Lexus slashes RZ price ahead of luxury car tax changes
Lexus has cut the price of its all-electric RZ by up to £7,000 in a bid to broaden its appeal.
The RZ range now starts at £48,365 and every model equipped with the entry-level 350e powertrain now falls beneath the updated Expensive Car Supplement (ECS) threshold.
The so-called “luxury car tax” is due to change in April, with the threshold increasing from its current £40,000 to £50,000 for EVs. With the change backdated to April 2025, any car ordered now will also enjoy the exemption from the additional £425 annual levy.
The biggest price reductions are on the 350e models. These use a 221bhp front-mounted motor to deliver 0-62mph in 7.5 seconds and a range of 353 miles. Reductions across the Premium and Premium Plus grades vary from 10% to 14%, representing savings of around £7,000 on the 350e Premium Plus with 20-inch wheels and bi-tone paint.
The cost of the more powerful RZ 500e has also been reduced by between 4% and 6%. Prices for the 376bhp all-wheel-drive version now start at £56,295 for the Premium model on 18-inch wheels and top out at £62,845 for the range-topping Takumi grade with bi-tone paint.
Sadly for performance fans, the price cuts don’t extend to the 402bhp RZ 550e, which still costs between £67,795 and £71,095.
Lexus says that as well as cutting initial costs for cash buyers, the changes will offer reduced monthly payments for customers using finance and should offer reduced Benefit in Kind tax bills for business users.
Chancellor Rachel Reeves announced in her autumn Budget that the threshold for the ECS was moving in acknowledgement that EVs often have a higher purchase price than ICE models. Even mainstream family EVs such as the Skoda Enyaq or Toyota bZ4X currently fall foul of the “luxury” tax in most specifications.
