Luxury cars have always come with a premium price tag, and for plenty of buyers, that’s simply part of the deal. The Mercedes-Benz E-Class has spent decades earning its reputation as one of the benchmark luxury sedans, blending comfort, prestige, and refinement better than most.

The catch is that owning one can be just as expensive as buying one. Between depreciation, maintenance, and running costs, the E-Class can end up costing far more than many buyers expect.

If you’re after the same sense of luxury without the long-term financial sting, there’s a compelling alternative. The Lexus ES quietly delivers a premium experience while keeping ownership costs far easier to live with.

Built for the long haul

Luxury that keeps ownership costs in check

For nearly two decades, the Lexus ES has quietly built a reputation as one of the smartest buys in the luxury sedan market. It may not grab headlines like its German rivals, but it consistently delivers where owners care most.

Comfort, refinement, strong resale value, and low ownership costs have long been the ES’s calling cards. It’s the kind of luxury sedan that tends to get better with age rather than more expensive to live with.

For 2026, the ES is offered with either a hybrid or fully electric powertrain, while sticking to the comfort, refinement, and quality the nameplate has become known for. If you’re shopping the hybrid lineup, you can choose from the ES 350h Premium, Premium AWD, Premium+, and Premium+ AWD trims.

Base Trim Engine

2.5-liter inline-4 hybrid

Base Trim Transmission

e-CVT

Base Trim Drivetrain

Front-Wheel Drive

Base Trim Horsepower

244 HP

Base Trim Torque

175 lb.-ft. @ 5000 RPM

Make

Lexus

Model

ES

Segment

Midsize Luxury Sedan

If you’d rather go fully electric, the lineup consists of the ES 350e Premium and ES 350e Luxury. Here’s what each one costs.

It holds its value better than most

Credit: Lexus

One of the biggest reasons people keep coming back to Lexus is how well these cars hold their value. According to CarEdge, Lexus vehicles retain an average of 38 percent of their original value after five years, making the brand the strongest performer in the luxury segment.

The ES follows that same formula. iSeeCars estimates it loses just 16 percent of its value after three years and 35.8 percent after five, which is impressive for any luxury sedan. For context, even the Toyota Camry Hybrid is expected to lose 34.4 percent over the same five-year period, putting the ES remarkably close to one of the market’s resale benchmarks.

Reliability is where Lexus really shines

Credit: Lexus

Lexus has spent decades building one of the strongest reliability reputations in the business, and the ES is a big reason why. Like its Toyota counterparts, it’s known for spending more time on the road than in the repair shop when properly maintained.

That reputation is backed up by the numbers. In the 2026 U.S. Vehicle Dependability Survey, Lexus recorded just 151 problems per 100 vehicles, comfortably beating the industry average of 204 and finishing at the top of the rankings.

The ES performs just as well on an individual level. RepairPal gives it a 4-out-of-5 reliability score, ranking it as the fourth most reliable luxury sedan it tracks, while Lexus itself also earns a 4-out-of-5 brand rating. When it comes to long-term peace of mind, few luxury badges inspire as much confidence.

More than just the sensible choice

Luxury without the ownership headaches

Credit: Lexus

Reliability alone isn’t enough to make a great luxury sedan. You still expect comfort, premium tech, elegant styling, and a cabin that feels special, and the ES delivers on all of those fronts.

Despite its relatively modest ownership costs, the ES doesn’t feel like a compromise. It comes well-equipped across the lineup and offers the kind of refinement buyers expect from a luxury sedan.

Premium where it counts

Credit: Lexus

One thing Lexus has always done well is make its cars feel more expensive than they actually are, and the ES continues that tradition. While many German rivals lock their best features behind pricier trims, the ES delivers a genuinely upscale cabin from the outset.

Even the Premium trim comes generously equipped with heated and ventilated power-adjustable front seats, a heated steering wheel, wireless phone charging, ambient lighting, and Tahara synthetic leather upholstery. A 12.3-inch digital instrument cluster and a 14-inch Lexus Connect touchscreen come standard, while soft-touch materials across the dashboard, doors, and center console give the cabin a polished, premium feel.

Step up to the Premium+ trim and the experience becomes even more luxurious. You get a 17-speaker Mark Levinson sound system, a head-up display, a digital rearview mirror, dual wireless phone chargers, and a panoramic view monitor on top of the already generous standard equipment.

Credit: Lexus

At the top of the range sits the ES 350e Luxury, which leans fully into comfort and craftsmanship. Semi-aniline leather replaces the standard upholstery, while genuine bamboo trim and illuminated Bamboo Layering door panels give the cabin the kind of rich, high-end feel you’d normally expect from a much pricier flagship sedan.

The sense of refinement doesn’t stop there. Extensive sound insulation keeps the cabin whisper quiet, while rear passengers in the top trim get power-reclining seats complete with an ottoman for an almost limousine-like experience.

The ES isn’t the flashiest luxury sedan you can buy, but it’s exceptionally good at the things you’ll appreciate every time you get behind the wheel.

Efficiency that saves you money

Credit: Lexus

The 2026 ES lineup is available with two powertrains: a hybrid four-cylinder or a single-motor all-electric setup. Whichever you choose, the focus is the same—smooth, efficient performance that doesn’t feel underpowered in everyday driving.

The hybrid delivers the fuel savings Lexus is known for, while the EV offers brisk acceleration and a respectable driving range. Neither is designed to be a sports sedan, but both strike a smart balance between performance and efficiency.

2026 Lexus ES 350 powertrain specs

Performance isn’t the ES’s headline act, but it’s far from sluggish. Lexus says the front-wheel-drive ES 350h reaches 60 mph in 7.3 seconds, while the AWD version trims that to around 7.1 seconds. The front-wheel-drive ES 350e is close behind at 7.4 seconds, with all-wheel drive reserved for the more powerful ES 500e.

If outright speed is your priority, there are quicker luxury sedans out there. But if you’d rather spend less time at the gas station—or charging station without giving up everyday usability—the ES strikes an excellent balance.

Official EPA figures haven’t been published yet, but Lexus estimates the front-wheel-drive ES 350h will return up to 46 mpg combined, while the all-wheel-drive version is rated at 44 mpg combined. Those are excellent numbers for a midsize luxury sedan.

If you opt for the all-electric ES 350e instead, Lexus estimates a driving range of up to 307 miles on a full charge. That’s enough to comfortably handle daily commuting and longer highway trips with fewer charging stops.

The smarter luxury buy

Mercedes impresses, Lexus makes more sense

Credit: Mercedes-Benz

For years, the Mercedes-Benz E-Class has been the benchmark for midsize luxury sedan cruising, and that hasn’t changed for 2026. It still delivers the plush comfort, prestige, and smooth road manners buyers expect from the badge.

The lineup starts with the E 350 and E 350 4MATIC, moves up to the E 450 4MATIC, and also includes the EQE 320+ and EQE 320 4MATIC models. Here’s how pricing breaks down across the range.

Buyers also get a choice between two combustion engines and a fully electric option. Rear-wheel drive comes standard on the E 350 and EQE 320+, while 4MATIC all-wheel drive is reserved for the AWD variants.

Here’s how the 2026 E-Class powertrains stack up on paper.

Mercedes says the E 350 models can reach 60 mph in 6.1 seconds, whether you choose rear- or all-wheel drive. Step up to the E 450 4MATIC and that drops to a much quicker 4.4 seconds.

The EQE models sit in the middle, sprinting to 60 mph in around 5.5 to 5.8 seconds. On paper, there’s no contest here—the E-Class lineup is clearly quicker and more powerful than the ES 350 across the board.

The ES wins where it counts most

Credit: Lexus

In a time when running costs matter just as much as the purchase price, it makes sense to want a luxury car that doesn’t punish you financially. That’s where the ES 350 quietly stands out.

Depreciation is where the E-Class starts to lose ground. According to iSeeCars, it sheds about 29.1 percent of its value after three years, 52.5 percent after five, 63.1 percent after seven, and a steep 76.4 percent after ten. Even newer EQE models are already showing up on the used market at around $38,300–$42,000, a sharp drop from their original sticker prices.

On the flip side, 2024 ES models are still holding strong, with used examples selling anywhere between $34,500 and $44,000, even though they started at a lower price point. Broadly speaking, CarEdge estimates Mercedes models lose around 46 percent of their value over five years on average.

Then there’s the total cost of ownership. CarEdge pegs the five-year ownership cost of the ES 350 at about $42,140, compared to a much steeper $68,259 for the E 350. Across the board, everything from depreciation to running costs tends to run higher with the Mercedes.

The smartest luxury sedan choice

It just makes more sense

Credit: Lexus

When you look past the badge, the ES 350’s appeal is pretty straightforward. It feels like a proper luxury sedan in real-world use, not just on a spec sheet, and it doesn’t waste time chasing headline-grabbing numbers.

The 2026 ES 350h and ES 350e both lean into the same idea—quiet, low-stress luxury delivered in two different ways. The hybrid sticks with proven, refined tech, while the EV keeps things simple and easy to live with. Neither feels experimental, and that’s a big part of the appeal.

Step back and factor in depreciation, servicing, and long-term running costs, and the ES starts to make even more sense. It’s not the quickest or most exciting luxury sedan out there, but it nails comfort, usability, refinement, and ownership confidence—and those are the things that tend to matter most over time.