When it comes to owning a luxury car, many people assume that buying a brand new model is the only option. However, there are numerous advantages to considering used luxury cars. While a new luxury vehicle may have its allure, the appeal of buying a used luxury car should not be underestimated. In this article, we will explore the advantages of purchasing a pre-owned luxury vehicle and why it can be a smart choice for discerning buyers.
Affordability:
One of the most significant advantages of buying a used luxury car is the lower price tag. Luxury vehicles often come with hefty price tags when new, making them out of reach for many potential buyers. However, as soon as a luxury car leaves the dealership, it undergoes significant depreciation. This means that buyers can find pre-owned luxury cars at a fraction of their original price, sometimes up to 50% or more. By purchasing a used luxury car, you can experience the prestige, comfort, and performance of a high-end vehicle without breaking the bank.
More Bang for Your Buck:
When you opt for a used luxury car, you can get more features and options for the same budget compared to a new non-luxury vehicle. Luxury cars often come with cutting-edge technology, advanced safety features, premium materials, and high-end audio systems. By buying used, you can access these high-end features at a more affordable price. Additionally, since luxury cars are built to last and maintain their quality over time, you can still enjoy a range of modern amenities and luxurious comforts even in older models.
Lower Insurance Costs:
Insurance premiums are typically higher for luxury vehicles due to their higher value. However, when purchasing a used luxury car, insurance costs tend to be lower compared to insuring a new luxury vehicle. This is because the insurance company assesses the value of the car at the time of purchase, taking into account its depreciated value. Therefore, buying a used luxury car can save you a significant amount of money in car insurance premiums over time.
Lower Depreciation:
As mentioned earlier, luxury vehicles tend to depreciate rapidly in their first few years. By buying a used luxury car that is a few years old, you allow the original owner to take the initial depreciation hit. Once a luxury vehicle reaches a certain age, the depreciation slows down, and its value stabilizes. This means that when you decide to sell your used luxury car in the future, you may recoup a significant portion of your initial investment, depending on the model’s popularity and condition.
Here are a few examples of the 2 year price drop for popular luxury models. The 2021 price and mileage was obtained from a specific unit found for sale at the time of this writing.
| Model Name | 2023 Avg. MSRP | 2021 Sale Price | 2021 Mileage | 2 Year Value Drop |
| Audi A8 | $88,895 | $61,950 | $8,726 | -30% |
| BMW 7 Series | $107,045 | $73,995 | $22,500 | -31% |
| Cadillac Escalade | $116,140 | $106,946 | $17,788 | -8% |
| Genesis G90 | $94,675 | $55,941 | $14,595 | -41% |
| Land Rover Range Rover | $162,875 | $82,991 | $22,253 | -49% |
| Lexus LS | $96,585 | $85,999 | $27,930 | -11% |
| Maserati Quattroporte | $130,095 | $76,958 | $7,045 | -41% |
| Mercedes-Benz S-Class | $172,900 | $92,934 | $26,261 | -46% |
| Porsche Panamera | $151,050 | $77,998 | $20,190 | -48% |
Well-Maintained and Certified Options:
When buying a used luxury car, there is often the option to choose a certified pre-owned (CPO) vehicle. CPO programs are offered by many luxury car manufacturers and involve rigorous inspections and repairs to ensure the vehicle’s quality and reliability. CPO cars often come with extended warranties and additional benefits, such as roadside assistance and complimentary maintenance. This gives buyers peace of mind knowing that their used luxury car has undergone thorough testing and meets specific manufacturer standards.
Wide Variety and Availability:
The used luxury car market offers a vast selection of models, years, and trim levels to choose from. Whether you have a specific luxury brand or model in mind or are open to exploring different options, the used market provides a wider range of choices compared to the limited selection of new luxury cars available at dealerships. With a little patience and research, you can find the exact combination of features, color, and specifications that suit your preferences.
Wrapping It Up
Buying a used luxury car offers numerous advantages that go beyond the financial aspect. From affordability and more features for your budget to lower insurance costs and reduced depreciation, there are compelling reasons to consider the pre-owned luxury car market.
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