I recently bought a 2010 E550 coupe with under 20K miles on it (one of the last Mercedes coupes with an NA V8), so it'll be a while before I'm able to buy an LC. Nonetheless, in 5 or so years, I plan on buying a Corvette or LC (leaning toward LC). But I can't help but notice that used LC's seem to be retaining their value exceedingly well. Even 2018 models! Any unique insight as to why this may be? Yeah, it's a Lexus, it's among the last of a dying breed (NA V8 GT car), and it's somewhat rare, but still. There are so many vehicle choices out there that it seems like this car would have depreciated much more than it has.

In early 2010, I bought an almost fully-loaded 2004 Corvette with 17K miles for $21K (around $56K new). A few months later, I also bought a 2005 SC430 with under 30K miles on it for about $25K (around $64K new). Sadly (for used car buyers like me!), those types of depreciation scenarios appear to be long gone.

 

Good question - the ubiquitous answer would be “supply and demand”. But the factors that play into the “demand” and “supply” elements can vary wildly from vehicle to vehicle. For example, I happen to also own a Jeep Wrangler which is always near the top of any “least depreciating” list for reasons I don’t fully understand.

With the LC500, you have a combination of Lexus’ ultra-high reliability and quality coupled with what most automotive journalists have described as a beautiful design for the ages - thus the demand should be elevated. When you factor in that Lexus has only sold roughly 1,500 on average per year in the U.S. since the 2018 model year that works out to only roughly 9,000 cars total for model years 2018-2023 and when you add in the few hundred already sold for 2024 model year it’s still less than 10,000 total so the supply is rather low. Accordingly - the LC would presumably have less than average levels of depreciation. Good luck on your quest for an LC - it’s probably my favorite and overall best car I’ve ever owned.

Here’s some articles on the subject:

New Cars That Depreciate Least

Too 10 Cars With The Slowest Depreciation

 

I'd also say that it's because people don't put a lot of miles on their LCs.

 

I agree with other member’s points including limited availability, NA V8, attractive looks, reliability, etc.

Looking back over the last decade and a half, I noted that used vehicle prices prior to and up to 2018/2019 were typical of the trends for the traditional auto depreciation market - with the exception of very exclusive vehicles, say Ferrari, Porsche GT cars, and other limited production exclusive and exotic cars - and I understood that any new car purchase was “a depreciating asset”.

Then the global pandemic hit bringing all the auto market disruptions and the very limited new car supply.
With such limited new car availability, the used market flourished. And used car prices rose, particularly for more specialty type vehicles.

We know the last year has seen a huge interest rate escalation - since rates had been consistently dropping since the GFC of 2007/2008 helping to increase consumer spending - bringing down discretionary consumer spending. And I’ve seen used car prices soften and market demand drop.

I speculate that used car prices will continue to soften as auto market disruptions subside and interest rates stabilize. Over the next 1-2 years, I see us returning to the typical/historical depreciation trends.

The variable that could have a significant impact on vehicle resale values over the next 5-10 years is the government policies that will continue to reduce new ICE vehicle production.
Our smaller market special ICE vehicles might have less depreciation due to buyers who continue to find the special ICE vehicle experience very appealing.
Or the government policies reducing ICE production could mean our special ICE vehicles resume depreciating like all others - except the exclusive exotic ICE vehicles that will be like collectable “art pieces” for those persons who have the means - because auto manufacturers are producing significantly better performing EV/alternative fuel specialty vehicles that have the looks, performance, and technology sold at a price (price points will be critical) that make the buyer say, “Yes, I’ll take this new one.”

It’ll be interesting to see how this next decade unfolds.

 

I believe the biggest factor in lack of depreciation is that the ‘18 LC is basically the exact same car as the 24. Lexus claims yearly changes in trans shift points, engine mounts, etc. Largely marketing claims to differentiate years.

You could put a clean ‘18 next to a ‘24 and there would be no way to tell the difference in model year except for the recent interior change in the touch screen and track pad that just occurred in the ‘24.

Because Lexus keeps life cycle changes to a minimum, they keep the depreciation down.

BMWs on the other hand…. These cars although are very well styled get old fast because every 3 years they change styling with life cycle changes even if the model is the same. This process dates the older models faster.

 

Reliability.

You can afford to own a 5-10 year old Lexus.

BMW and Mercedes can cost more per year to keep on the road than their value after 10 years. I had a MB AMG and was told after about 7 years be ready to spend at least 5000-7000 per year to keep it going. I have been told BWM is worse.

My first real car when I was 19 was a Toyota Supra - drove it from 150,000 miles until 250,000. I spent about 1600 keeping it on the road all those years.

Again, Reliability!