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Lexus Vehicles Retain Value



As we often like to point out on this site, a Lexus says much about its driver. Success. Leadership. An appreciation of quality. An eye for aesthetic details.

It also says you make intelligent financial decisions.

We mention this last trait because Kelley Blue Book’s KBB.com[1], one of the best known and most trusted resources for vehicle pricing and car-buying research, recently awarded Lexus its 2019 5-Year Cost to Own Award for Best Luxury Brand[2]. This accolade measures and rewards cost efficiencies after a vehicle is purchased, such as insurance, fuel, and expected maintenance costs, and the retention of resale value over time.

And just to be clear, Lexus didn’t just earn this recognition for one model—it earned the award as an entire brand, meaning Lexus owners, no matter which models they drive, should consider themselves astute fiscal decision makers who know how to think long-term.

But like all Lexus vehicle awards, this accolade is simply the result of underlying practices embedded in the Lexus ethos. In other words, Lexus models are a smart choice from a cost-to-own perspective because Lexus, since its first vehicle launched three decades ago, goes to extremes to deliver an unparalleled ownership experience.

1. For starters, there’s Lexus’ “sterling reputation” for quality, says KBB.com. Lexus’ focus on extreme quality—both in materials and production techniques—is a key factor in the vehicles’ reputation for dependability and durability, as evidenced by many early Lexus models still traveling the world’s roads. This workmanship is guided by the Lexus Takumi culture of hands-on master craftsmanship, which is meticulously infused into modern assembly and inspection practices. (Just one example: every Lexus LS engine is fired up on a test bench by a technician, whose inspections include listening to componentry with a stethoscope.)

2. This focus on quality extends to Lexus dealership service. No matter how high their quality, some factory automotive parts must be replaced occasionally after the model reaches your driveway, such as fluids, filters, tires, brake pads, and other components. This is why Lexus goes to fastidious lengths to uphold factory quality during the ownership phase. For starters, dealerships use only Lexus Genuine parts, a designation bestowed on replacement components only after careful engineering, testing, and technical approval by Lexus-certified engineers.

3. There’s also the fuel economy factor. When assessing efficient cost of ownership, KBB.com notes the importance of fuel consumption, pointing out that “few makers can boast as wide a range of hybrid versions of their standard production models as Lexus.” One of the newest hybrids, by the way, the 2019 Lexus UX 250h, has an EPA-estimated 42 combined mpg (43/city and 41/highway)[3]

4. People want your car. KBB.com also considers resale value when it evaluates cost of ownership. In conferring its 2019 5-Year Cost to Own Award on the entire Lexus brand, the organization points out that Lexus has a “strong reputation for value based on the high resale value of its vehicles across the lineup.” Put differently, when it comes time to acquire your next Lexus, your current model will potentially have held its value well.


By Brian Gill


[Legal disclaimers]

[1] Kelley Blue Book is a registered trademark of Kelley Blue Book Co., Inc.

[2] 2019 model-year vehicle’s projected cost to own for the initial five-year ownership period is based on the average Kelley Blue Book 5-Year Cost to Own data which considers depreciation and costs such as fuel and insurance. For more information, visit www.kbb.com.

[3] 2019 Lexus UX 250h EPA 43/city, 41/hwy, 42/comb MPG estimates. Actual mileage will vary.

 
- + Disclaimers