS, ES and RX are 75% of the brand.

enthusiastx11 - 10/15/2007 4:00:15 PM

-3 Boost

six:

in the US, the combined sales of ES, IS and RX are greater than the 3-series.

however, on a global level, the 3-series ALONE outsells the entire lexus brand.

IS3andME - 10/15/2007 1:10:21 PM

+5 Boost

WayneDash, do you not understand that the IS-F is geared towards the RS4 and the M3? There is no way in in the coldest place in hell, would the IS-F be sold for 45k.

You obviously do not know too much about cars. Because the G37 is a coupe, so the IS350, would have to have a coupe model to go against that and the 335i. And the ES is a front driver, the IS350 would go against the G35 sedan. The Avalon is a front driver as well, the LS series is a rear driver...

Man, your knowledge sux...Is Autospies being taken over by people who know nothing about cars?

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Luxurious - 10/15/2007 1:14:45 PM

+1 Boost

all that talk is by an ex-executive..of course he is going to be trash talking..and I can understand that the average age for the ES is 61, because that age is its target.

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enthusiastx11 - 10/15/2007 1:22:29 PM

-1 Boost

if you read the quote, it was made when he still worked there.

Luxurious - 10/15/2007 1:52:22 PM

0 Boost

and that's why he is not working there anymore..lol

enthusiastx11 - 10/15/2007 1:58:20 PM

0 Boost

please, the man is a superstar of the auto world...he's not there because he got a better job.

besides, he was just sharing facts.

enthusiastx11 - 10/15/2007 1:18:30 PM

-1 Boost

why is this surprising?

lexus are big, softly sprung, quiet cars with cushy rides. just what older people want.

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2ndbimmer - 10/15/2007 2:08:55 PM

+2 Boost

The 3 series average age is in the low 40's, not the 50's. There are a lot of young people who drive subaru WRX STI's and those are in the upper $30,000 range like the IS250. So, houstoncutie, Lexus are no fun! If you are boring and only like straight lines, you get a Lexus. The younger market does want speed and fun, look who the fast and the furious market too.

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david999 - 10/15/2007 2:48:54 PM

-2 Boost

Oh boy, lets all get Subarus!

Star - 10/15/2007 3:49:48 PM

-1 Boost

In every single review Mercedes walked all over Lexus when it comes to luxury and ride quality. Lexus doesn't do ANYTHING better than Mercedes. From the cheap materials Lexus uses in their cars to the horrific designs there is NOTHING appealing about a the cars they build. Your rants don't make any sense since even if we would take your standards when it comes to luxury cars as the real standard, Lexus will still lose against a brand like Mercedes.

If you really want "best interior, the most comfortable ride and attention to detail" then Mercedes is your choice, NOT Lexus.

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enthusiastx11 - 10/15/2007 3:51:45 PM

-6 Boost

is lexus a great brand? yes.

but are handling and performance irrelevant as you say? no. and to many, many people a luxury car should do everything well. hence, the ability of mercedes to charge such a massive premium for cars like the S-class that does everything well.

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enthusiastx11 - 10/15/2007 3:54:57 PM

-6 Boost

GS300: get over your reliability schtick.

according to JD power the difference in 'problems' between the entire mercedes and lexus brand over 3 years of ownership is less the 0.5 problem. they're all incredibly high quality cars. quality of build is not a differentiator any longer. however, quality of materials certainly is...the difference between an E and a GS or an S and an LS is striking. the mercedes feel way more luxurious.

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Star - 10/15/2007 4:23:27 PM

-7 Boost

So based on your unique experience we can conclude that Mercedes's have electrical problems? You got to be kidding... and by the way you need to calm down too.

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S4cabriofoxone - 10/15/2007 5:11:47 PMView My AgentSpace

-4 Boost

"This is just another thread that provides "ammunition" for the Lexus haters and German fanboys to try and further tarnish a great brand."

Get off your high horse.

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enthusiastx11 - 10/15/2007 4:01:13 PM

-4 Boost

funny....didn't anyone else notice that the number one 'profession' for ES buyers is 'retired.' lol

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Star - 10/15/2007 4:19:02 PM

0 Boost

His point is that only people who don't have a life anymore buy ES. Clear enough?

Star - 10/15/2007 4:33:58 PM

-4 Boost

"How does 'retired' translate to not having a life any more"

I admit that was a little too much. Let's say that "other" things become more important at that age. We all know that in America Lexus dealers are definitely more attentive to their customers than other dealers. Older person=more dependency, needs somebody to show some care. We all understand that...and it looks like Lexus understands it better than everybody. They decided that instead of spending money to improve their product(Lexus cars) they should take "kissing ass" to another level, in an attempt to make up for the inferior products they make. Fortunately for the car enthusiast, Mercedes and BMW still spend their money trying to make the best cars out there(and they succeed), and I would say that's quite the opposite of what Lexus does.

LexSucks - 10/16/2007 3:56:53 PM

+1 Boost

GS300:

His point is that the number 1 buyer of the Lexus ES is a retired Card carrying AARP Member. LOL!!!

EL34 - 10/15/2007 5:26:07 PM

-3 Boost

Come to think of it I see a lot of older Grannies driving their Lexuses around Irvine, Ca ;)

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EL34 - 10/15/2007 5:29:07 PM

-8 Boost

People that drive a Lexus are on laxatives.

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autopro - 10/15/2007 5:43:02 PMView My AgentSpace

0 Boost

people who drive Lexus don't give a rats ass what you think,and neither does Lexus they keep selling what people want.

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answer - 10/15/2007 6:16:58 PMView My AgentSpace

+2 Boost

Well, has anyone started out with a first job making $250,000+, then continue to lose a percent of that salary as each year goes by?

I didn't think so. That because people earn higher incomes as they get older.

The average age for all luxury vehicles tends to be high. Saying the Lexus average age is 60 something while the BMW or Mercedes has a 50 something average really isn't that big of deal.

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Star - 10/15/2007 7:34:17 PM

0 Boost

I don't think you understand the problem. Lexus cannot gain luxury car status(and that's what they need...BADLY) just by selling RX to soccer moms and a few LSs to some 70+ retirees. They want to gain status that allows them to take a shot at the big boys like Mercedes and BMW. For that you need buyers under 60 years old and maybe some men next to the usual female buyer Lexus counts on right now.

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enthusiastx11 - 10/15/2007 9:54:42 PM

+2 Boost

"Lexus is already the standard by which all luxury makers must be judged by."

what planet are you on? if lexus were the standard, they would be able to charge a premium for their cars relative to competitors. they are not, and they can not.

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SixxFive - 10/15/2007 8:06:54 PM

0 Boost

Another problem for Lexus: current issue of Automobile features a long term test of the new LS. Nice car, boring to drive and aside from the first service that is paid for by Lexus, requires owners to visit the dealer every FIVE thousand miles for servicing. 15K service cost almost $500.

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huu76 - 10/15/2007 10:23:02 PM

0 Boost

"that doesn’t mean that Lexus will be going down the BMW 1-Series road any time soon"

Lexus knows most poser young people have no money, hence they gravitate to the 1-series and other budget German cars.

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enthusiastx11 - 10/15/2007 10:58:22 PM

+1 Boost

actually it's because lexus already overlaps with the toyota brand. and if they produced a smaller car than the IS it would overlap completely with toyota.

bmw does not have this problem as all bmw cars are well...a bmw. they're not rebadged lesser cars.

omarrana - 10/15/2007 11:16:25 PM

+4 Boost

they should really redesign the RX...its just not appealing at all

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dante1 - 10/15/2007 11:20:38 PM

+2 Boost

Ok, I just turned 60, retired educator and own a
2008 Lexus SUV.

I am a little surprised that Consumer Reports has
not been mentioned, or maybe I missed it. I considered Mercedes but how many of you know that they
do not have one car on the recommended list? Did you
know that Lexus is listed in almost every category as
most reliable and Mercedes is not. I think this says a ton coming from an objective, responsible and reliable publication

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S4cabriofoxone - 10/15/2007 11:27:05 PMView My AgentSpace

-1 Boost

PLEASE... learn how to type a paragraph that's readable.

LexSucks - 10/16/2007 11:56:33 AM

+3 Boost

Anyone who uses Consumer Reports for car info is either a fool or a non car enthusiast. Vaccumm cleaners and microwaves are the areas in which I would get info from Consumer reports.

LexSucks - 10/16/2007 2:16:44 PM

+1 Boost

Consumer Reports will rate a car higher because of a lower price and things like cup holders. CR puts performance and handling near the bottom of their priority list when evaluating vehicles. If that's what you use to obtain car knowledge then I feel sorry for you.

S4cabriofoxone - 10/16/2007 5:37:38 PMView My AgentSpace

+3 Boost

"CR has pointed out that a 2006 mb ML500 is LESS RELIABLE than a 1998 LS."

Why is this surprising? It has been brought up time and time again... but a car with less technology (1998) will be more reliable than a car with new technology (2006).

"even the cheapest TOYOTA is more reliable than ANY audi, bmw, or mb."

Or LEXUS! Again, it's all about the complication of the vehicle, not how expensive it is! But when you think about it-- it is about how expensive the car is! Because the less expensive vehicle is usually less complicated.

LexSucks - 10/18/2007 5:30:28 PM

+2 Boost

Neither car is going to leave you stranded on the road. And I would glady accept a couple more trips to the dealer for a exciting BMW, rather than a boring lexus.

S4cabriofoxone - 10/18/2007 6:01:59 PMView My AgentSpace

+1 Boost

"in ANY given past year, lexi with equally complex options as the german big 3 still remain more reliable. so it's not just a matter of increased complexity leading to more problems."

Yes, I agree with that (with one notable exception) but it's still unfair to compare a car from 1998 with a car from 2006. A 1998 RX300 will be more reliable than a 2006 RX350 (but maybe not with a '98 Merc vs. an '06 Lexus, as those were the Mercedes-Benz Dark Ages).

Times change, though... the BMW 5 Series and Audi A6 are more reliable than the Lexus GS this year.

Sedulous - 10/15/2007 11:31:08 PM

+3 Boost

Can I just say that nearly every luxury manufacturer will attract older buyers for simple fact that most young people can't justify paying more than $30,000 for a car... really people, it doesn't matter, luxury=expensive=retired people?young people just out of college

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dante1 - 10/15/2007 11:47:19 PM

+1 Boost

"PLEASE... learn how to type a paragraph that's readable."

Get off your high horse.

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SixxFive - 10/16/2007 12:31:13 AM

+1 Boost

RICEMASTER: obviously the moral of your post is that you did not comprehend my point by stating the facts: that the LS has to be taken back to the dealer every five thousand miles for a service and with the exception of the first service, the owner has to pay for all following services at this type of mileage interval. If you have an issue with the facts, write a letter to Automobile magazine.

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deepwater - 10/16/2007 2:13:32 AM

+3 Boost

Lexus made lot of strategically mistakes:
- Heavy bodies and they needed big engines. The vehicles are expensive.
- Missing compact models and missing smaller engines. 3-5 door H/B are missing (Mini, BMW1, A3...) and 1.6-2.0 engines with turbo or supercharger.
- Every Lexus model is saloon and SUV (Except the 7 years old SC = Toyota Soarer). Small Coupe and Station Wagon are missing.
- SUV missing similar with BMW X3.
- Diesel policy is missing. The European IS 220d diesel is terrible.
- Missing young and fresh colours.
- The young designers are missing. Lexus models designed by old japan engineers to old people. They do not know the needs of younger people.

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autopro - 10/16/2007 10:55:37 AMView My AgentSpace

-2 Boost

Hey DEEPWATER,I'm glad your not running Lexus because they would be in DEEPS*IT.

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enthusiastx11 - 10/16/2007 11:11:14 AM

+2 Boost

it's apparent he's commenting on the european market where lexus has been a sales disappointment since it launched in britain in 1990. and many of his points hit on the most successful elements of the german luxury brand in the european market.

LexSucks - 10/16/2007 3:53:35 PM

+1 Boost

40% of Lexus customers are over 60? HA HA HA HA HA!

I've always thought that Lexuses were desinged for the geezer crowd. This proves that point.

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autopro - 10/16/2007 5:03:20 PMView My AgentSpace

0 Boost

enthusiastx11 You keep commenting on europe europe europe we live in USA USA USA USA USA.

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S4cabriofoxone - 10/16/2007 5:43:05 PMView My AgentSpace

+1 Boost

He was referring to someone else's post.

autopro - 10/16/2007 5:05:04 PMView My AgentSpace

+2 Boost

With a handle like lexsuks nobody is going to take you serious f off.

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autopro - 10/16/2007 5:07:50 PMView My AgentSpace

+2 Boost

BTW as long as people have the money to buy anybody's product I don't think they would show you the door because of age,sex color or creed!

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S4cabriofoxone - 10/17/2007 10:43:18 PMView My AgentSpace

+1 Boost

Actually, super-high-end makes (Ferrari, Rolls et al) do reserve the right to do that. Ferrari doesn't like selling to younger potential clients, and Rolls tries to keep away from the rappers. They both want to maintain their "old money" images.

Beemer4u - 10/16/2007 6:38:09 PM

+3 Boost

Just like I've always said, "Lexus is a fine car. I've even recommended one to my mother" But if you prefer adrenaline to novocaine, your money is better spent on a BMW. Houstoncutie is a Montrose transvestite and/or an idiot.

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ashramboy - 10/17/2007 2:12:04 AM

0 Boost

lexus is for girls. I see more girls drive the lexus than the boys.

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ashramboy - 10/17/2007 2:13:11 AM

0 Boost

actually, everytime i see a lexus, a girl is driving it.

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EL34 - 10/17/2007 12:25:47 PM

+2 Boost

Every Lexus comes with a compartment to keep false teeth.

Nice job Lexus ;)

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Mercedes - 10/18/2007 2:23:25 AM

+1 Boost

	omarrana I hooked up my accelerator to my brake lights. I hit the gas, people behind me stop, and I'm gone.
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