Easterns Blog

Owning a luxury vehicle like the Lexus LS 500 is a dream for many, but understanding the total cost of ownership is crucial for making an informed decision. The LS 500 is renowned for its blend of performance, comfort and advanced technology.

Purchase Price and Depreciation

The initial purchase price of a new Lexus LS 500 is a significant investment, reflecting its high-end features, advanced technology and superior craftsmanship. However, like all vehicles, the LS 500 depreciates over time.

• Initial Purchase Price: A new Lexus LS 500 comes with a premium price tag, reflecting its luxury status and cutting-edge features. This initial cost can be a big part of the total ownership cost.
• Depreciation: Luxury vehicles tend to depreciate faster than non-luxury cars, especially in the first few years. Purchasing a pre-owned LS 500 or another used Lexus model can help you avoid this and save overall.
  
  

Fuel Expenses

The Lexus LS 500 offers impressive performance with its powerful engine, but this comes at a cost in terms of fuel consumption.

• Fuel Efficiency: The LS 500 provides respectable fuel efficiency for a vehicle of its class, but it’s essential to factor in higher fuel costs compared to smaller, more economical vehicles.
• Estimated Annual Fuel Cost: With an average fuel efficiency of around 21 MPG combined and current average gas prices at $3.50 per gallon, a Lexus LS 500 buyer who drives 12,000 miles per year should expect to spend approximately $2,000 annually on fuel.
  
  

Maintenance and Repair Costs of the Lexus LS 500

Maintaining a luxury vehicle like the Lexus LS 500 involves more than just routine oil changes. As the vehicle ages, repair costs can increase. The estimated annual maintenance and repair costs for a Lexus LS 500 are around $1,000 to $1,500, including routine services and minor repairs. Major repairs or unexpected issues can add to these costs, so it’s wise to budget for potential surprises.

Opting for a certified pre-owned (CPO) Lexus LS 500 can provide peace of mind, as CPO vehicles often come with extended warranties and thorough inspections.

Insurance Costs

Insurance is an important part of owning a luxury vehicle, and premiums for the Lexus LS 500 can vary based on several factors such as the driver profile, features of the vehicle and the condition of the vehicle as a whole. A pre-owned Lexus LS 500 generally comes with lower insurance premiums compared to buying a new vehicle for several reasons.

Firstly, a pre-owned vehicle has a lower market value than a new one, leading to lower replacement costs in the event of a total loss. Additionally, since new cars experience the highest depreciation within the first few years, insuring a new car is costlier due to the higher payout required for replacement.

In contrast, a pre-owned vehicle has already undergone significant depreciation, reducing the insurer’s potential payout. Older vehicles may also have more readily available and less expensive parts, leading to lower repair costs, which insurers consider when determining premiums.

Financing Costs of the Lexus LS 500

Financing your Lexus LS 500 is another important aspect of the total ownership cost. Interest rates on auto loans can vary based on your credit score and other financial factors.

At Easterns Automotive, we believe in offering flexible financing solutions when purchasing your vehicle, to avoid stress and hassle. No matter what your credit score is, you will have the opportunity to purchase the vehicle you desire.

Ready to Drive a Pre-Owned Lexus LS 500? Visit Our Online Inventory at Easterns Automotive!

If you’re in the market for a pre-owned Lexus, Easterns Automotive is your go-to destination in Virginia, Maryland and Washington D.C.

We offer a wide selection of high-quality pre-owned vehicles, and with our motto “Where Your Job Is Your Credit”, we make it easy for you to finance your dream car. Visit our online inventory or give us a call at (240) 200-5256 for more information.