Lexus Leads Luxury Brands in Retained Value, Outpacing BMW and Audi

When it comes to buying a luxury vehicle, most people aren't thinking about it as a smart investment. But according to data from CarEdge, a car-buying resource, Lexus stands out as the brand that loses the least value over time. After five years, Lexus models are expected to depreciate by about 38%, while BMW vehicles lose around 50% and Audi around 48%.

That means a Lexus keeps more than 60% of its original value, a figure that leaves its German rivals behind.

The difference is even clearer when you look at specific models. The Lexus RX 350 and GX 550 are projected to lose just 33% of their value after five years, while the NX 350 and TX 350 are expected to drop by 41%. In comparison, the Audi Q5 is projected to depreciate by 46%, and the BMW X5 by 59%.

For sedans, the Lexus IS 350 and the discontinued IS 500 are expected to lose 41% and 29% respectively, while the BMW 3 Series is projected to drop by 53%.

These numbers matter if you plan to trade in your car after a few years. Higher retained value means more equity and a better trade-in offer. For example, a 2026 Lexus RX 350 priced at $57,909 is estimated to be worth $38,654 after five years. A 2026 BMW X5 at $81,383 would drop to around $32,985 in the same period.

Lexus keeps its value for a few reasons. The brand is known for reliability, and it also keeps options simple. Unlike many competitors, Lexus offers few add-ons, with most paints being no-cost and the most expensive options around $600. This keeps initial costs lower and helps maintain value, since expensive extras rarely return their cost when you sell.

As a result, Lexus offers a rare combination of long-term durability and strong resale value, making it a sensible choice for those who like to upgrade every few years.