This Japanese Hybrid Sedan Feels Like a Lexus – But Costs Half as Much
There are budget-friendly alternatives to expensive luxury cars.
Hybrid engines improve efficiency without sacrificing power.
Japanese hybrid sedans from Toyota and Lexus are very reliable and packed with technology.
The idea of driving a luxury car is appealing. Whether it's the prestigious badges, robust build quality, or high-end materials that attract you to them, there's a lot to be desired. But going premium is costly, especially for hybrid cars. However, Toyota makes a reliable hybrid sedan that rivals the Lexus ES at a fraction of the price.
While the Lexus ES hybrid is worth every penny, the Toyota Camry XSE has similar styling, a deluxe interior that could be transplanted into a more expensive vehicle without question, and it shares the same engine with a bit more power. It's a reliable hybrid sedan with premium perks that make going green a power move rather than a pricey compromise.
For those on a tighter budget, the Toyota Corolla hybrid is a smart buy. It costs less than $25,000 new, is even more efficient, and retains its value well. There is a compromise in interior quality and equipment levels, but the Corolla is still a popular hybrid car with a seamless eCVT transmission.
In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from Toyota and Lexus.
For 2025, Toyota has improved the overall quality of the Camry. There are four grades to choose from, each with front- or all-wheel-drive configurations, starting from as low as $28,700 for the LE. Regardless of trim level, every Toyota Camry uses a 2.5-liter hybrid engine, whereas Lexus only begins to offer an electrified powertrain on the 300h and above. Selecting the hybrid brings the starting price of the Lexus ES up to $44,735.
In this post, we'll be comparing the range-topping Toyota Camry XSE to the equivalent Lexus ES 300h Ultra Luxury. Both get an impressive number of features as standard, but the Camry edges ahead as the best value Japanese hybrid sedan.
As mentioned earlier, Toyota discontinued combustion-only models of the Camry in favor of electrified powertrains. Now, this frugal sedan returns up to 44 MPG combined, which should reduce your gas bill. Despite using the same engine, the equally efficient Lexus drops 10 hp, which isn't a lot, but you might feel it when trying to overtake. That said, neither of these cars were built for performance. They're best enjoyed at a leisurely pace.
If you swapped the Toyota badges on the Camry XSE for any premium logo, it would fit right in. A pointed nose, sleek LED lights and a mesh front grille with sculpted air vents give it a chiseled jawline. Strong shoulder lines and 19-inch Smoke Gray alloys add muscle to the side profile, and this continues to the rear through a sports diffuser, black spoiler, racing-inspired air curtains, and dual chrome exhaust tips. Toyota is adding a nightshade edition for 2026, which will make the Camry even more aggressive.
Between all-over paint jobs and contrast roof designs, there's a palette of eleven colors available to choose from. Other features you'd normally find on more expensive cars include keyless entry, acoustic noise-reducing glass in the front windshield and front side windows, and heated wing mirrors.
Inside, the Camry XSE looks and feels expensive. A leather-trimmed shift knob matches the heated seats and steering wheel, which is complete with sporty paddle shifters. Though there's slightly less legroom compared to the Lexus ES, the Toyota has more headroom, and a white LED ambient light gently illuminates the otherwise dark cabin. Most of these are specific to the XSE trim, with the others getting a fabric interior.
It also gets a 12.3-inch digital instrument cluster over the LCD in the ES, and a 12.3-inch touchscreen with wireless Apple CarPlay and Android Auto integration for infotainment. Using wireless smartphone connections can drain the phone's battery, so there's a wireless charging pad for topping up.
Smart Key System
Push Button Start
Electric Parking Brake with Auto-hold
12.3-inch digital gauge cluster
Dual-zone Automatic Climate Controls
Both the Camry and ES spare no expense in terms of safety and reliability. They get a comprehensive suite of advanced driver assistance systems through Toyota Safety Sense 3.0 or similar Lexus Safety System+ 3.0. These standard packages feature useful convenience functions, such as dynamic radar cruise control, as well as critical preventative measures like lane departure alert with steering assist, pre-collision assist with pedestrian detection, and proactive driving assist.
The Toyota Camry is still one of the most reliable cars you can buy today.
On top of that, these Japanese sedans score highly on J.D. Power for quality and reliability. This time, the Lexus takes the lead at 88/100, but the Toyota isn't far behind at 86. In spite of that, the Toyota Camry is still one of the most reliable cars you can buy today, keeping total ownership costs low.
Toyota covers the Camry with a comprehensive warranty of up to three years or 36,000 miles and a powertrain warranty of up to five years or 60,000 miles. Both of these are one year shy of Lexus' cover, and the cover for hybrid-related components is for up to 8 years or 100,000 miles compared to 10 years or 150,000 miles.
However, both manufacturers provide a 10-year or 150,000-mile warranty for the hybrid battery itself, with Toyota being more generous by gifting new car buyers complimentary servicing of up to two years or 25,000 miles over just one year from Lexus. Plus, you get 24/7 roadside assistance for complete peace of mind.
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