Is it worth buying second hand luxury car-The pros and cons
Yes, provided you have done your research first. Compared to the “sensible” choice. You need to think about these below list before buying a used Luxury car.
How much will it cost you to insure it? How much more is the routine servicing going to be?
How reliable is that make and model in the long term, and how much more expensive are the non routine replacement parts? How much more will it cost you in fuel?
Reliability is the key issue, Some luxury cars are expensive because of high quality engineering and can last decades. Some luxury cars are less expensive because they are not built to last last beyond the first owner’s three year contract.
Once you are well informed, if you have not put yourself off the idea … then go for it!
Read more: What makes a Luxury car a Luxury car?
Should You buy second hand luxury cars?
Pros of buying a Used Luxury Car
Luxury cars are owned by people who love their vehicles and drive them carefully.
These are the best-maintained cars also tried and tested. You get the benefit of a good car at much less price as these cars are as good as new.
The used Luxury cars generally come a LOT cheaper and will still have a lot of funky gadgets and fancy things on them that only expensive cars will have.
So, they therefore also have a lot more things that can break, and service can be considerably higher for the same reason.
Here in many colder European countries like Denmark, Germany etc it’s a good choice if you can avoid rust – They salt the roads every winter, and rust is very common.
Add to that, the European car taxes are insane; we say “buy three, get one”. This makes cars quite expensive, so buying a preowned car is never a completely bad idea.
Benefits are that you have higher chances of getting a luxury car cheaper in a good condition.Good condition because the owners of these luxury cars have drove them very carefully.
Moreover these luxury cars tend to depreciate quite quickly, so it will be not a good option to be the first owner of a luxury car when you can get almost a new car at a cheaper price.
However, ask a seasoned mechanic about the specific make and model, and known problems. Every car has them.
What are the problems if I buy a second-hand luxury car
In case of luxury cars, though the asking price may be half of what a brand new will cost, be prepared for high service bills which includes replacement of parts.
Read more… : Luxury Cars are expensive to maintain.
Here are the things to go through while going for any second hand Luxury car
1) Service History ( Receipts from authorised service dealers)
2) List of parts being replaced (Receipts again)
3) Get it thoroughly checked by an expert mechanic you trust ( Never venture into second hand luxury cars without expert opinion) . Here you will get to know a lot… ie if the car has met with any minor accidents etc and being repaired/repainted to look new again and all of that.
4) Get to know the parts that requires replacement shortly ( if the cars has done 80K – 100k Kms) because the replacement will cost a bomb.
5) Check general drivability and external aspects.
Most luxury car owners reach the 100K Kms mark soon or sell their cars in 5 years ( after claiming depreciation for business use) which also helps them in not to deal with part replacements.
Nevertheless, Its a jackpot if you get a car which is chauffeur driven as most businessmen treat their cars with lot of respect. All the best.
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There are a few benefits that most people don’t know about here are a few:-
as you are looking to buy a used car here are a few pointers that you must know.
low depreciation rate– the rate of a used car doesn’t decline as rapidly as compared to a new car.
Remember , that someone else has paid for a big portion of the largest expense you would otherwise face being depreciation.
The down sides are that what makes these vehicles “luxurious” is too often many gadgets and complications that break down and are costly to repair with out warranties..
The best defence is to find older very low miles cars that are in superlative condition.. this takes time and effort and patience and resolve..
The rate of a used car declines as soon as the car is brought in the market in just a few months their is a drop in the market.
Affordability– while you are purchasing a used car the rate of the car automatically drops as time passes by which makes it more affordable for the interested buyer.
These are a few pointers that you must know if you are interested in purchasing a used car.
Cons of Buying Used Luxury cars
A used luxury car will still cost a lot to insure and expensive to maintain, take a lot of fuel (unless it’s something like a Lexus hybrid or a Mercedes diesel) and cost a lot to service and repair.
However, if you can meet these costs, then the cash saving on purchase is well worth it. It’s also a good choice for someone who wants a fancy car but doesn’t want to be ostentatious.
Buy a used Range Rover that’s a few years old doesn’t scream, “Look at me, I’m rich!”, the way buying a new one does.
A well maintained used luxury car is always worth buying .
A well maintained used luxury car is always worth buying . Go through the following points before buying one.
1.) Get the service history of the car checked to ensure that the car has been serviced timely or not .
2.) Check the tyre life too as the tyres of a luxury car can cost a fortune while replacing.
3.) Check if all the features are working or not .
4.) Locate a well none service centre for your luxury car to stay happy while owning one .
Audi A4 , Mercedes E220d , Skoda Superb , BMW X1, etc.
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Is a used luxury car a better value than a new economy car?
It depends on several factors as all cars (and all owners) are not created equal, first let’s look at the obvious…
New cars depreciate massively the second a title is issued and a plate is screwed on the back (and the front if you live in one of those states) and about 30% of the value evaporates.
Imagine taking about $5,000 to $15,000 and literally throwing it in a dumpster and lighting it on fire, except without the benefits of having a dumpster fire.
However, in exchange for that financial tragedy you get a warranty that covers pretty much everything that can go wrong with the car over the next several years.
If you instead buy a used luxury car, someone else took the depreciation hit and the car will loose value slowly from year to year.
Depending on the car and how well it was cared for, this can be a bargain. But it can also be a nightmare.
All luxury cars are loaded with high tech gizmos that are nightmarishly expensive to repair and on top of that their mechanical and electrical systems can be more complex and failure prone.
Cars like the Maserati, Mercedes benz S class, BMW 7 Series, Cadillac Deville, and Lexus Automotive vampires ready to suck your savings account dry.
But there are other cars that are solid automotive choices that will still run perfectly well after you have grown tired of them and they have racked up hundreds of thousands of miles.
Looking for Buying a used car? Get Your Full Vehicle History Report With One Click
Tips to buy Used Luxury car
There are many ways you can buy a second hand Luxury car( make sure that it is the second hand( I mean just 1 previous Owner).
- Buy your used luxury car from a known source, (Friend, relative etc.)
- There are car dealers who have their own second hand shops . They provide all brands of car with a limited warranty as well.
- Other 3rd party websites that sell used luxury cars
It is always better to buy from a known source if you have seen the person use the car. You will know what the worth of the car really is.
The car dealers can be the next choice as you can buy with Warranty but there might be few unknown problems which you might not easily find. Better to check with a mechanic / test drive and do VIN History Check
Same applies for 3rd party dealers as well and additionally you should also be aware of fake ads.
You should always look for direct seller and avoid brokers if you are going through 3rd party websites.
Dealers / Brokers might cheat and will have additional hidden charges.
So once you have decided your source and had a look at your car, do a test drive and verify yourself if all works properly which includes braking, ignition, lights, AC, wipers, doors, security system, tyres, Instrument panel, RC, tax and Insurance documents and so on.
As I mentioned earlier taking a good mechanic with you or a friend who knows in and out of cars would be good.In few websites given above provides valuation of old cars when you search the model, year and kms run.
Do some analysis before visiting so that you will know of the price quoted is favourable. And don’t fall for huge discounts there might be a catch.
Pros of buying a used Luxury car:
- You get a luxury cars at the price of half the original price.
- You are not affected by depreciation as it will be suffered by the first owner only.
- The experience of owning and driving a car costing north of 40+ Lakhs on road at a fraction of that cost.
- Bragging rights /social status/ showing off.
- Performance and comfort – you won’t believe it until you drive one.
- Safe. Period. Safer than a D segment car and below.
- Superb driver assistance and creature comfort.
Cons of buying used Luxury cars
- Hard to find a reliable used luxury car.
- Most of the car is controlled by electronics and they are not reliable in any car be it a new one or old. Repair and replacement can cost a bomb.
- Higher insurance and service costs. Insurance can cost north of a Lakh and normal service costs are always in mid to high 5 digits.
- Costly parts. For example single headlamp of a Mercedes Benz E class costs about 1.5 Lakhs. These cars also require frequent tyre and brake pads replacement since these cars are mostly performance oriented. Search for the cost of brake pads of BMW, Mercedes etc. You will be surprised.
- Replacement parts may not be readily available. Will have to wait for imports.
- High maintenance. Those nicks and bruises in the regular traffic can give you a heart attack.
- Once out of warranty then the real pain starts.
- Need to use that premium fuel/high octane /fuel additives for getting performance.
- Hard to resell if you don’t have a good buy back plan from the dealer. People doesn’t go for a second/ third owner 7+ year old used luxury cars.