Should I Buy a Used Luxury Car?
Used cars are hot-ticket items in the current market, so price-conscious shoppers may be weighing their options when it comes to purchasing a vehicle of any kind. Most people who want the tech-laden opulence of a used luxury vehicle aren’t eager to break the bank for their purchase.
Shopping smart and taking a variety of factors into account when making your decision can help ensure you get the most out of your luxury vehicle purchase without overpaying.
A Previously Owned Luxury Car’s Valuation
Cars depreciate over time – especially luxury vehicles. If you are buying a new vehicle this process starts as soon as you drive it off the lot. Luxury cars tend to have steep initial depreciation, which is great news for used car buyers.
For example, BMW 7 currently has the steepest depreciation at 72.6 percent in five years. That’s a roughly $74,000 drop. BMW 5 is second at 70.1 percent, or $47,000. That means used vehicle shoppers looking for those vehicles are getting a huge discount on a luxury vehicle that’s only five years old. The Maserati Ghibli and Audi A6 also feature highly on the depreciation list at 69 percent in five years.
In all, eight out of 10 of the highest depreciation vehicles in 2021 are luxury vehicles.
Previously owned vehicle shoppers looking for luxury vehicles still won’t be getting the lowest prices on the lot, but they will likely be getting the highest rate of savings compared to the new vehicle sticker price.
Previous Owner Already Paid Most of the Depreciation
By the time you buy a five-year-old luxury vehicle the bulk of the depreciation cost has been paid by the previous owner or owners. When you buy a 2017 or 2018 luxury vehicle in 2021 you might only pay 70 percent of what the original owner paid for it. That means you will likely end up spending $30,000 to $35,000. Your luxury vehicle might depreciate another 50 percent by the time you go to sell in 2026, so instead of losing $70,000 to depreciation on a luxury vehicle you bought new, you will instead only lose about $15,000 to depreciation.
A Golden Opportunity
Why let a good opportunity go to waste? Used luxury vehicles, when properly maintained, can still provide drivers with a hundred thousand miles or more. There are several luxury car makers that have a reputation for dependability and longevity, especially brands like Lexus, Mercedes Benz and Porsche.
Spending $20,000 or $30,000 to purchase a well-maintained luxury car often makes drivers feel like they are getting a steal. Plus, if a buyer goes with a used luxury vehicle, they may be buying something that is no longer easily found on the market (or that may be an older version of a popular new model). They may end up enjoying unique and hard-to-find attributes at a third of the price as a new luxury vehicle.
A Car’s History
Many used luxury vehicles come with a maintenance and accident report. You’ll have an idea of what has happened to the vehicle, how well its been maintained and whether you see any warning signs for future car problems.
You also get years of testimonials from previous make and model owners on the internet. If you buy a five-year-old luxury vehicle you aren’t getting any surprises. You can check online and learn about the benefits and drawbacks experienced by people who have owned and driven the same type of car for years.
Get a Great Preowned Luxury Vehicle from Easterns Automotive Group
Car shoppers throughout Virginia and Maryland will find a diverse variety of used luxury vehicles in our inventory. We encourage you to call us at (877) 867-0641 or visit one of our eight dealership locations to find out more about our previously owned cars, trucks and SUVs.