Everything feels expensive right now, and affordability is pretty much front and center for most people. Even so, the appeal of driving something nicer hasn’t really gone away.
Luxury cars still do what they’ve always done well—quiet cabins, more comfort, and that feeling of stepping out of the everyday grind. It’s less about status and more about making the drive itself feel easier to live with.
What’s changed is the math. With new cars averaging around $47,000 in the US, some used luxury hybrids are now undercutting even a brand-new Toyota Corolla, which makes the usual “new vs nice” decision a lot less straightforward.
In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from Lexus and Toyota, as well as other authoritative sources, including J.D. Power, Kelley Blue Book, and TopSpeed.
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The 2026 Toyota Corolla starts just under $25,000
That still puts it among the most affordable new cars in America today
Even with everything getting more expensive, the Toyota Corolla still manages to feel like one of the “cheaper” new cars out there. Go back about 20 years, and you could grab a brand-new one for around $14,545, which shows just how much the market has shifted since then.
Adjusted for inflation, that old price lands somewhere in the mid-$20K range today, but it definitely didn’t feel that close at the time. Today’s Corolla starts at $24,320 for the LE with destination, while the Hybrid XLE tops out at $30,353.
It still makes sense in context, especially with all the added safety tech, hybrid options, and improved interiors baked in. Even so, it’s a reminder that “affordable” doesn’t stretch as far as it used to, especially when you compare it to what that kind of money can get elsewhere.
The 2026 Corolla’s specs and features
To be fair, the Corolla isn’t trying to be flashy or expensive, but it’s a lot more advanced than it used to be and pretty well-equipped for its segment.
You get a 2.0-liter four-cylinder or a hybrid option that can hit up to 50 mpg combined. It also comes with Toyota Safety Sense, including adaptive cruise control and lane keeping assist.
Inside, there’s a standard touchscreen with Apple CarPlay and Android Auto, plus a more modern cabin layout with a digital gauge cluster. Higher trims add things like wireless charging and a JBL sound system.
It uses a CVT, and the SE trim comes with LED headlights as standard. It’s also earned an IIHS Top Safety Pick rating, so even if you’re not chasing luxury, it still makes a solid case for itself.
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Entry luxury hybrid depreciation shift
Used models are dropping into mainstream price territory faster than expected
Entry-level luxury cars sit in a weird middle ground. They carry strong brand appeal, but don’t always hold their value that well over time.
That’s mostly because they start expensive and can cost more to maintain, which tends to push depreciation faster than with standard cars. At the same time, rising new car prices have nudged more buyers toward the used market, especially for these kinds of vehicles.
Early depreciation creates value opportunities
Buying a brand-new car can feel a bit painful these days, anyway. Between dealer add-ons you didn’t ask for and constant upsells, it rarely feels like a clean transaction.
The bigger hit, though, is depreciation. A new car typically loses around 20 percent of its value in the first year and roughly 30 percent by year two, with some luxury models dropping even faster depending on demand and running costs.
The upside is that this drop doesn’t keep falling at the same pace forever. After that initial hit, depreciation usually slows down, which is exactly where the used market starts to open up real value opportunities.
Sedans lose value faster than SUVs
It really comes down to simple supply and demand. Buyers today just aren’t as interested in sedans as they are in SUVs.
SUVs now make up the bulk of new car sales in the US, and that stronger demand helps them hold their value better over time. Sedans, including models like the Corolla and even luxury hybrid sedans, tend to take a bigger hit as a result.
On top of that, SUVs offer more space and practicality, which keeps pulling shoppers away from traditional sedan body styles.
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A 2019 Lexus ES 300h now costs Corolla money
Used luxury hybrid sedans are slipping into mainstream price territory thanks to depreciation
Yes, you read that correctly—a 2019 Lexus ES 300h can land in the same price bracket as a brand-new Toyota Corolla, depending on mileage, trim, and condition. It sounds almost unrealistic until you look at the used market.
And that’s where things get interesting. What used to be a firmly “luxury-only” hybrid sedan is now slipping into mainstream affordability, which completely changes how you think about value at this price point.
Before getting into why that gap exists, it’s worth breaking down what the ES 300h actually offers on paper.
- Base Trim Engine
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2.5L Inline-4 Hybrid
- Base Trim Transmission
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Continuously Variable Automatic (CVT)
- Base Trim Drivetrain
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Front-Wheel Drive
- Base Trim Horsepower
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215 hp
- Base Trim Torque
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163 lb-ft @ 3600 rpm
- Fuel Economy
-
43/45 MPG
- Make
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Lexus
- Model
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ES Hybrid
- Segment
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Midsize Luxury Sedan
Overlapping models
The Lexus ES originally launched alongside the Lexus LS, giving Lexus dealers a second option beyond the flagship limousine. The idea was simple: offer something a bit more accessible while still keeping that luxury feel intact.
Over time, the ES carved out its own space and now goes head-to-head with models like the Mercedes E-Class and BMW 5 Series. But interestingly, it wasn’t even Lexus’s first hybrid luxury sedan—that title actually belongs to the GS.
Lower ownership costs
A big reason people stick with the Corolla is simple: it’s known for being one of the most reliable cars you can buy. Lexus, meanwhile, has also built a strong reputation for reliability over the years, often ranking near the top of the luxury segment.
According to CarEdge, the estimated 10-year maintenance cost for a Lexus ES comes in at around $5,925. For a luxury sedan, that’s unusually low and puts it much closer to mainstream ownership costs than you’d expect.
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Still feels like a modern Lexus
Even with depreciation, the ES keeps its premium design, tech, and comfort intact
The ES still feels like a modern Lexus largely because this generation has been around since 2019. It’s had a couple of updates along the way to keep things fresh, but the core design hasn’t really aged out.
Inside, the layout, materials, and soft-touch finishes still hit the marks you’d expect from a luxury car, even today. It’s comfortable, clean, and built around the kind of refinement Lexus buyers usually want.
If you go for the F Sport, you also get adaptive dampers and a more aggressive interior setup. It leans a bit more sporty than traditional luxury, which gives it a slightly different personality without losing that premium feel.
2019 redesign still keeps styling relevant
The 2019 redesign was a big turning point for the ES. It shifted onto Lexus’s GA-K platform, which is still widely used today, including in newer models like the latest Highlander BEV.
That change brought a more modern setup overall, including a widescreen infotainment system, a digital gauge cluster, and noticeably improved driving dynamics. It’s the kind of refinement you simply don’t get in something like a Corolla.
Pricing remains well within many budgets
The 2019 ES 300h stands out on price no matter which trim or powertrain you look at. Even the base ES 350 comes in around a $24,400 KBB fair purchase price.
Step up to the top-spec ES 300h Ultra Luxury, and you’re still looking at roughly $26,500, which is about $4,000 less than a fully-loaded Corolla. For that money, you’re also getting features like heated and ventilated power seats, ambient lighting, and tri-zone climate control, along with a long list of other premium touches.
Stephan is the sports journalist for the Maple Grove Report.
