The expensive hybrid car that has fallen in value to an incredible bargain

Hybrid cars have traditionally suffered from poor depreciation rates compared to their ICE counterparts, but in recent years we have seen these models benefit from better value retention, thanks to better reliability and greater awareness among American consumers. Due to the increase in fuel costs, these more efficient models are also popular raw materials. Prices for new hybrid cars have risen steadily, but many options currently listed in multi-brand catalogs have become relatively inaccessible options, even if looking at entry-level monikers.

The now defunct Lexus LS500h hybrid is an example of a luxury gasoline-electric sedan that suffers from significantly low value retention, making gently used models incredible bargains. It’s worth noting that a two to three year old model is still quite an expensive proposition, but compared to what they cost new, these are very competitively priced options that offer an impressive balance of performance and efficiency, without sacrificing quality, an extensive standard specification and almost unparalleled levels of comfort.

To provide the most accurate and up-to-date information, this article uses data sourced from various manufacturers and trusted sources.

The Lexus LS Hybrid is every used buyer’s dream

A 2023 Lexus LS 500h will probably cost you somewhere between $64,696 and $78,662 JD power highlighting that most models retail for $71,550. Granted, this is a high price to pay for a vehicle, but this was a $113,485 luxury sedan when it was new, just under two years ago. Luxury sedans generally have difficulty maintaining their value. Throwing a hybrid powertrain into the mix doesn’t really help the cause.

iSeeCars indicates that this model will lose another 50.3 percent or $57,991 of its value over the next five years, which would bring the price down to what you would pay for a new Toyota Camry. Edmunds indicates that this model will cost you $84,481 to own over five years and 60,000 miles, including $33,549 for depreciation, $8,796 for maintenance, $2,155 for repairs and $11,500 for fuel. AutoEdge indicates that the same model will cost you $109,608 over the same period. $60,611 of this represents depreciation, $8,885 for fuel and $2,635 for maintenance.

A truly underrated luxury sedan

The motivation for Lexus to pull the plug on the LS hybrid in the US market is due to its incredibly low sales performance. In its last year of sales, the Japanese brand confirms that it sold only 94 individual units and 107 in 2023. This is even less than the very niche and much less practical Toyota Mirai. The main reason for this is that the premium over the ICE model simply didn’t justify the improvement in performance and efficiency.

That said, there aren’t that many consumer reviews we can turn to to give you a clear idea of ​​how well it’s being received. However, many specifications are similar to the ICE model, which has received many positive comments from existing owners. The 2023 model year currently has a review score of 4.1/5 stars, with 55 percent of the 49 reviews being a full five-star rating.

Notable strengths include a high-quality and well-equipped interior, impressive comfort levels and exceptional reliability and build quality. Notable drawbacks include a finicky infotainment system and a distinctly poor value retention performance.

A hybrid business class lounge for on the go

Lexus only sold the LS 500h in one set specification, with an extensive list of standard features. This includes a 24-inch integrated heads-up display, the 23-speaker Mark Levinson surround sound audio system, wireless Apple CarPlay and Android Auto, and a wireless smartphone charger. Additional standard features include:

• Heated leather-wrapped steering wheel with paddle shifters

• 16-way power-adjustable, heated and ventilated front seats

• Electrochromic auto-dimming interior and exterior mirrors with entry lighting

• Two-zone climate control

• Electric rear sunshade and electric moonroof

The highlight of the LS Hybrid’s standard equipment is the Lexus Safety System+ 2.5 package, which includes a blind-spot monitor with rear cross-traffic alert and parking assist with automatic braking. The cabin also benefits from a 10-airbag configuration in the event of a crash.

354 hp at your disposal

The Lexus LS 500h has a identical drivetrain as the LC 500hwhich was also terminated due to equally poor sales performance. This powertrain consists of a 3.5-liter V-6 with two electric motors that together deliver 354 horsepower to the rear wheels via the Lexus Multistage Hybrid Drive eCVT, paired with a four-speed torque converter automatic with 10 integrated synthetic shift steps.

Specifications Lexus LS 500h 2023

25 MPG on the combined cycle

According to the EPA, the Lexus LS 500h doesn’t quite match the rest of the car Toyota hybrid catalogue in terms of efficiency, but in the context of a performance HEV it’s not that bad at all. The agency says you can expect 22/29/25 MPG on the city/highway/combined cycle, while the 22.2-gallon tank and 1.1 kWh battery can get you good for 555 miles between fill-ups. Based on this, you can expect to spend $4,000 more on fuel over a five-year period compared to the average new vehicle sold in the US. You can also expect to spend $2,400 on gas each year, $3.98 to drive 25 miles and about $88 to fill the tank.

Fuel Efficiency Specifications 2025 Lexus LC Hybrid

The LS 500h’s unique Multistage Hybrid system combines a… traditional hybrid continuously variable transmission with a four-speed automatic transmission, aiming to create a driving experience closer to a performance car than a conventional hybrid. Instead of relying solely on an eCVT, Lexus throws in a physical four-speed torque converter. The eCVT handles the power mixing between the engine and the electric motors, while the automatic transmission multiplies the available ratios, effectively giving the system ten different shift steps.

This design reduces the rubber band feel common to hybrids and delivers sharper, more immediate acceleration with smoother power delivery. The result is a strong low-end torque range, efficient highway cruising and greater driver involvement, making the car feel more like a conventional luxury sedan than a traditional hybrid.

Factors contributing to the LS Hybrid’s poor depreciation

The Lexus LS 500h is suffering steep depreciation in the US because it lacks attractive long-term structural and market trends. In any case, it is a product that combines a series of features that directly contribute to a poor value retention proposition. The full-size luxury sedan market has already suffered a dramatic decline as buyers in this market have quickly flocked to SUVs. The LX700h would be the SUV equivalent of this model, and it outperforms the LS by a notable margin. When there are fewer new buyers, this usually translates into lower demand for used cars. The high original retail price of the LS 500h also means that potential owners suffer large absolute value losses.

Lexus typically enjoys one of the best reputations for reliability across all segments, thanks to its ability to leverage Toyota’s long-standing powertrain technologies. For exactly the same reason, the LS does not have the same prestige as the top German flagships, such as the Mercedes-Benz S-Class and the BMW 7 Series, thus failing to maintain its high popularity on the secondary market. This is true even though there is no Toyota using its hybrid powertrain. Speaking of which, the hybrid powertrain and unique packaging raise concerns among buyers about future repair costs or parts availability, especially when looking at the battery pack. This reduces confidence in residual values, as most owners are unlikely to spend large amounts of money on a vehicle that depreciates in value so quickly.

Sources: fueleconomy.gov, iSeeCars, Edmunds, AutoEdgeAnd JD power.