Lexus slashed prices on its all-electric RZ by up to £7,000 to boost sales and help more buyers avoid the luxury car tax.
The RZ range now starts at £48,365. Every model with the entry-level 350e powertrain sits below the updated Expensive Car Supplement threshold.
The so-called “luxury car tax” changes in April. The threshold jumps from £40,000 to £50,000 for electric vehicles.
Cars ordered now get exempted from the additional £425 annual levy since the change applies retroactively to April 2025.
Biggest Savings Hit Entry Models
The 350e models received the steepest cuts. These use a 221bhp front-mounted motor that delivers 0-62mph in 7.5 seconds and offers 353 miles of range.
Price reductions on Premium and Premium Plus grades range from 10% to 14%.
The 350e Premium Plus with 20-inch wheels and bi-tone paint saves buyers around £7,000.
All-Wheel-Drive Models Get Smaller Cuts
The more powerful RZ 500e also dropped between 4% and 6% in price. The 376bhp all-wheel-drive version now starts at £56,295 for the Premium model on 18-inch wheels.
The range-topping Takumi grade with bi-tone paint costs £62,845.
Performance fans miss out on savings. The 402bhp RZ 550e still costs between £67,795 and £71,095.
Finance and Business Benefits
Lexus says the changes reduce initial costs for cash buyers. Finance customers get lower monthly payments.
Business users should see reduced Benefit in Kind tax bills.
Chancellor Rachel Reeves announced the threshold change in her autumn Budget. She acknowledged that electric cars often cost more than petrol and diesel models.
Mainstream family EVs like the Skoda Enyaq or Toyota bZ4X currently trigger the “luxury” tax in most specifications.
