Lexus announces five-year capped price servicing

All new Lexus vehicles in Australia will now be offered with a standard five-year capped-price servicing plan – bettering an existing mix of three-year and five-year programs.

Due to be introduced from 1 May 2024, it will include all current-model Lexus vehicles, as well as the upcoming Lexus GX scheduled for local showrooms in mid-2024.

The Lexus LBX is said to have arrived in local showrooms on March 18, priced from $47,550 before on-road costs.

The cost of routine maintenance on the LBX at 12 months/15,000km intervals is $595 per service, for a total of $2975 over five years/75,000km. The related Toyota Yaris Cross charges $1250 over five years/75,000km.

Lexus introduced capped price servicing in 2020, covering three years, after parent company Toyota launched its own program in Australia in 2008.

Luxury brands have typically only offered capped-price servicing programs when each visit to the dealer is purchased as part of a pre-paid pack, with Lexus an outlier compared to its rival car makers.

Mercedes-Benz Service Plans cover annual servicing for a choice of three, four and five years, ranging from $1895 to $8155 depending on the vehicle.

BMW Australia also offers five-year service plans – ranging from $2210 to $3700 depending on the model – with three-year capped pricing available on used vehicles, and six years on electric BMWs.

"The pricing transparency of five years capped price servicing will be standard across our entire range. That includes complimentary pickup and return of the vehicle from home or work, a loan car and a wash-and-vacuum," Lexus Australia boss John Pappas told local media this week.

Lexus also said buyers can include the capped price servicing costs in the monthly payment for a Full-Service Lease through Lexus Finance Australia for the LBX, but not other Lexus vehicles – yet.

The Full-Service Lease is a single monthly payment that can cover registration, insurance and fuel, as well as the lease of the vehicle.

“The reason for that is because obviously, usership is for the younger buyer coming through this car; we're looking at trying to get that younger demographic,” a Lexus Australia spokesperson said.

“Once we learn from LBX we will then work out whether we can expand this to other models across the range.”

The announcement at the Lexus LBX launch was accompanied by the extension of the ‘Encore Elevate’ subscription program to owners of Lexus vehicles of any age.

For an $1899 subscription fee, it allows owners to borrow another Lexus model from the company’s pool of approximately 60 cars for up to five days, twice a year.