HEARD the one about the man who hides his '09 reg luxury executive model in a garage and drives a three-ear-old model instead? Well the story is true, Lexus tell it.

These cash-strapped days are not for showing off which leaves car makers like Lexus in a bit of a quandary. Everybody who buys a Lexus likes to show it off and they rightly justify their purchase as a good investment in car terms because of the excellent residual values and the virtually non-existant repair bills.

Buy a hybrid Lexus and you can hold your head really high because their new wave of models are now lower in price as they are ultra eco-friendly, attract low taxes and can be as fuel efficient as the average family car.

So enter the new RX 450h which replaces the RX 400h. It arrives here in August and is now referred to as a crossover vehicle to get away from the nasty SUV tag. It starts off by having a 10 per cent increase in engine power, a 23 per cent reduction in fuel consumption and a big reduction in C02 emissions thanks to a new generation of hybrid-drive technology. The 3.5 litre-V6 petrol engine and two strong electric motors which work in tandem with the engine make it a frontrunner in fuel efficiency in the luxury car range. In mixed driving it can return 6.3 litres for every 100km covered according to Lexus test figures – a figure one can associate with 1.6- and two-litre cars with air conditioning.

The Lexus comes with climate control and automatic transmission and even with these energy-sapping devices the low fuel figures combined with low 148g/km of C02 emissions places it very much in the eco-friendly car bracket.

The low emissions put it in the Band C for road tax which costs just €302 a year, a figure that would have been over €1,000 in the days when road tax was calculated on engine horsepower alone. The fuel and emission figures are excellent for a big luxury vehicle that is now 10mm longer, 40mm wider, 15mm higher and has a 20mm longer wheelbase than its predecessor.

And the price is now €62,000 for the Executive model and €68,400 for the Sport version. The Executive trim includes leather-heated and motorised seats, Bluetooth technology, a nine-speaker audio system, parking aids and the Sport version gets a navigation system.

Also available is a heads-up display on the windscreen which shows current speed and navigation information. This is a huge safety feature as one does not have to take their eyes off the road. Acceleration is good and comfortable cruising speeds would take you well over the national motorway speed limit.

Behind the wheel the steering is light and sensitive and seating is strong and supportive. The high driving position gives a good view and the cabin is extremely quiet. The only intrusion is wind noise at high speeds coming from the huge wing mirrors.

Lexus plans to sell 100 RX 450h models this year and next in an SUV market that is down 90 per cent this year.