Lexus LS460 Is a Used Car Bargain, Relatively Speaking
Buying a used Lexus LS460 or Toyota 4Runner of the same model year will both cost you $35k. So which one would you choose?
The used car market and corresponding values are a complex, ever-changing, living organism. We often find ourselves shocked by how some makes and models hold their value compared to other, equally good (or even better) ones. As a general rule, Lexus vehicles have excellent resale values thanks to their legendary reliability and quality. But as Club Lexus member jrmckinley pointed out in a recent post, the Lexus LS460 might just represent a used car bargain. At least when compared to another Toyota product.
“I’ve owned 3 iterations of the LS for the last 10 years of my life. I’m currently loving my 460, but one vehicle I’ve always loved is the 4Runner (having owned two of them in the past). So I’ve been just looking online at 2014 4Runners and stumbled on an interesting question. Why does a Lexus LS460 depreciate at a significantly more rapid pace than a 4Runner? Because anyone with a $35k budget can buy either car, with the same mileage, in the most-recent facelift of each model.”
No doubt, the 4Runner is an incredibly popular vehicle. It’s also much ballyhooed for its off-road ability, which makes used ones particular desirable. But as the OP notes, there’s quite a difference here when you consider the Lexus LS460 originally sold for $30k more than the 4Runner.
“The Lexus LS460 has depreciated just under 50% from supposed sticker while the 4Runner has depreciated just under 20%. Granted, the 4Runner is one year newer, but you get the point. And for someone with a $35k budget, they could get one of the more refined luxury sedans or a dime-a-dozen, wildly reliable, but otherwise very standard SUV. Tough choice.”
For mmarshall, the answer to this perplexing question is rather simple.
“A simple, one-word answer….demand. SUVs are selling today…..sedans aren’t.”
But as LexsCTJill notes, luxury cars like the Lexus LS460 have always depreciated faster than pretty much anything else.
“Any high-priced luxury car will depreciate faster than a lower priced car. 25% off the first year of a 100K car is more than 25% off the first year of a 30K car. Eventually, both the 100K car and 30K car will be the same value, it’s just a matter of time. Buying a high-priced car is one of the fastest ways to spend your money because they depreciate so fast.”
It also doesn’t hurt that the 4Runner holds its value better than almost everything else on the road, according to DaveGS4.
“You picked one of the consistently ’10 best’ least depreciating vehicles to compare to.”
All of which makes perfect sense. But this hot topic is just getting started, and we want to know what you think. So head over here and tell us why you think the Lexus LS460 depreciates so much faster than the 4Runner. And be sure and tell us which one you’d spend your hard-earned money on!
