Lexus LS500H vs Rolls-Royce Ghost

What's the difference?

Almost 30 years after Lexus launched its original LS flagship sedan, the fifth generation of the car has arrived in Australia in what appears to be the brand’s never-ending battle to hunt down and beat Mercedes-Benz, BMW and Audi at their own game.

In some markets it looks as though Lexus is making headway. In the United States last year Mercedes-Benz was the best-selling luxury brand, followed by BMW and then Lexus. To give you even more insight, 50 per cent of all Lexus sales globally are in the US.

The story is different in Australia, with Lexus hardly a threat to the big three Germans, selling about a third less each month.

The Lexus LS is the Japanese prestige brand’s flagship and comes with a price that nudges up against formidable rivals. There’s the Mercedes-Benz S-Class, BMW 7 Series and Audi’s A8. Only the best cars from a few of the best brands in the world – no pressure, Lexus.

This may even be a reason to buy one – in that it’s not one of the traditional three. You could see Lexus as the popular underdog that in some ways does a better job than the usual suspects. A people’s favourite perhaps?

Just look at how often it’s mentioned in songs. According to lyrics.com.au the word Lexus has been used in 873 songs. Meanwhile Mercedes Benz appears in 500, Audi in 402 and BMW in 307.

With all this in mind we headed to the Australian launch to drive the LS 500 and its hybrid twin the 500h.

It’s finally happened: Rolls-Royce has become so divorced from the everyday world of common folk that it's no longer even sharing the previously agreed meanings of words. Rolls has its own meanings, possibly its own language, which must be spoken with a plum on the tongue.

They’ve been heading here for a while. For example, at Rolls, “affordable” means the car we're driving today, the Rolls-Royce Ghost Series II, which is yours for just $680,000 (an indicative price, bumping to $800K for the Black Badge). And “iconic British marque” means, obviously, “BMW bought us in 2003, so there might be some German bits”.  

It turns out that “driver-focused” means something different at Rolls-Royce, too. Thanks to a smattering of chassis innovations, Rolls says this updated 2025 Ghost is “the most driver-focused V12 Rolls-Royce ever”. Which is “a side of Ghost’s character that our clients increasingly and enthusiastically embrace”.

Don’t fall for it. The Ghost’s extra focus is not actually very focusy, and its additional dynamism is really only more dynamic in the way that a bed that could corner at all would be more dynamic than a normal bed. None of that matters. 

The reason it doesn’t matter is because the Ghost Series II is wonderful. Indeed, it is very nearly perfect. Which is a word that even Rolls won’t quibble over.