Lexus expands Encore program; adds full-service lease ‘usership’ option for LBX

Lexus Australia has introduced two new ways for customers to spend time in more of its products without committing to new vehicle ownership.

Encore Elevate is the new arm of the brand’s Encore services and allows owners of any Lexus vehicle in Australia the option of paying $1899 per year to access benefits such as the use of L series vehicles twice a year, valet parking vouchers, and exclusive event invitations.

The other way in is targeted at younger buyers, with the brand offering a full-service lease option exclusively for the new LBX small SUV. Similar to Toyota’s option for the bZ4X electric vehicle though the LBX’s offering will be more flexible, with terms between one and five years.

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What is Lexus Encore Elevate?

It’s similar to Encore Platinum, but available to owners of all Lexus vehicles.

Platinum level remains exclusive to buyers of brand-new L flagship products (LS, LM, LC, LX) and is complimentary for three years.

Encore Elevate can be purchased by any owner of the circa 150,000 Lexuses in Australia providing it was sold new through a local dealer. You could be the first, second, third, fourth, or more owner and pay $1899 for the benefits detailed below.

• Use of the Lexus on-demand fleet twice yearly for loans up to five days
• Four valet parking vouchers at select shopping centre
• Two airport lounge access vouchers valid at over 800 locations worldwide
• Invitations to exclusive events

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The Lexus on-demand fleet currently comprises more than 50 vehicles including various LC, LX, LM (varies by state).

Encore Elevate isn’t as comprehensive as Encore Platinum, which offers four yearly uses of the Lexus on-demand fleet with loan periods up to eight days, and eight valet parking vouchers.

Lexus Australia chief executive John Pappas told Wheels “The feedback we've been getting from [Encore Platinum] customers has been ‘how do I get more access to these ownership benefits that you’ve given me’”, which is where the idea evolved.

The next step is about “learning”, and “how customers perceive benefits” according to Mr Pappas who added: “In time, we want to tailor and personalise those experiences to our customers.”

“Because Lexus is all about amazing experiences. And it's not about your car or your journey, it's about your lifestyle as well… we’re not about a transaction, we’re about a life with Lexus”, added Mr Pappas.

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What is a full-service lease and why does Lexus offer it?

Previously it’s predominantly been a choice between cash, personal finance, or novated lease options for new-car buyers however – like application subscriptions – the landscape is changing.

Lexus has chosen the LBX small SUV to launch its first full-service lease plan, where the customer pays a monthly fee for a period between 12 months to five years to cover the car, maintenance, registration, and insurance with a fuel card optional.

At the end of the lease the user can choose to hand the vehicle back, renew the lease, or look at another option all without owning the vehicle. The LBX Luxury starts at $47,550 before on-road costs, and Lexus is yet to detail full-service lease pricing (though it varies greatly depending on length of lease, kilometres driven, and other factors).

Mr Pappas emphasised that this option is not for everyone, and nor is it compulsory.

“We know that usership is a lot bigger now and it's trending up. The whole flexibility of not having to buy a car and own it and all the rest of it – not having to go and pay for maintenance etc. – is a really strong trend coming.

“[With the LBX full-service lease], we're trying to learn whether there's appetite and what we can do in the space with a younger demographic coming through that doesn't have to commit to the vehicle and the whole ownership of the vehicle, they just pay a monthly lease that's fully looked after”, said Mr Pappas.

The LBX small SUV is the new hybrid-only entry point. The car will be available at dealers imminently and our road test will go live on Thursday 28 March.