2022 RX 350 vs RX 450H cost analysis - 3 Yr. trade cycle

[Les Lex 2018]

RX 350 MPG = 20/23/27 Federal 2020 !Removed!

RX 450H MPG = 31/30/28

Delta MPG = 7 MPG

Miles/yr = 12,000

RX 350 @ 12000mi/23MPG = 522 gal.  522 x $3.00 regular/gal = $1,565

RX 450H @ 12000mi/30MPG = 400 gal.  400 x 3.79 premium $/gal = $1,516

Delta cost = +$49/yr. hybrid saving

But wait… Alabama registration tax for hybrids is $100 initial + $100/yr. or $133/yr for a 3 year turn over.

Actual saving = 49 - 133 = -84 per year loss to drive the hybrid.

But wait, the cost of the hybrid is about (like what?) $3,000? more than the RX 350.

In three year a trade will only leave half that value in.  Loss of an additional 500 per year.

But wait… The higher property value on the H makes the property tax higher than for a 350.

Grand total loss for the Hybrid is 584+ dollars per year just to fly the Hybrid emblem.

Note - If you are retired and only drive 6000 per year, you (Alabama) is paying the same Hybrid tax as the 12,000 mile drivers, meaning less wear on the highways, but you get to pay the same as everyone else.

But wait, from what I read, if you think you qualify for any rebates from the government, a lot of retired folks will not have the taxable income to use the bulk of the rebate as a write off.  That puts big companies and the high earners at the head of the table in costing out the bidding of the rare hybrid. They can justify a higher bid when competing with the retired folks for a deal.  Dealer here has only one in stock vs. about six 350s.  They will not even post the price. They do post prices for the 350.

OK, now what did I miss in this shake-out that makes me wanna go out and deal for the only H on the lot???  NOT!

[RX400h]

Overall, Consumer Reports rates the 450H 3 points higher than the RX350. In some areas, such as California where gas is about $5.00/gallon, those who live and commute in larger cities will break even with a hybrid vehicle quite a bit faster than those who drive on non-congested highways most of the time. especially in other states where gas is quite a bit less expensive.
We had a fairly generous tax incentive when we bought ours (as we did with our solar panel system) so payback over the RX330 (at the time) was less than 10 years. We now have had our RX for more than 16.5 years and it continues to excel in city driving. Highway driving mileage is about the same as a non-hybrid RX. 
Our brakes lasted 120,000 miles or so, partially because of the regenerative braking that rarely wears the pads. 

 And because fuel prices are so high, hybrids do very well when being sold. So yes, there are other factors to consider before choosing hybrid or non-hybrid.🙂

[Les Lex 2018]

Excellent analysis, Dave.  After owning a Hybrid for 4 years I have found what you say to be very true.  I loved the Camry Hybrid, but for my driving range, it was an expensive novelty.  Lexus needs to find a way to put a regular gas engine in an RX.  Feds needs to get real about their rebate policy.  And those states with dumb tax H and plug-in penalties need to do the same.

 There is no doubt that people like you have found the sweet spot in the H market. Hybrids are booming in areas like yours. Lexus does not seem to be pushing them in my area.  Maybe they are sending them all to California.  Did I mention that when I lived in Granada Hills, CA in the 60's, my 302 V-8 Ford maverick got 11 MPG...  Loved those V-8 fords.

[RX400h]

Les, I was very impressed when I read the Car & Driver review of the 2006 RX400h. Not only was it faster (0-60 in 6.6 seconds) than a Porshe Cayenne but it got superior gas mileage and would inevitably be far more reliable. Not too long after we bought ours, gas prices surged to record highs. 
I think that Lexus, like all other premium brand manufacturers, favored power and speed over all-out efficiency. The first Honda Accord hybrid followed suit. The Camry and lower cost Lexus hybrids veered toward higher efficiency. The GS450h was not one of these. It could do 0-60 MPH in 5.4 seconds and average 30 MPG, starting with the 2013 model. Now we have the LC500h that hits 60 MPH in about 4.7 seconds, not as fast as a BMW i8 but far less expensive and more reliable.

By the way, I once owned a 1968 Cougar with the same engine as your Maverick. That Cougar probably got the same mileage.😃

[Les Lex 2018]

Let's talk about the  Zero to Sixty thing, Dave.  There are several problems with fast SUVs.  Being retired, there is no longer any good excuses for being in a hurry to get somewhere. Streets are getting so congested that I have yet to impress anyone with my drag racing capabilities. Granted, the 60 to 80 passing gear numbers is more important for drivers on two lane roads. Spec sheets don't talk much about that though.

Secondly, with Lexus Enform, all my driving habits are monitored, scored and recorded.  Any time I feel like pressuring my Insurance company to lower my rates, I just sashay in and show them my cell phone app's driving record and talk about competitive rates.  The reverse side of that coin is this…  I have a sneaky suspicion that if I have or get some hot-dogging (rubber off the line) Hybrid that runs like a scalded tail ape, that my rates are going to go up substantially. 

My daze of blowing off 289 Mustangs with a 302 Maverick (or you in a 302 Cougar) are long since over.  The days of Muscle Cars is "generally" over in the U.S., but as you indicate, the Engineers with Super Charged Lithium batteries seems to have brought them back, intentionally, or by default.

 

[RX400h]

You're correct, Les. 0-60 MPH races are rarely seen or done anymore. I've owned a couple of fast cars in my life - a 1968 Corvette and a 2001 Corvette. I haven't owned a vehicle as fast as either of them since 2014. My MX5 Miata is not fast but it is soooo much fun. But I still yearn for something that is fast, once again. I'm seriously thinking of getting either a Lexus LC500h, LC500, or a Lotus Emira when I start collecting SSI. That's not too far off.  🙂
I have been renting super-fast cars via Turo but each was for 24 hours only. The fastest so far had been a 2019 McLaren 570S Spider. The 2020 Porsche 911 4S Cabriolet was also very fast but it was not as attention-getting as the McLaren. 

I don't think I will ever voluntarily sign up to allow my insurance to monitor my driving, even if it means getting a slight discount. But hey, you should consider renting an uncommon sportscar every so often, kind of like a bucket list box to check off. Your insurance company will cover you but they don't need to know when you are renting the car as long as your policy is up to date.

[Les Lex 2018]

Awesome “TRACK” record there, Dave.  I am envious!

Based on what we now know about the 2023 RX line coming next year, I will give serious consideration to the RX350h. Don’t like Turbo charged machines. The 350h will be a  LI ion charged, 2.5L 4-banger pushing 239 HP and estimated at 36 MPG. My real target is the 2024 where most of the “Bugs” are worked out of the next generation hardware and software, which of course is on a different platform and probably uses a different drive train. It's a Hybrid but not a muscle car.

Thanks for the tips, Dave...

[RX400h]

Les, It's always good to have a plan and things to which you can look forward. My advice is to not limit yourself to one vehicle over a span of many, many years if you are getting up there in age. Having at least two vehicles at a time takes away the eventual boredom that is inevitable with one vehicle. I had an uncle who leased a different car every few years. He once had a Datsun 240Z and a 1981 Mazda RX7. No one ever thought he wasn't enjoying his "rides" and life in general. 😏

[Les Lex 2018]

Well, I could almost enjoy driving anything.  As long it's not German (long story), weighs between 4 thousand and 5 thousand pounds, is no bigger or smaller than an RX350, is not a Ford, Chevy, or Dodge, gets typical MPG for the weight, not a van or a truck, and has all the same gadgets like Blind Spot and cross-track, auto lights, brights, wipers, Radar lock-on, auto-brake on stops, weather Radar, Range calculator, USB for tunes, heated and cooled seats, Nav, access to a person via DCM or Satellite access, TPM readout, Location tracking and vehicle status to the iPhone, and uses Regular gas.

[RX400h]

...almost an LC500h but the regular gas killed that idea.😏

[Les Lex 2018]

That's a 97,000 dollar car, Dave.  They have none in stock in Hsv, either used, new or certified.  Must be a real popular ride...

[RX400h]

There are some on autotrader.com's website. I look at them often. 

[Cynthia Blalock]

Are hybrid drivers finding that they have to replace batteries at around 60-70,000 miles?   If so does that potentially eliminate the benefit of the reduced fuel cost?

[Les Lex 2018]

Hi Cynthia! Based on personal experience, here is my take on hybrids...

You need to study the Hybrid reliability track record of each manufacturer individually before you buy.  Looking at resale value is a good indicator when comparing H to non-H vehicles of the same model. That's a given.

Study the type of battery technology they use. Some types wear down or out faster than others.  A hybrid battery wearing down (but not out) just decreases your MPG but does not need to be replaced.

What bugged me about the Camry H was that if the hybrid battery completely failed the car could not be started and you could have a $ problem after the warrantee runs out.

Study up on Murphy's law:  The added complexity of the hybrid vehicle, including motors, electronics, battery cooling systems, will have to be dealt with somewhere down the line by someone.  Hopefully not you!  If you don't intend to keep a new hybrid for more than the unusually long warrantee period, then don't worry about it. I didn't.

But (big if) - If you don't buy a hybrid or plug in now and you keep your vehicle for like 6 years, you could take a loss at trade-in simply because it's considered to be a gas guzzler in a market flooded with high MPG / new and used hybrids.  H-Bat factories are popping up everywhere now, so there is a war on to abandon non-hybrid vehicle production.  Ask Elon...