"We see a couple of entry points with this car," Peacock says. "The 'move-ups' -- these are people buying a luxury vehicle for the first time, who are moving up. And then we see some people moving over or moving down -- and these are people who are already established luxury car owners who want a smaller vehicle or a sportier vehicle. Or a big SUV owner who doesn't want an SUV anymore." Lexus wants IS350 drivers with an average household income of $120,000 annually who are less than 45 years old. The sales price ranges from $40,375 for rear wheel drive to $42,610 for all-wheel drive. The vehicle is designed to compete with the Audi A4, Mercedes C class and BMW 3 series. Automotive industry analysts say Lexus does well holding its own in this automotive segment. "The IS350 is perfect for a luxury lifestyle person. That's really what it's more about," says Nelson Ireson, senior editor at MotorAuthority.com. "It's very comfortable. It's sporty enough and has some great features, especially for the value." The Lexus IS350 comes in a few thousand dollars cheaper then its target competition, Ireson says. And the car's interior has been improved dramatically from previous generations.