Why did Lexus lose money on the LFA?

Why Lexus Lost Money on the LFA
Lexus lost money on the LFA for several reasons, as indicated by various sources:
1. High Production Costs: The development and production of the LFA involved significant investment. Lexus pumped untold amounts of money into the LFA, with estimates suggesting billions of dollars were spent during the decade-long development process. Despite the hefty sticker price of $375,000, Lexus lost money on every LFA sold.
2. Marketing and Brand Value: While the cost of production versus sales price may not have been favorable, there is value in creating the LFA that is not captured by strictly looking at the financials. Having a flashy supercar like the LFA can generate brand equity through marketing, car shows, and dealership displays.
3. Limited Production and Pricing: The LFA was priced at around $400,000 when new, which was viewed as overpriced and underpowered against its competition. However, its limited production, well-aged design, impeccable build quality, and thrilling engine have made it a highly collectible modern classic, appreciating in value over time.
4. Engineering Feats and Technological Prowess: The LFA is recognized as a combination of engineering feats achieved by Toyota, using many lessons learned in the sport of Formula 1. Despite its technological prowess, questions have been raised about whether the LFA was a waste of time, money, and effort.
In summary, the high production costs, marketing and brand value, limited production, and the car’s engineering feats all contributed to Lexus losing money on the LFA.

Why are Lfas so rare?

Why It Was Only in Production for Two Years. Lexus built just 500 examples of the LFA—436 “regular” models and 64 Nurburgring Package variants—between 2010 and 2012, 190 of which were for the US market. The decision to keep the production run so low appears to have been intentional.

Did Lexus lose money with the LFA?

Two decades after the LS went on sale, Lexus rolled out the automaker’s first and only supercar thus far. The program is rumored to have cost approximately $800 million, and – as you might already know – each and every single example of the breed was sold at a loss.

Is a Lexus LFA worth it?

The LFA offers incredible performance, yes, but not the best – especially at this price. You can actually get better acceleration from a Porsche 911 Turbo and Nissan GT-R, each of which cost a fraction of the LFA price and are far more available than the Lexus.

What is the cheapest Lexus LFA ever sold?

Q: What was the most expensive Lexus LFA ever sold? A: The highest recorded sale was $1,875,000 for a 2012 Lexus LFA Nürburgring Package on Nov 17 2023. Q: What was the lowest recorded sale price for a Lexus LFA? A: The lowest recorded sale price was $352,000 for a 2012 LEXUS LFA on Apr 13 2019.

How much does the Lexus LFA cost when it first came out?

$375,000
Production began in December 2010. Only 500 total cars were made for worldwide markets, with only 20 produced each month with a base price of $375,000 (£340,000).

Why no one bought Lexus LFA?

The Lexus LFA was a two-door sports car that was as immensely stylish as it was powerful. It had a lot of potentials but it was simply too expensive. Toyota famously lost money on each and every one of the 500 LFAs it made despite selling them for an eye-watering $375,000 each.

What makes Lexus LFA so expensive?

With a production run of just 500 units over two years, the Lexus LFA is an extremely exclusive piece of automotive history. One of them (chassis number 184 of 500) recently traded hands via Bring a Trailer. The winning bid was a whopping $808,000 USD, or approximately $997,000 CAD at the current exchange rate.

Why did the Lexus LFA flop?

With its price set over $375,000 initially, and its current average price of $807,512, the LFA ended up preventing most of its audience from even considering purchase. Coupled with the poor timing of its release, competitors like the Nissan GT-R R35 had already claimed its place as a top Japanese supercar.

Why did Lexus discontinue the LFA?

To put it rather bluntly: The LFA was discontinued because it didn’t sell well enough. When they were new, the LFA’s supercar performance had a price to match. Per Motorweek, the LFA they tested had a price tag of $376,500. That is more than 10 times the cost of the current Lexus UX SUV.

How did Toyota lose money on the LFA?

The LFA had a starting price of $375,000, and even at that price, Lexus was losing money on each one that they sold because of the amount of money that went into the research and development for it. Once all 500 Lexus LFAs were sold Lexus never made another one.