Luxury cars are typically niche and low-volume sellers, with margins decreasing with each year that passes. Cars that operate in this segment always make for poor investments, with depreciation rates being one of the worst across the entire car market. A big reason for these models suffering from such poor depreciation rates is attributed to their long-term reliability, which often requires large sums of investment to keep them on the road after the warranty has expired, ultimately making them undesirable products.
- Base Trim Engine
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3.5-liter V6
- Base Trim Transmission
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8-Speed Automatic
- Base Trim Drivetrain
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Rear-Wheel Drive
- Base Trim Horsepower
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311 HP @6600 RPM
- Base Trim Torque
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280 lb.-ft. @ 4800 RPM
- Make
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Lexus
- Model
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IS
- Segment
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Compact Luxury Sedan
A lack of appeal in the used market also affects resale, as most people don’t have the need for such luxurious cars as a daily driver. The freshly updated 2026 Lexus IS 350 is one example of a compact luxury sedan that holds its value fairly well. While not as technically impressive as other products from the brand, the IS often stands out as a better long-term investment.
The Lexus IS 350 Goes Back To Basics
In the 2026 Lexus catalog, the IS 350 serves as the brand’s entry-level sedan and the primary choice for driving enthusiasts. Following the discontinuation of the four-cylinder IS 300 and the V-8-powered IS 500, the V-6-only IS 350 now anchors the sedan lineup. It sits below the larger, comfort-oriented ES and the flagship LS 500. While the ES and LS emphasize serene luxury and executive cabin space, the refreshed 2026 IS focuses on a compact, rear-wheel-drive-based architecture, positioning it as the sport-focused alternative within the Lexus four-door family.
The 2026 Lexus IS 350 features a very familiar naturally aspirated 3.5-liter V-6, producing 311 horsepower and 280 pound-feet of torque. You can opt for the standard rear-wheel drive system with an eight-speed automatic transmission or upgrade to the all-wheel drive configuration, kitted out with a six-speed automatic. With all-wheel drive applied, expect to cover a 0 to 60 MPH acceleration run in 5.6 seconds before hitting a limited 143 MPH top speed.
Lexus’s Winning V-6 Formula
Toyota’s 2GR-FKS engine remains a benchmark for naturally aspirated efficiency and smoothness, despite being one of the oldest engine options in the compact luxury sedan segment. The design consists of an aluminum alloy block and heads that optimize heat dissipation and reduce front-end weight for sharper handling. The engine block is engineered for durability and refinement, utilizing a rigid dual-overhead cam valvetrain and a cooling system designed to maintain peak performance under spirited driving.
The engine also benefits from high-strength components, including forged connecting rods and a cast-iron lined block. These components manage thermal loads effectively without the complexity of forced induction. The D-4S dual-fuel injection system is a centerpiece of this engine. It combines direct and port injection for complete combustion, while improving fuel economy and eliminating the carbon build-up issues common in direct-injection-only rivals. Furthermore, Toyota’s Dual Variable Valve Timing-intelligent Wide allows the engine to switch between Otto and Atkinson combustion cycles, optimizing airflow across the entire rev range for both low-end torque and high-end power.
2026 Lexus IS Interior And Exterior Picture Gallery
The 2026 Lexus IS 350 debuts with refined design, upgraded tech, sporty interior, enhanced handling, and a 311-hp V-6.
Attractive Ownership Costs
According to Edmunds, the full cost to own a base rear-wheel drive 2026 Lexus IS 350 comes to $72,112. $19,592 contributes towards depreciation. It’s going to cost you $9,439 to maintain and $1,087 to repair over five years and 60,000 miles. You can also expect to spend $17,377 on fuel and $5,606 on taxes and fees. Kelley Blue Book indicates that you can expect to spend $6,485 on maintenance and $1,189 on repairs during the same period.
To support this longevity, Lexus provides a standard warranty package for the 2026 model that includes a 48-month or 50,000-mile basic warranty, a 72-month or 70,000-mile powertrain warranty, and 72-month corrosion coverage with unlimited miles.
iSeeCars indicates that an IS 350 will run for 17 years or 184,046 miles with a 40.3 percent probability of reaching 200,000 miles, which is an incredible feat for a luxury compact sedan.
How Much You Can Spend On Repairs
The 2026 Lexus IS 350 stands as a popular choice in the U.S. luxury sport sedan market, backed by substantial data and positive owner feedback. According to the consumer review section on Edmunds, the 2026 model currently holds a strong 4.3/5 average rating, with many owners highlighting its exceptional reliability and manufacturing quality as primary benefits.
Regarding long-term maintenance, the IS 350 is a more affordable option to maintain when compared to key rivals. RepairPal costs for key components include $185 for a stabilizer bar link kit, $420 for spark plug replacements, $1,240 for a new fuel pressure sensor, $2,450 for a new exhaust manifold, and $1,120 for new stabilizer bushings. Major engine work, such as a camshaft replacement, can cost $3,200.
2025 Lexus IS 500 Ultimate Edition Debuts With Bigger Brakes, Unique Finishes
The Ultimate Edition is available in the exclusive exterior color Wind, which is a metallic light gray shade
Lexus’s In-Depth Servicing Schedule
The 2026 Lexus IS 350 follows a maintenance schedule centered on 5,000-mile or six-month intervals. As part of the LexusCare program, your first two scheduled visits are complimentary. Minor services every 5,000 miles include tire rotations and multipoint inspections, while major services occur every 10,000 miles to replace the synthetic oil and filter.
Significant milestones include the 30,000-mile service, which requires replacing the brake fluid and engine air filter, and the 60,000-mile service, where spark plugs are replaced, and the transmission fluid is inspected. While the 2026 model has no active recalls as of right now, the IS 350 has a stellar recent record. The most notable recall in the last five years affected certain 2021 models because of a potential fuel pump failure that could cause engine stalling, though this was largely a carry-over from a massive industry-wide Toyota recall that has since been resolved in newer production units.
Fuel Consumption Estimates Could Be Better
According to the EPA, the 2026 Lexus IS 350 all-wheel drive model consumes an estimated 19/26/22 MPG on the city/highway/combined cycle, covering 382 miles on a single 17.4-gallon tank. Over the course of five years, you can expect to spend about $4,500 more on fuel compared to the average new vehicle, with an annual refueling cost of roughly $3,150 and a cost of $5.25 to drive 25 miles.
The rear-wheel drive system provides a slight bump in efficiency, returning an estimated 20/28/23 MPG, and can cover 400 miles on a full tank. Choosing this drivetrain reduces your estimated five-year fuel premium to $4,000, with an annual cost of $2,950 and a cost of $4.92 to drive 25 miles.
Lexus Keeps 2026 IS Sedan Relevant With These Changes
Lexus’ compact sedan gains some worthy changes, including the IS 350 F Sport.
A Fittingly Luxurious Interior Experience
While the platform is older than those used by many current models, the 2026 Lexus IS 350 features a modernized interior focused on driver ergonomics and high-tech connectivity. Standard across all trims is the upgraded Lexus Interface, which includes a 12.3-inch touchscreen paired with a matching 12.3-inch digital instrument cluster.
This system includes wireless Apple CarPlay and Android Auto, four USB-C ports, and a standard 10-speaker Lexus Premium Sound system. For comfort, every IS 350 includes NuLuxe synthetic leather upholstery, dual-zone automatic climate control, and a power tilt-and-telescopic steering wheel. The base F Sport Design trim, priced at $46,795, adds heated front seats and a newly standard wireless charging pad, while the F Sport trim benefits from ventilated front seats, a heated steering wheel, and aluminum sport pedals. This costs $49,245.
For those looking to enhance the sedan’s luxury or performance, several optional extras and packages are available. The Technology Package adds advanced driver aids like Traffic Jam Assist and a Panoramic View Monitor, while the F Sport Handling Package focuses on the drive with an adaptive variable suspension and a Torsen limited-slip rear differential.
If you are an audiophile, we’d suggest upgrading to the premium 17-speaker, 1,800-watt Mark Levinson Surround Sound system for a studio-quality listening experience. Additionally, the limited Special Appearance Package offers exclusive aesthetic and functional upgrades, including Hakugin Matte White paint, 19-inch BBS forged alloy wheels, and Triple-Beam LED headlamps, alongside the high-end Mark Levinson audio as standard for that specific configuration. This costs $61,385. All-wheel drive is a $1,610 option, while all models are sold with a $1,295 destination fee.
Sources: Edmunds, iSeeCars, J.D. Power, CarEdge, and the EPA