Used Lexus Models Shedding Value Faster than Most
Used Lexus models are shedding value faster than most other brands, according to a new report.
Falling Prices
Over the past several months, the used vehicle market has finally begun to cool off after years of record-setting performance fueled by a new vehicle shortage. With new vehicle inventory levels bouncing back in a big way, used vehicle prices have finally started declining for the most part, though some brands and models are experiencing larger drops than others. When it comes to Lexus, the luxury brand falls relatively close to the top of that pack, according to new data from iSeeCars.
Photos: Lexus
Falling Value
In its latest analysis of the used vehicle market, iSeeCars found that one- to five-year-old Lexus models are selling for $39,855 on average, which is 5.4 percent or $2,293 less than one year ago. That's good enough to rank Lexus 11th among 34 automotive brands, too.
Photos: Lexus
Top 10
Tesla led the way by losing 28.9 percent in value year-over-year thanks to some aggressive price cuts over the past year, and was followed by Alfa Romeo (13.3 percent), Maserati (9 percent), Lincoln (8.2 percent), Volvo (7.9 percent), Ram (7.6 percent), Kia (6.7 percent), Mini (6.3 percent), Volkswagen (6.1 percent), and Audi (5.9 percent) to round out the top 10.
Photos: Lexus
Beating the Market
As for the overall market, used vehicle pricing declined to $31,153, which presents a 3.6 percent or $1,161 drop compared to a year ago. This means that Lexus outpaced the mean by a rather notable 1.8 percent, though in all fairness, that isn't unusual for a very good reason.
Photos: Lexus
Historically Speaking
Historically speaking - before the pandemic, at least - luxury vehicles have long proven to depreciate faster than their mass-market counterparts. This is largely due to the fact that they tend to come equipped with more technology and pricey features that simply don't help most luxury vehicles retain their value as well when they become used models.
Photos: Lexus
Sizable Decline
Regardless, this sizable decline in pricing is obviously good news for shoppers and not terribly great news for sellers, even though used vehicle pricing overall remains high by historical standards.
Photos: Lexus
No Relief?
“Used car shoppers are seeing a bit of a break in vehicle costs, but we’re still well above the pre-pandemic average used car price point of roughly $20,000, with no indication we’re going back to those levels any time soon,” said Karl Brauer, iSeeCars Executive Analyst.
Photos: Lexus
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