What’s at the top of everyone’s minds right now? More than likely, affordability. Things are just flat out expensive right now. To us, it’s still okay to want luxury, however. Luxury cars offer you not only a badge and status above the “standard vehicles” of the road, but they can also offer you quiet, comfortable cabins that take you away from the stresses of life. Not to sound like a luxury car commercial or anything.
Surprisingly, though, with the average cost of a new car being around $47,000 right now in the US, you can actually find luxury hybrid vehicles (that typically cost more than a standard powertrain) that actually cost less than a brand-new Toyota Corolla. There was a time in the automotive world when hybrids were a luxury in and of themselves, instead of commonplace like they are now. It begs the question: Would you rather have something brand new, even though it’s standard, or a slightly used luxury hybrid that might get the same gas mileage, but is all around better?
The New 2026 Toyota Corolla Starts Just Under $25,000
With everything as expensive as it is, the Toyota Corolla might still seem cheap. There was a time, however, 20 years ago, when you could purchase a brand-new Corolla for $14,545. With inflation that actually does equate to around the mid-twenties, but it seemed and felt much cheaper back then. With higher demand for safety tech, hybrid options, and better interiors, even the Corolla isn’t safe from the expensive pricing gambit.
The 2026 Toyota Corolla LE has a starting MSRP of $24,320, with delivery. The top-of-the-line Hybrid XLE comes in at a whopping $30,353. Again, comparable to deflated money in 2006, but that doesn’t mean that you get the prowess and refinement that you would out of a luxury car for the same price.
Specs And Features
To be fair, the Toyota Corolla isn’t meant to be expensive, but it is far more advanced than it used to be and is much more well-equipped for the segment:
- 2.0-liter four-cylinder or hybrid powertrain option
- Up to 50 MPG combined with the hybrid
- Toyota Safety Sense with adaptive cruise and lane keeping
- Standard touchscreen with Apple CarPlay and Android Auto
- Digital gauge cluster with a modern interior layout
- Available wireless charging and a JBL sound system
It also comes with a continuously variable transmission (CVT), and the SE comes standard with LED headlamps. This generation has also earned IIHS‘ Top Safety Pick, earning “good” and “good+” in all pertinent categories. So if you’re not sold on the prestige of a luxury hybrid, this is still a great choice.
The Toyota Sedan That Rivals The Lexus ES For Comfort
This storied nameplate offers luxury features and comfort that rivals the Lexus ES, blurring the line between mainstream and luxury.
Entry-Luxury Hybrid Depreciation Shift
Entry-level luxury cars sit in an interesting position. It combines two opposing forces: strong brand reputation and weaker resale performance. However, because of their higher starting prices and equally higher cost of maintenance, they depreciate faster than standard cars. Rising new car prices have also helped to shift buyers’ behavior towards used vehicles because of this.
Early Steep Depreciation Creates Deals
Buying a brand-new car can feel like a scam sometimes, anyway. The sales agent wants to tack on a bunch of accessories and packages that you really don’t need, and the Sirius Satellite mail offerings are never-ending. Plus, the average new car loses nearly 20 percent of its value within the first year of owning it and 30 percent in the second year. Some higher-end vehicles lose between 40 and 50 percent, depending! The good news is that, even though the initial depreciation is steep, it tends to even out later on.
Sedans Take A Bigger Hit Than SUVs
This comes down to basic economics. People simply don’t want as many sedans as they do SUVs. SUVs make up the majority of sales in the United States, and this directly impacts their resale value. This pertains not only to the Corolla but also to the luxury hybrid sedan. Not to mention, the added practicality of SUVs continues to pull buyers away from traditional sedans.
Why This 5-Year-Old Hybrid Beats Most Brand-New Cars In Reliability
If you’re looking for a reliable used hybrid car today, this Japanese sedan is one of your best bets.
You Can Get A 2019 Lexus ES 300h For Corolla Money
Yes, you read that correctly, a 2019 Lexus ES 300h lands within the same price range as a Toyota Corolla. It does sound impossible until you look at the data. Let’s go over the specifications for this vehicle first.
- 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
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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 came out in tandem with the Lexus LS. Lexus dealerships only had one model to speak of and needed something that could be sold at a slightly better value than the long limousine LS. Thus, the ES was born. It competes with the E-Class and the 5 Series in the same segment, but was actually not the first-ever luxury sedan to feature a hybrid. That badge goes to the GS.
Lower Ownership Costs
Part of the reason Corolla owners buy a Corolla is that they’re one of the most, if not the most, reliable vehicles on the road today. Lexus has also, time and again, been rated one of the most reliable brands on the market. According to CarEdge, the cost of maintenance after ten years of ownership will be around $5,925. On a luxury sedan, that’s almost unheard of.
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Still Feels Like A Modern Lexus
The Lexus ES feels like it’s still a modern Lexus because this iteration has been around since 2019. It’s since had a facelift or two to keep it relevant, but the interior layout, the materials, and soft-touch surfaces still align with what luxury buyers want. If you get the F Sport, it comes with dampers and a special edition interior that makes it more sporty than luxurious as well.
2019 Redesign Keeps Styling Relevant
The 2019 redesign was a huge turning point for the ES. It moved it onto Lexus’ GA-K platform, which is still quite a relevant platform that even mid-size family SUVs like the new Highlander BEV were built on. It has a widescreen infotainment, a digital gauge cluster, and improved driving dynamics thanks to this new platform that you wouldn’t find on a Corolla.
Pricing Remains Well Within Many Budgets
The 2019 Lexus ES 300 dominates in the pricing category, no matter which trim or powertrain you choose. The base model ES 350 has a KBB fair purchase price of $24,400. If you really want something nice, however, you can get the top-of-the-line ES 300h Ultra Luxury sedan for $26,500. That’s still $4,000 cheaper than the top-of-the-line Corolla. You get heated and ventilated power-adjustable seats, ambient lighting, and a tri-zone automatic climate control system, plus much more for that money.
Sources: Toyota, Lexus, J.D. Power, KBB