Resale value · Los Angeles & the South Bay

Why Lexus Retains More Value Than Competitors in LA

What you pay for a luxury car is only part of what it costs you. The rest is what it's worth when you sell or trade it. Below: the resale data, the reasons behind it, and how to get the most for your Lexus at trade-in time in the South Bay.

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By the South Bay Lexus Product TeamUpdated September 29, 2026Data: Kelley Blue Book, iSeeCars, J.D. Power ALG
Short answer

Which luxury car brand holds its value best in Los Angeles? We haven't found a public study that measures luxury resale only in Los Angeles, so this answer uses national data. On that data, Lexus leads. Kelley Blue Book named Lexus the Best Luxury Brand for resale value in 2026, for the fifth year in a row. In iSeeCars' March 2026 study, the Lexus RX 350 lost 32.8% of its value over five years. The average vehicle lost 41.8%, and the BMW X5 hybrid lost 57.1%.

The data

Lexus Resale Value: What Three Independent Sources Show

Kelley Blue Book and J.D. Power ALG project future resale values. iSeeCars measures what actually happened to five-year-old vehicles that were sold. Lexus ranks at or near the top in all three.

5thConsecutive year Lexus has won Kelley Blue Book's Best Luxury Brand for resale value. It has won the award seven times in total.KBB 2026 Best Resale Value Awards
3Lexus segment winners in KBB's 2026 awards: the UX (luxury subcompact SUV), NX (luxury compact SUV) and RX (luxury midsize SUV).KBB, March 19, 2026
3Lexus segment winners in J.D. Power's 2026 ALG Residual Value Awards: the NX, RX and LX.J.D. Power ALG, Jan. 20, 2026
32.8%Five-year depreciation for the Lexus RX 350, compared with an average of 41.8% across all vehicles.iSeeCars, March 2026

Five-year depreciation: Lexus vs. German luxury

Share of value lost after five years. Lower is better. Actual transaction data, iSeeCars March 2026 study.

Lexus RX 35032.8%
Lexus ES 300h39.9%
All vehicles41.8%
Mercedes GLC51.4%
BMW X5 Hybrid57.1%
Audi Q5 Hybrid58.2%
BMW 5 Series Hybrid59.5%
iSeeCars analyzed about 950,000 sales of five-year-old vehicles from March 2025 through February 2026. The BMW X5 hybrid, Audi Q5 hybrid and BMW 5 Series hybrid appeared on its list of vehicles that lose the most value.2

For balance: Mercedes-Benz won two of KBB's 2026 resale segments, the E-Class (luxury midsize car) and the G-Class (luxury full-size SUV). In J.D. Power's 2026 ALG awards, Tesla was the top luxury brand in the U.S. Lexus leads across the most sources, but it doesn't win every category.13

Luxury car depreciation in dollars

What a 24-Point Depreciation Gap Is Worth

Percentages are easy to skim past. Here is the RX 350's five-year depreciation rate next to the BMW X5 hybrid's, applied to the same purchase price.

Illustration only. It uses a round $60,000 price so the math is easy to follow. It is not a quote or an appraisal.

$19,680Value lost over five years at the RX 350's 32.8% rate
$34,260Value lost over five years at the BMW X5 hybrid's 57.1% rate
$14,580Difference in what you'd have left after five years
$2,916That difference spread over each year of ownership
The reasons

Why Does Lexus Hold Its Value Better?

Resale value comes down to what the next buyer expects the car to cost them. On that question, Lexus has an advantage from several independent sources at once.

Used buyers expect fewer problems

J.D. Power's 2026 Vehicle Dependability Study measured three-year-old vehicles, the age most used luxury buyers shop. Lexus ranked #1 with 151 problems per 100 vehicles. BMW scored 198 and Mercedes-Benz 235.4

Used buyers expect lower running costs

CarEdge estimates 10-year maintenance and repair at $7,110 for Lexus, $12,942 for Mercedes-Benz and $16,021 for BMW. Used buyers take on those later-year costs, and the price they'll pay reflects them. See the full cost matrix.

A strong certified program adds demand

L/Certified gives pre-owned Lexus buyers 2 years of unlimited-mile coverage after the new-vehicle warranty ends, a 161-point inspection and four included services. U.S. News & World Report named it the Best CPO Program of 2026, the ninth year in a row.5 A strong certified program gives used buyers more confidence, and that keeps demand for late-model Lexus vehicles steady.

Longer powertrain and hybrid coverage

The Lexus powertrain warranty runs 6 years or 70,000 miles. Hybrid batteries on 2020 and newer models are covered for 10 years or 150,000 miles. A buyer looking at a four- or five-year-old Lexus hybrid can still have factory coverage on its most expensive components.

Local context

What Changes for Lexus Resale Value in Los Angeles

The national data sets the baseline. How you drive in the South Bay decides where your car lands compared with it.

Mileage builds quickly here

Depreciation studies assume average use. Daily trips between Torrance, El Segundo, Long Beach and downtown add miles faster than that. Mileage is one of the biggest factors in any appraisal, so a well-maintained car with higher miles still needs a strong service record behind it.

Fuel economy counts for more

California gas prices are consistently among the highest in the country, so buyers here pay close attention to fuel economy. The RX 350h is EPA-rated at 36 mpg combined and the NX 350h at 39 mpg combined (AWD). Both give used buyers a reason to pay more.

Sun and parking take a toll

Southern California sun is hard on paint, headlight lenses and dashboards. Tight parking is hard on wheels and bumpers. Covered parking, regular washing and fixing curb rash before an appraisal all protect what your car is worth.

Want a local number, not a national average? Our trade-in tool uses Kelley Blue Book's Instant Cash Offer to value your car's specific year, mileage and condition. It takes a few minutes.

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Checklist

How to Protect Your Lexus Resale Value

Most of these cost little or nothing. They also make an appraiser's job easier, and that usually means a stronger offer.

  1. Follow the factory schedule

    Keep every service record, especially dealer-stamped ones. A complete history is the strongest evidence of condition you can bring.

  2. Keep it stock

    Aftermarket wheels, tint and tunes usually narrow the pool of buyers. Keep the original parts if you've changed anything.

  3. Bring both keys and the manuals

    A missing key fob is a common, avoidable deduction.

  4. Time the trade

    Lexus vehicles up to six years old with under 80,000 miles can qualify for L/Certified. Trading before your car ages out keeps that option open for the next buyer.5

Thinking about your next Lexus? Browse L/Certified inventory with the certified coverage already in place.

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FAQ

Lexus Resale Value Questions

Does Lexus hold its value better than BMW?

Yes, on current data. Kelley Blue Book named Lexus the Best Luxury Brand for resale value in 2026. In iSeeCars' March 2026 study, the Lexus RX 350 lost 32.8% over five years, compared with 57.1% for the BMW X5 hybrid and 59.5% for the BMW 5 Series hybrid.

Which Lexus holds its value best?

In iSeeCars' March 2026 study, the Lexus RC lost 26.6% over five years, and it was the only Lexus on the list of 25 vehicles that held their value best. The RX 350 lost 32.8%. The UX, NX and RX all won their segments in KBB's 2026 Best Resale Value Awards.

How much does a luxury car depreciate in five years?

It varies widely by model. iSeeCars puts the average five-year loss for all vehicles at 41.8%. Several German luxury hybrids in its study lost more than 55%, while the Lexus RX 350 lost 32.8%.

Is there resale data just for Los Angeles?

We haven't found a reliable public study of luxury resale limited to Los Angeles. The best local answer is an appraisal of your specific vehicle. Our trade-in tool gives you a Kelley Blue Book Instant Cash Offer.

South Bay Lexus · 24777 Crenshaw Blvd, Torrance

Find Out What Your Car Is Worth

Get a Kelley Blue Book Instant Cash Offer online, then bring your car in to confirm it. Trading toward a new or L/Certified Lexus is optional.

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Sources & Methodology

KBB and ALG figures are projections of future value. iSeeCars figures come from completed used-vehicle sales. We don't combine figures from different studies into a single claim. The $60,000 example applies published depreciation rates to a round number for illustration only.

  1. Kelley Blue Book, "2026 Best Resale Value Award Winners," March 19, 2026, via PR Newswire. prnewswire.com
  2. iSeeCars, "Cars That Hold Their Value" five-year depreciation study, March 2026. iseecars.com
  3. J.D. Power, "2026 ALG Residual Value Awards," January 20, 2026. jdpower.com
  4. J.D. Power, "2026 U.S. Vehicle Dependability Study," February 12, 2026. jdpower.com
  5. South Bay Lexus L/Certified page, citing U.S. News & World Report. L/Certified eligibility per Kelley Blue Book's program summary.
  6. CarEdge luxury maintenance rankings, accessed September 2026. caredge.com
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