The Lexus IS 500 offers rare V8 power in a compact sedan at a reasonable price point.
Despite its age, the IS retains charm, blending classic driving feel with modern touches.
This may be the last chance to buy a naturally aspirated Japanese V8 new.

There aren’t a dozen ways to talk about the Lexus IS. The truth is simple: it’s old. Really old. But here’s the thing, age isn’t always a problem – I understand this point quite well. In fact, in a market full of overstuffed technology and boosted four- and six-cylinder engines, the IS’s age might be one of its greatest assets.

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The first IS landed here for the 1999 model year, and right away it stood shoulder-to-shoulder with the Germans. Lightweight, balanced, responsive, it went after the Audi A4, the Mercedes-Benz C-Class, and most importantly, the BMW 3 Series. Back then, the IS was the epitome of fun and a disruptor of the status quo.

Then Lexus lost the plot. For 2006, they turned it into something closer to an “old man car,” draining much of the spirit out of it. Thankfully, by the 2014 third-generation redesign, some of that edge came back. Since then, the IS has had a few tweaks, make that many. 2018 brought minor changes, 2021 reshaped the body, and 2026 will freshen the interior again. But underneath, it’s the same old bones. Old bones that still hold plenty of life!

2025 Lexus IS 500 | Photo: Matt St-Pierre

And yet, sitting before me in bright Flare Yellow, this isn’t just any IS. It’s the IS 500 Silver Anniversary special appearance package, the very top of the heap. Think of it as the grand finale for Lexus’s compact sedan. And judging by the 2026 update announcement that no longer mentions the IS 500, this could very well be the last time we’ll see it with that glorious badge.

The V8 That Defines It

Here’s why this car matters: a naturally aspirated 5.0L V8. Smooth, soulful, and loud in all the right ways, it’s the kind of engine young car enthusiasts like my son may never experience again in new metal. At 472 horsepower and 395 lb-ft of torque, it pulls like a proper performance sedan, hitting base BMW M3 territory while leaving AMG’s current four-cylinder C 43 in the dust.

And weight? At around 3,900 lb, it’s lighter than both. That’s right, the V8-powered Lexus is actually leaner than a base M3 with a manual or the turbocharged Mercedes-AMG C 43. It feels balanced too, the front end alive, responsive to inputs, and yet the ride remains plush. Adaptive suspension irons out the bumps, but without muting the communication from the tires up to the steering wheel.

This dual personality makes it special. The IS 500 isn’t about shredding racetracks. It’s about long stretches of highway, sweeping country roads, and a soundtrack that reminds you why V8s are magic.

If there’s one sore point, it’s the 8-speed automatic. Smooth in normal driving, yes, but slow to react when pushed. Even in Sport Plus, kickdowns take a fraction longer than you want. Unlike BMW’s M cars or AMGs, the IS 500 doesn’t have that razor-sharp gearbox response. Roll onto the throttle gently, and it rewards you, but mash it, and it hesitates. This car isn’t meant to be a track tool; it’s a cruiser that knows how to party now and then.

The Look That Turns Heads

The Flare Yellow paint is outrageous in the best way, sparkling with gold flake that gets teenagers pointing. If you have a teenager, you’ll understand that to grab some of their flaky attention is a feat unto itself. The stacked quad tailpipes wink at the old IS F, while the forged 19-inch BBS wheels with staggered tires (235s up front, 265s in the rear) give it the proper stance. It’s subtle and loud all at once.

Inside, the appearance package adds black ultrasuede with yellow stitching. The seats are comfortable, though lumbar support could be better given the $80K-plus price tag. The real upgrade for 2026 is the new 12.3-inch display and redesigned dash layout, which finally look current. My 2025 MY test car has the older setup, but even so, the cabin feels tight, focused, and premium.

Here’s where things get even more interesting. The IS 500 starts at $76,840. Add the appearance package and you’re still under $83,000 with fees. That’s the same money as a four-cylinder AMG C 43. It’s about $16,000 less than a base M3. Put simply, no one else is offering this kind of hardware at this price.

A Last Hurrah

Driving the IS 500 is a reminder of what we’re losing. The power builds slowly-ish, anticipation giving way to pure exhilaration as the torque comes alive. The V8 sings, the chassis stays planted, and yet you’re wrapped in Lexus civility. It’s the rare sports sedan that doesn’t demand you wring its neck to appreciate it. It won’t complain if you do, however.

This may be the last chance to buy something like this: a Japanese premium small sedan with a naturally aspirated V8. It’s not the sharpest, it’s not the newest, but it’s genuine. And in today’s market, that’s worth more than lap times.

At nearly a half-century old myself, I get it. The IS 500 is the grown-up’s performance sedan. Not a track toy, not a spec-sheet warrior, just an endlessly satisfying car to live with and to drive. And if this truly is the end, Lexus is bowing out in style.