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What's the difference?
Honda built its four-wheeled automotive empire on the back of small cars, flying in the face of 1970s convention that bigger was better. As the ubiquitous Civic grew larger and larger, a niche for a smaller car appeared, and that niche was subsequently filled by the City in sedan guise, and the Jazz hatch that sits alongside it.
The buying public, however, is simply not as interested as it once was in small hatches and sedans, and Honda, along with other importers, is feeling the pinch when it comes to slumping sales for its smaller models.
But are we all missing out on something here? After all, the Thai-built City is priced from a rock-bottom $15,990 in base manual form – which is not a lot of money for a Honda.
We’re trying the range-topping, $21,590 VTi-L to see what we may have been missing.
In 15 years as a car reviewer there have been plenty of super luxurious cars and there has been plenty of people moving. But not many super luxurious people movers. Until now. Until the Lexus LM 500h.
This people mover costs a quarter of a million dollars. And if that caught your attention you probably also want to know what that buys you. My family and I found out when we lived with the LM 500h Ultra Luxury for a week.
Small sedan sales are on the wane, and as a result, the cars that remain in the market often aren’t the best in a brand’s lineup.
This is the case with the Honda City. While it’s got plenty of space for passengers and it’s economical, the performance of the drivetrain in terms of composure leaves a lot to be desired.
The underdone steering, too, makes the car uncomfortable for passengers more often than not, while the buggy, hard-to-use multimedia system is unforgivable in an almost-$22,000 car.
Put it this way… the larger, newer, more refined base model Honda Civic is tantalisingly close in price to the top-spec City, and we know which side of the dealership we’d be walking towards.
The Lexus LM 500h is luxurious, comfortable, practical, easy to drive and expensive. While it may appear to be the ultimate family car, with only four seats it's limited in terms of how many kids and their friends you can carry. On top of that, the privacy screen introduces accessibility issues to the kids you wouldn't encounter on other vehicles. If you are thinking of a Lexus people mover as your next family car I'd suggest looking at the LM 350h which has seven seats and no privacy screen. If you’re looking at a business class executive van the LM 500h would be perfect.
The City does a good job of disguising the fact that it’s a micro-sized sedan; at first glance, the revised front bar and grille that’s meant to mimic the one on the new Civic does such a good job that some people will need to look at the bootlid badge to find out it’s not a Civic.
A high waistline and a solid yet stylish sweep over the roof keep the City from looking overly twee, and even though the 16-inch wheels look a bit narrow, the overall impression is one of a larger car.
The interior, too, is spacious and airy, while the controls and steering wheel give the City an upmarket feel. There’s a little too much grey plastic inside, and hard plastics aren’t difficult to spot, but the City presents well, on the whole.
The LM 500h doesn't look real. More like a concept vehicle with its vertical face wearing that enormous grille. Feels like if you watched it for long enough you’d catch it transforming into some kind of robot. Yet, at the same time its styling is elegant and prestigious.
I have a confession to make. I used this Lexus as my office. Its interior is that comfortable and spacious. I'm also a parent and there were times where it was the quietest place to get some work done.
It also let me observe people's reactions as they walked past with their dogs not knowing what was going on inside behind those tinted windows. The people that noticed were clearly car enthusiasts as they knew what they were looking at and couldn't pass without gaping it awe.
The LM 500h’s interior is superbly plush with thick carpets, beautiful copper metallic trim and nappa leather seats.
As I’ve said, the cockpit up front is less luxurious than the extravagant first class section in the back behind that dividing wall.
And yes, I’ve seen large screens before but nothing that stretches the width of the vehicle.
Up front, the City is a great fit even for taller drivers, and its height-adjustable seat also means that the, err, less vertically inclined pilot can find a comfortable position behind the tilt-and-reach adjustable wheel.
A regular gear shifter and manual handbrake means the two cupholders are squashed under the centre console, but there are bottle holders in all four doors, as well as two more cupholders in the rear centre armrest in the VTi-L.
The VTi-L also gains two extra 12-volt accessory power points in the rear to complement the USB and a third 12V point up front, while the keyless entry system is not something you’d usually find on a car at this price point.
Sadly, the City’s multimedia system lets the side down - big time. Try as we might, we couldn’t connect a phone to our tester, no matter what we did, and it’s just utterly unintuitive to use in most situations.
It’s a bit of a rude shock, actually; most manufacturers have media systems sorted, but there’s simply not a even a half-decent one in any Honda that’s currently on sale. And there's no Apple CarPlay or Android Auto, though you can find those mirroring systems in the larger Civic.
Rear seating has adequate headroom – just – for taller teens, and there isn’t a lot of compromise required from front seaters to comfortably accommodate four people. Five? That’s getting crowded, but it can be done.
Two ISOFIX baby seat fixtures are present, along with three top-tether mounts. Boot space measures 536 litres - which is actually 12 litres bigger than that of the new Camry - while both rear seats fold flat(ish) to increase load capacity further.
A good point; the seats can be unlatched via boot-mounted buttons. A bad point; you still have to reach in and push the seats down by hand. A space saver spare nestles under the boot floor, as well.
You might be able to take Lexus out of Toyota but it's very hard to take Toyota out of Lexus and this particularly applies to the practicality of the LM 500h.
Every day I discovered new compartments, tray tables and storage areas. There are so many cabinets, lockers and hidey holes that we almost left my belongings (an entire family of plushie toy capybaras) behind because there are so many places to check.
Of course, I'm talking about the rear compartment here because up front there's not much storage. In fact, it proved to be quite a problem in that I had nowhere to put my bag with somebody sitting next to me and no area behind the front seats to stow it, either.
Talking of seats, the LM 500h only has four of them, with two up front and two in the rear. Up front, the seats are supportive and large, but the rear seats - those are, well... have a look at the images.
We’re talking two large captain's chairs that look as though they’ve been removed from the first class section of a plane.
And while this might be suitable for businesses shuttling a couple of executives to and from meetings, for a family, even with two children, the extra couple of seats a third row offers would come in handy.
The LM 350h has seven seats over three rows and no privacy screen. A far better choice for families.
For device charging there are USB ports up front and in the rear. There are wireless phone chargers for those in the back seats but not up front.
The LM 500h has a cargo capacity of 752 litres with all seats in place.
The top shelf VTi-L is the best of a two-model lineup, and costs $21,590 plus on-road costs. It comes with an 88kW 1.5-litre four-cylinder petrol engine and a continuously variable transmission driving the front wheels, as well as LED daytime lamps, a part-leather interior, push-button start and smart key, climate control air conditioning, 16-inch alloys and a 7.0-inch touchscreen multimedia system with sat nav and Bluetooth phone and audio streaming.
It also has a leather-bound steering wheel and gear shifter, and map pockets on both seat backs.
It does miss out on a lot of other stuff, though, including Apple CarPlay and Android Auto capability, automatic lights (remember when a car last beeped at you to turn off the lights? Me neither...) and automatic wipers, and it also misses out on driver aids like auto emergency braking (AEB).
It starts to look a bit dear when you look at similarly priced cars - even from the next size sector up - that do offer inclusions like AEB and automatic headlights, though the small sedan is a bit of a rarity in the Aussie market now.
Its only like-for-like rivals in the space are the Mazda2 sedan and the Hyundai Accent sedan. Other potential competitors like the Ford Fiesta sedan and, more recently, the Toyota Yaris sedan have been deleted from local line-ups after years of declining sales, while the subsequent rise of the compact SUV will continue to have an impact on the so-called 'light car' market.
The Lexus LM 500h sits at the top of its range and is without a doubt one of the most expensive people movers on Earth with its list price of $220,888.
As you would imagine the standard features list is as extensive as it is extravagant.
For starters, while the regular LM 350h has two rows of seating in the rear (seven seats all up, including the front two), the 500h has the third row removed and just two super luxurious and enormous fully reclining seats fill the entire space. It’s like a theatre back there.
That theatre theme keeps going with a media screen in the back so large it stretches the width of the vehicle. Seriously, it's a 48-inch screen to watch movies or connect to your device.
The sound system is probably the best I’ve experienced - a spine tinglingly incredible 23-speaker Mark Levinson set-up.
What else can I tell you? Those rear seats are upholstered in beautifully soft semi-aniline leather. They’re heated and ventilated with a massaging function and... ridiculously comfortable.
There’s four-zone climate control, windows which have an electronic shade that turns the glass opaque, there are wireless phone chargers in the doors and carpet throughout so thick you sink down into it as you step inside.
Our LM 500h was upholstered in the 'Solis White' leather which also brings contrasting and mesmerising copper metallic trim.
Oh, and there’s a wall with an electric glass screen that can be raised or lowered to separate the rear passengers from the driver.
I should have mentioned this earlier. The kids loved it, but these parents spent a lot of time telling the 10- and three-year old not to put the screen up again.
The rear occupants, aka the kids, can also lock the screen in place. Which they did, and so sound proof is the dividing wall that we can only just hear their uproarious laughter.
Up front, the cockpit is comfortable but it’s clear all the space and luxury is for those being driven around.
Still, the front seats are leather with heating and ventilation, there’s a 14-inch media screen and 12.4-inch digital instrument cluster, plus a head-up display. Sat nav, Apple CarPlay and Android Auto are also standard.
The i-VTEC four-cylinder 1.5-litre single cam engine is naturally aspirated, and it makes its 88kW at a high 6600rpm, while its modest 145Nm of torque peaks at 4600rpm.
It means the CVT gearbox needs to work pretty hard to get the best from the engine, which has been superseded by a twin-cam version in other markets.
The LM 500h is a petrol-electric hybrid with a 2.4-litre four-cylinder turbo-petrol engine which makes 202kW/460Nm and works in concert with two electric motors.
The front motor makes 64kW/292Nm and the rear makes 76kW/169Nm. The combined maximum power output of the two motors and the petrol engine is 273kW.
The LM 500h is all wheel-drive and has a six-speed automatic transmission.
The underdone performance does offer a benefit at the petrol pump, with the City returning a claimed 5.9 litres per 100km on the combined fuel economy cycle.
A 320km test loop netted us a dash-indicated figure of 6.3 litres per 100km, which is impressively close.
The 40-litre fuel tank is happy to accept standard unleaded petrol, too.
Lexus says after a combination of urban and open roads the LM 500h should use 6.6L/100km. In our own testing we found consumption was higher at 9.4L/100km.
Worth noting my driving environment was mainly a hilly suburban one filled with school drop offs. Achieved some personal bests this week, with one long run to Sydney’s outskirts, only to return in nightmarish peak hour traffic.
Premium (95 RON) fuel is required and the tank size is 60 litres. In theory the driving range is a smidge more than 900km, which drops to around 640km using our real-world average.
Weighing just 1100kg, you’d expect the 1.5-litre powered City to have a bit of get up and go… but unfortunately it’s already gotten up and left by the time you drive off.
The 1.5-litre naturally aspirated engine is a carryover unit from the previous generation, and it feels like it, too. It’s also teamed with a CVT gearbox that isn’t a patch on more up-to-date trannies from the likes of Subaru and Toyota.
On any sort of incline, the CVT ups the revs of the engine to a point between bloody annoying and mildly painful, too. The VTi can be ordered with a manual gearbox, which has to be better than the CVT in this example.
The underdamped suspension tune is adequate for light duties around town, but the electric steering feel very odd underhand, especially at the very beginning of a turn.
There’s a big initial motion at the front wheels when you start to turn which then quickly tapers off, meaning that you have to be ultra precise with your steering to prevent the City from lurching into the corner and falling over its soft suspension.
On light throttle, with no hills and few corners, though, the City is just fine…
Quite simply, driving the LM 500h is like piloting a limousine on stilts. Superbly comfortable, but with an elevated driving position that offers outstanding forward and side visibility, the LM 500h is an easy vehicle to drive for long periods of time.
A digital rear vision mirror means visibility behind is good and unobstructed by the privacy screen or the seats.
The drawbacks are down to the lack of space up front, with the driver’s chair limited in its ability to recline or slide back due to the bulkhead behind it.
And that's compounded by the lack of cabin storage for bags if the front passenger seat is taken.
As for the rear passengers there aren't many people movers offering this level of comfort, except perhaps the Zeekr 009.
Variable suspension that adjusts continuously keeps the vehicle composed and provides a high level of comfort for those in the rear. At the same time, the LM stays nice and flat through roundabouts while remaining civilised over speed bumps.
And then there's the acceleration, which, while not supercar-like is incredibly brisk for a van. The all-wheel drive system provides outstanding traction in wet and slippery conditions, too.
Our family used the LM daily for everything from school runs to shopping trips and weekends away and not only was it fun to drive, our lucky rear passengers enjoyed sitting high and being able to see clearly out their windows along with the luxury of a giant movie screen.
As mentioned, the City misses out on AEB and other driver aids, but does offer emergency brake assist and emergency flashing brake lights, as well as hill-start assist.
Full-length curtain airbags are offered along with dual front and front side 'bags, and there's a reversing camera. The City holds a maximum five-star ANCAP rating, which it has had since it was tested back in 2014.
The Lexus LM 500h is yet to be tested by ANCAP so it doesn't have a safety assessment score. There is, however, a high level of safety tech onboard including AEB which can detect pedestrians, cyclists, motorcyclists and other vehicles, emergency steering assist, lane keeping assistance, road sign recognition, rear cross-traffic alert, front and rear parking sensors as well as six airbags.
For child seats there are ISOFIX points and top tether anchor mounts on the two rear seats. We have a forward facing child seat and found it easy to install.
A space-saver spare wheel is located under the boot floor.
Honda sells the City with a five-year, unlimited kilometre warranty, while a no-catch seven-year, unlimited kilometre warranty is occasionally offered with its cars, along with premium roadside assistance for the life of the longer warranty.
Both warranties are also transferable to the next owner, should you sell your car before the warranty expires.
A fixed-price servicing regime is in place for the City, too, starting at $259 and peaking at $297. But Honda asks for the City to be serviced every six months or 10,000km, which does add to the cost of running the car.
Lexus covers the LM 500h with a five-year, unlimited kilometre warranty.
The Lexus Encore Platinum program is complimentary for LM owners for three years, providing 24-hour roadside assist, a loan vehicle or pick-up/return service at service time, 'On Demand' vehicle evaluation options, valet and airport parking benefits as well as exclusive offers and event opportunities.
Servicing is recommended annually or every 15,000 kilometres, and impressively, pricing is capped at $695 per service over five years.