Paradise Found: SUV Capabilities Plus Luxury Performance
15 January 1999
Paradise Found: SUV Capabilities Plus Luxury Performance; Polk Finds Lexus RX300 Buyers Migrating From Luxury Cars DETROIT, Jan. 15 -- Recently honored as Motor Trend's 1999
"Sport/Utility of the Year," the Lexus RX300 provides an answer to upscale
shoppers looking for SUV capabilities combined with luxury performance and
style. But who is driving this "Sport Luxury Vehicle?" Recent analysis by
The Polk Company provides some insight.
Polk's data reveals that the RX300 appeal is clearly located in the
highest levels of income, with more than 40 percent of Lexus RX300s being sold
to buyers in the $125,000-plus annual household income category. In fact, the
RX300 sales track identically to the Lexus division figures -- a division that
targets luxury buyers with high levels of discretionary income.
HOUSEHOLD INCOME DISTRIBUTION*
Income Range RX300 National Avg. Diff.
Under $15,000 2.3% 19.7% -17.4%
$15,000-19,999 0.7% 4.9% -4.2%
$20,000-29,999 2.7% 15.8% -13.1%
$30,000-39,999 4.0% 14.0% -10.0%
$40,000-49,999 4.6% 10.3% -5.7%
$50,000-74,999 14.2% 20.1% -5.9%
$75,000-99,999 14.6% 8.2% +6.4%
$100,000-124,999 14.9% 3.1% +11.8%
$125,000 + 42.0% 3.9% +38.1%
*Percentages based on data sample. Source: Polk
"Lexus has succeeded in making the RX300 an appealing option for its
luxury car drivers without relinquishing the amenities they enjoy," said Glenn
Forbes, Polk's vice president of transportation business development.
Looking at age demographics, the majority of RX300 owners fall into the 45
to 54 age group. This makes them slightly younger than the average age of
Lexus division buyers, which could translate into longer term and more
profitable customer relationships. Of Polk's sample, 33.3 percent of RX300s
are registered to households that fall in the 45 to 54 years of age category
-- well above the national average -- while 28.8 percent are in the 35-44 age
group.
AGE CATEGORY COMPARISON*
Age Category (Yrs.) RX300 Lexus National Avg. Toyota Co.
18-24 0.4% 0.3% 2.8% 1.4%
25-34 9.6% 7.2% 25.7% 15.7%
35-44 28.8% 24.6% 34.7% 28.1%
45-54 33.3% 30.3% 14.4% 27.3%
55-64 18.0% 20.9% 8.8% 15.3%
65-74 8.1% 12.7% 9.2% 9.1%
Over 75 1.8% 4.0% 4.4% 3.1%
*Percentages based on data sample. Age categories based on head of
household.
Lexus and Toyota Co. based on 1997 model year. Source: Polk
"With more than 60 percent of the RX300 sales coming from the 35 to 54 age
group, it's clear that Lexus is enticing buyers into the luxury category
earlier," said Forbes. "This should prove more profitable for Lexus in the
long run."
And through the RX300, Toyota appears to be providing a very viable
alternative for its current owners. Seven of the top 10 nameplates switching
to the RX300 are from the Toyota/Lexus family, led by the Lexus ES300 at 7.74
percent.
"When it comes to conquests, the RX300 is primarily pulling from luxury
car buyers," Forbes added, "not truck buyers or truck-based SUV owners."
Polk's Lexus RX300 data analysis was compiled using the Polk Model
Monitor(R) and is based on 27,072 retail buyers through October 1998,
representing 55.8 percent of retail registrations.
Polk has served the automotive industry for 77 years and is the longest
standing curator of automobile records in the United States. Founded in 1870,
Polk launched its motor statistical operations in 1922 when the first car
registration reports were published. It provides multi-dimensional
intelligence information solutions to companies as a statistician for the
motor vehicle industry; as a direct-marketing resource; as a supplier of
demographic and lifestyle data and database-marketing services; as a publisher
of city directories; and as a data enabler for geographic information systems.
Based in Southfield, Mich., Polk is a privately held firm that is expanding
globally, currently operating in: the United States, Canada, England, France,
Germany, Australia, Spain, Holland and Costa Rica.
