Lexus RZ Drops Up to $42,000 — Is It Finally Worth a Look for WA Buyers?

Lexus has made a bold move with the 2026 RZ, slashing up to $42,000 from the electric SUV's list price while actually upgrading the hardware underneath. For WA buyers who've been watching the EV market mature from the sidelines, this is the kind of repositioning that earns a second look.

The updated RZ Luxury now starts from $84,500 before on-road costs — down from $123,000 at launch in 2023. That's a serious correction, and it lands the RZ beneath the Luxury Car Tax threshold for zero-emission vehicles, which means novated lease customers can access the Fringe Benefits Tax exemption. If you're running a novated lease through a WA employer, that alone could make this a genuinely competitive proposition.

What You're Actually Getting for the Money

This isn't a stripped-out fire sale. The 2026 RZ brings a larger battery, improved driving range, more powerful electric motors, faster home wallbox charging, and increased braked towing capacity compared to the outgoing model. For Perth drivers doing the daily Fremantle-to-Joondalup run or longer hauls down to Margaret River, the improved range is welcome — though at 460km WLTP, you'll want to plan carefully if you're heading to Kalgoorlie or up to Broome.

There's also a new F Sport grade from $105,000, which brings Australia's first production 'yoke' steering control — the aircraft-style bar in place of a traditional steering wheel — connected to a steer-by-wire system. It requires around 200 degrees of movement to go from centre to full lock, which takes some getting used to but eliminates hand-over-hand turning. The F Sport also adds a simulated eight-speed manual drive mode, similar to what Hyundai does with the Ioniq 5 N.

A limited-edition RZ600e F Sport Performance is coming later in 2025 in extremely limited numbers, with pricing still to be confirmed.

Honest Expectations — and Real Competition

Lexus Australia isn't pretending this will outsell the Tesla Model Y. The brand sold just 215 RZs in all of 2024, and only 41 in the first part of 2025 during the model changeover. Lexus says it expects to "well and truly exceed" that 215-unit result across the remaining seven months of 2025 — which sets a relatively modest bar.

The RZ is still up against stiff competition, and it's only going to get tougher. The BMW iX3 launches from $109,900, the Volvo EX60 from $86,990, and both are offering WLTP ranges of up to 805km — nearly double the Lexus. For WA drivers who regularly cover the kind of distances that make range anxiety a real concern rather than a theoretical one, those figures matter.

On the plus side, the RZ undercuts both the EX60 and iX3 at launch price, and significantly undercuts the Audi Q6 e-tron (from $99,900). If the Lexus badge and build quality appeal to you and your driving is primarily Perth metro or short regional runs, the value equation has shifted meaningfully in the RZ's favour.

One trade-off to be aware of: the premium ownership perks that came with the original RZ — free home wallbox installation, three years of free Chargefox public charging, airport lounge access — are gone. The 2026 model reverts to the same Lexus Encore membership offered across the standard range. With WA's public charging network still developing outside the metro area, that free Chargefox access would have been handy. It's been removed on the basis that more buyers now come to EVs with charging sorted — fair enough, though worth factoring into your total cost of ownership.

With WA fuel prices consistently among the highest in the country, the running cost case for going electric remains strong. If the Lexus RZ has been on your radar, the 2026 update is the most compelling version yet.