The turbocharged Lexus SUV that's now cheaper and more powerful than its RAV4 brother

Check out any list of slow-depreciating vehicles, and there are two names you're likely to see: Toyota and Lexus. We've covered cars like the Toyota Supra, which is still selling for like-new prices six years later, as well as downmarket cars like the Corolla hatchback, which refuse to drop even a third of their value in the first half-decade on the road.

Lexus models are doubly impressive for their stubborn approach to depreciation, considering that luxury models tend to lose value much quicker than mid-market and budget cars, while it might take the better part of a decade for something like a used Lexus LC500 to become affordable.

If we want to get an idea of which brand holds its value the best, comparing Toyota's top-selling RAV4 to its Lexus counterpart, the NX, is one way to go about it. Let's take a look at what these SUVs were worth five, 10 years ago, and what they're worth today...

Luxury Models Almost Always Depreciate Faster

Calculating a single-owner, five-year-old model, and assuming 13,500 miles a year, here's what a ten-year depreciation projection for value retained looks like from CarEdge...

At a glance, you can tell right away that the Toyota RAV4 holds its value considerably better than a Lexus NX. This results in a scenario wherein it makes more sense to buy the mid-market model new, and it makes more sense to go with the luxury model if you're buying used.

What Does 46.60% Retained Value Look Like In Dollars And Cents?

Comparing prices at five critical points in the depreciation life cycle, here's what we get.

While the Lexus NX loses its value much more quickly than the RAV4, it takes nearly several years for the prices to even out so that the Lexus NX can be had for cheaper than the Toyota RAV4. Year eight is the tipping point, where an eight-year-old RAV4 will run you $19,597, while an NX will cost you just $18,734, and the gap gets wider from there so that a decade-old NX is almost $3,000 cheaper than a comparable RAV4.

Honestly, we're seeing no surprises so far. A Lexus will tend to hold its value better than a comparable BMW or Mercedes. A BMW X3, for instance, loses more than 50% of its value in the first two years, during which time the Lexus NX has only lost a little over 45% of its value. But you're comparing a mid-market car to a luxury vehicle. The mid-market car is almost always going to come out ahead when it comes to retaining its value.

How Do These SUVs Hold Up Across The Whole Industry?

It's one thing to compare these SUVs to each other, but there are a lot of used compact SUVs out there to pick from. If we select an assortment of small family vehicles across various segments, and take a look at what they're worth five years down the line, here's what we get...

The Toyota RAV4 is, unsurprisingly, the slowest depreciation out of the bunch. Japanese and Korean models like the Hyundai Tucson and Mazda CX-5 hold their value pretty well, retaining more than half of their MSRP after five years, and the same goes for the Volvo. Mercedes-Benz and BMW both lose more than half their value after the first half-decade, making the Lexus NX a strong retainer in the luxury segment, even if it can't keep up with the RAV4.

Low Demand = Fast Deprecation

Coming in dead last in our sampling is the Dodge Hornet, a slow-selling rebadgedAlfa Romeo Tonale. This is essentially a compliance model, which means that it exists primarily to allow Dodge to meet the letter of the law when it comes to emissions regulations.

We actually kind of like this SUV, praising its optional 288-horsepower powertrain and responsive brakes, and it's a shame that Dodge doesn't seem to care if you buy it or not. But that's a tangent for another day. The point is, it's not in high demand, used or new, so it's losing value like it has holes in its pockets.

Is There A Sweet Spot For Buying A Slow-Depreciating Car?

When a vehicle takes too long to lose its initial value, you almost feel stupid buying it used. The 2022 Ford Maverick, for instance, still commands a Kelley Blue Book fair market price almost equal to its initial MSRP. You're not even saving any money in that instance, you're just saying "gimme one with fifty thousand miles on the odometer already."

We would argue that there is a sweet spot for buying a slow-depreciating vehicle used, but it's not a one-size-fits-all solution. Some used cars will deliver the most value at three years, others at five years, and some may take a decade before you could call the asking price a bargain.

Buy The RAV4 New, Buy The NX Used

If you're looking for an older model, you're going to be spending less on the Lexus NX than you will on the RAV4 past the eight-year mark. If you're buying new, the RAV4 costs less up front, and retains its value better, so you'll get a sweeter deal when it comes time to trade-in.

But we're burying the lede here.

Full disclosure: if you're buying used, we will find an excuse to steer you towards the Lexus anyway, because our favorite engine in either of these SUVs would have to be the turbocharged 275-hp 2.4-liter turbo-four, which has featured in the Lexus NX 350 since the 2022 model year.

You've got a few more model years to pick from with the Lexus NX if you want the turbo. Even if a three-year-old Lexus NX still costs a bit more than its mid-market counterpart, that turbo-four is reason enough to justify the added cost in our book.

Sources:CarEdge, Kelley Blue Book.