Why We Might Trade My Wife’s Excellent Gas Lexus RX For The Mediocre Electric RZ

Gas prices are high, and that has lots of folks making knee-jerk car decisions. I’m an enginerd, so I don’t do “knee jerk” (unless I find a holy grail, of course); I’m the kind of person who likes to run the numbers. So let’s dig into whether my wife (and I; we’re a unit, you see) should trade in her excellent 2017 Lexus RX350 for a vehicle that most car reviewers don’t like — a Lexus RZ450E.

The last-gen Lexus RX is a car that, I have to admit, I used to find a bit boring. But then, as part of a “One Car Challenge” in which my city paid my wife and me to drive only a single vehicle for a month, I started driving the Lexus, and I began to realize that a vehicle that fulfills its intended function this well is worthy of respect.

Here’s what I wrote after I drove my wife’s car for a few weeks:

The leather seats are comfortable and feel durable — they’re heated, cooled, and power-adjustable with memory function. They’re excellent seats in an excellent cabin in a car that floats quietly like a magic carpet…

It’s an excellent car, and Lexus should be commended for building something that perfectly aligns with what [my wife] and so many other consumers are looking for: The ultimate no-bullshit luxury SUV. That’s what the Lexus RX350 is. You buy it, you’re comfortable, you’re confident, you’re safe, you rarely have to worry about significant mechanical issues, the dealership will give you a great service experience (my girlfriend actually enjoys going to the Lexus dealer, which says a lot about what Lexus is doing right), and the car just demonstrates its competence every time you’re behind the wheel. It fades into the background, and lets you live a life where cars are not at the forefront.

I wrote that review two years ago, and to this day I maintain that her car is excellent. The only major issue we have had are the front brake rotors, which are hideously warped after being changed only two years ago. But that’s not the car’s fault, that’s the fault of whoever did the repair. [Checks notes; oh crap, that was me using Advance Auto Parts components!].

Anyway, we find ourselves deciding whether or not we want to trade in this magnificent machine, not because gas prices are high, but because my wife, Elise (not her real name), likes the idea of going electric after driving around my i3, and she would like something newer.

In The Eyes Of Many, The Lexus RX Is The Hero, The RZ Is The Zero

If you read reviews of the fourth-gen Lexus RX, you’ll see a lot of journalists singing the car’s praises, just as I did. But if you read reviews of the Lexus RZ — Lexus’ first electric vehicle — you’ll see the opposite. People deride it. And the reason, primarily, is the range, which sits below 200 miles for the RZ450E on 20″ wheels. In the winter, 150 might even be a stretch.

This may have you a bit confused. David, why would Elise ever think about trading a universally beloved SUV for a universally loathed one that, by the way, is actually a bit smaller?

Well, hear me out.

An EV Might Be The Cheapest Way To Upgrade To A Newer Car

Rather than fearing the Lexus RZ’s range limitations, I think my wife and I can actually take advantage of them. Specifically, I think we can leverage the RZ’s dramatic drop in resale value — something that seems rather common for modern EVs sold in the U.S. — in our favor, especially considering our lifestyle that works well with even a mediocre-range EV.

Check out the two depreciation curves above from Car Edge. The first is that of an RZ, the second is that of an RX350. Despite being nine years old, Elise’s $50,000, nine year-old Lexus’ value is somehow not that far off the value of a $60,000, three-year old Lexus RZ — largely because the RX’s curve not only lacks that initial steep drop, but also features a shallower slope over the span of 10 years.

She’s been offered over $20,000 for her car, while Lexus RZs are trading all day for between $27,000 and $30,000:

Being able to trade a 2017 gas SUV for a certified pre-owned 2023 electric SUV (with a six-year, unlimited-mile warranty) from the same brand without having to pay even $10,000 is pretty remarkable. And yes, the RX is a bit bigger inside, but it’s not that much bigger.

Still, $10 grand is nothing to scoff at, and it’s worth analyzing whether it’s worth it. The goal with the RZ is twofold: 1. My wife wants a new car. Some of that has to do with her car’s lack of modern infotainment (it has only basic Bluetooth capabilities with no CarPlay or Android Auto), and some of that may have to do with the car just feeling old for aesthetic or other reasons. To be honest, I’m not entirely sure I fully understand the desire for a newer car if that desire isn’t based on specific features, but I also buy a new junker every few years, so who am I to judge? The second reason we’re considering the RZ is that we have a Level 2 charger at home, and she’s a stay-at-home mom with no commute, so we’d like to avoid having to spend money on gas and maintenance.

So let’s just dig into those two reasons and see if the RZ makes sense.

The RZ: A Huge Step Up In Modernity For Shockingly Little Money

Viewed through the eyes of a Lexus fan for whom range isn’t a huge concern, the RZ seems like an amazing proposition. Here’s a look at the Lexus RX’s cabin:

And here’s the RZ’s:

The RX’s cabin was developed for the 2016 model year, and I have to hand it to Lexus — it still looks nice, and its standard “PRNDL” shifter works well while offering no discernible disadvantage over the RZ’s rather large dial+button shifter. As for features, the RX has Adaptive Cruise Control, Heated and Cooled Seats, Lane Departure Alert, a nice 12.3-inch color display, but a fairly primitive infotainment system that allows for Bluetooth connectivity to a phone, and a super basic backup camera. Here’s a look at the vehicle’s infotainment screen:

Meanwhile, the Lexus RZ features a lot more active safety features that annoy the everliving bejesus out of both my wife and me (constantly beeping and booping all over the place), but crucially, it has a great 360-degree camera and a 14-inch infotainment screen that comes equipped with Apple CarPlay.

Now, this might lead you to say: “Well, why not just get the RX detailed and upgrade the infotainment system?” That’s a good point, and after talking with our resident infotainment nerd, Thomas, I learned that there is a kit that would upgrade the RX to have Apple Carplay:

$600 to bring a nine-year-old car into modernity? Seems like a good deal, because powertrain-wise, the Lexus’s V6 and eight-speed automatic seem modern enough for a gas, non-hybrid car.

What’s more, this would fix my wife’s biggest complaint with her RX, without adding all the fussiness of the RZ’s infotainment system. From my RZ review:

And in many ways, the RZ feels just like an electric version of her RX. The ride quality is exceptional, the cabin is quiet as a confessional, the seats are cushy, every surface feels high-quality, front visibility is great, the seating position is high enough, acceleration is decent — it hits all the high spots a traditional Lexus driver would want. But sadly, I think the infotainment system falls short.

Notice how there are only a few physical buttons — two climate control temperature dials, a volume dial, a couple of defrost buttons, a park assist button, and a camera button. For conservative, well-heeled (and usually older) Lexus buyers, this just seems like a misstep. Which 30 year old is buying this Lexus RZ whose technology is years behind the likes of Lucid, Tesla, Hyundai, and others? Nobody. This car is being purchased by people who drive Toyotas and other Lexuses; they want the vehicle to be luxurious, reliable, and simple to use. Maybe I’m wrong and Lexus has customer clinic data that disagrees with me, but it seems to me that the last thing a Lexus owner want is to have to deal with all the controls being on a touchscreen, a shifter that require a how-to video, and a bunch of beeping and booping electronic nannies.

What About The RZ’s Running-Cost Savings?

Now let’s talk about the money side of things. To trade Elise’s $20,000 RX for, say, a typical 2023 RZ, would cost us $9000. But is it worth it? Ignoring all the emotions of it all, will we recoup these $9000 in savings somehow?

Let’s assume Elise drives 8,000 miles a year, which is a bit lower than average, but makes sense for the suburban lifestyle we’re living here outside of LA. Her RX, realistically, gets about 20 MPG around town, and with fuel at $5.50 a gallon and climbing, that means we’re spending $2,200 a year on fuel.

Meanwhile, energy prices sit around 25c per kWh, and the RZ can easily manage 3 miles per kWh. Again, assuming 8,000 miles per year, that’s 2666.67 kWh, which cost $666.67, for a savings of $1,533 annually in fuel costs.

Add maintenance to the gas car, factor in increased tire wear for the RZ (on 18-inch wheels), and factor in the RZ’s higher insurance costs and registration costs, and we’re probably saving about $1000 a year at least. If we own the car for nine years like we have her RX, then yeah, we basically make up the cost of buying the RZ, and all the while my wife enjoys a new car that has integrated CarPlay, a nice overhead 360-degree camera, drives incredibly smoothly, and is theoretically helping the environment a bit.

Of course, then there’s the resale side of the equation, and that’s where the business case for the RZ falls flat. It may save us money in terms of operating costs, but if in nine years Elise wants another car, that RZ is likely to be a fairly weak trade-in. In fact, I’d venture to say that, by 2035, her 18-year-old 2017 Lexus RX350 will likely be worth more than the 12-year-old RZ. How much more? I’m not sure. The longer we keep the RZ, the less that matters, because both vehicles will eventually be worth so little that the delta will be negligible. But my point is: Buying the RZ to save money may sound smart with high gas prices right now, but in reality, the numbers aren’t going to work out.

Still, Elise could significantly upgrade her daily driver to something she’ll probably enjoy driving more each day, and it’s basically going to be a negligible expense in the end, if any. And that alone has me convinced this is probably the right move, as I suspected it would be when the two of us went on a romantic birthday drive to wine country a few years ago. From that review:

 In a year or two, I bet these will dip into the $20,000 range. And Elise’s 2017 RX only has 42,000 miles on it; she should be able to trade that thing in for $20 grand at least:

All in, she’d pay probably less than $10,000 to upgrade from a 2017 to a 2023, she’d save money on running costs, and she’d finally have Apple Carplay and other modern tech. As someone who has a place to plug in at home, and who regularly commutes only a few miles a day, she just doesn’t need a gas car. The Lexus will be perfect for her; she became a fan after our Solvang trip (she didn’t find the bings and boops and nannies too bad), and assuming she enjoys driving it (I drove the whole trip) and the car keeps depreciating, why the heck not?

We’ll have to make sure the RZ’s size works for her, but the range shouldn’t be a concern, and I have no doubt she’ll be delighted driving electric all day, as I myself find it to be a lot more relaxing than commuting in an ICE car.

So we’re probably going to pull the trigger, though maybe we should do so soon, because if fuel prices keep rising, maybe RZs will actually appreciate a bit.