When Toyota launched its Lexus luxury brand in 1989, it seemed like a pretty good play: Lexus would offer all the high-end cues drivers wanted, but with the Toyota-like levels of reliability that the usual suspects — imported or domestic — couldn’t match.
Flash forward a few decades, and Lexus has indeed become a leader in the luxury space, but that includes being a leader for losing value — in this case “led” by the Lexus RZ. The RZ EV SUV is by far the Lexus with the worst depreciation rates. The folks at CarEdge, for example, reported that a typical 2025 RZ is expected to shed nearly 55% of its value over the first five years on the road. Chalk that up to the RZ facing the double whammy of depreciation, being not only a luxurious SUV but standing out for its all-electric powertrain.
Just take a look at our recent list of vehicles with the worst depreciation: Nine of the 10 rides on the list are luxury cars, and the only one that’s from a mainstream brand is an EV. And zeroing in on EVs, some electric vehicles have been caught losing value at a wallet-draining rate of more than $600 per day.
A Lexus losing value is a win for shoppers
That said, depreciation is a two-edged sword. Cutting down a car’s resale value is bad news for the current owner, but it’s a major benefit if you’re looking to buy one of Lexus’ first-ever EVs on the used-car market. Sure, critics had some issues with the RZ when it first went on sale, especially in terms of range. But a 2023 Lexus RZ 450e Luxury model that was some $65K when new can now be had for roughly $30,000 off as a used SUV, according to Edmunds.
For that money, you get a buttoned-down Lexus interior with impressive attention to detail, amazingly comfortable climate-controlled seats, radiant heating, 13-speaker Mark Levinson audio, a glass roof, wireless Apple CarPlay/Android Auto, a 14-inch touchscreen, a premium suspension, 308 horsepower, and plenty of high-tech safety systems. It’s all wrapped in an eye-catching exterior design that — say what you will about it — certainly isn’t dull. Even with a sub-200-mile range with its 20-inch wheels, this is a stylish and refined machine that feels like a true Lexus.
Lexus’ most valuable player helps put the brakes on depreciation
Yes, the Lexus RZ is No. 179 on the CarEdge list of luxury vehicles that lose the most value. But really, that’s not as bad as you may think. There are 38 vehicles that have worse depreciation rates on the list, and Land Rover’s Range Rover brings up the rear by retaining only 24.4% of its value.
The real bottom line is that — again per CarEdge — Lexus has the second-highest retained value rating among all luxury brands, with the Lexus RX SUV ranking as No. 1 overall on the premium side of the ledger. The RX holds onto roughly 70% of its original value after five years in service and remains one of the most popular luxury vehicles of any kind in the U.S. today. It goes to show just how much vehicle appreciation can help slow down vehicle depreciation.
