Luxury vehicles come with an undeniable appeal. Their premium features, comfortable interiors, and impressive performance offer an unmatched experience to every driver. However, buying a luxury car is more complex than getting an ordinary vehicle.
With high resale values and additional costs such as pricier parts, you must ensure you get a good deal. Read on and let’s explore how to ensure you are getting a good value on the price of your luxury car. Then you won’t be overpaying for the car you buy.
Understanding Luxury Vehicle Market Trends
Since luxury vehicles all have above-average resale values, their depreciation rates are lower than mainstream brands. However, depreciation varies significantly even within luxury automakers. For example, Land Rover and Maserati models depreciate faster than Mercedes-Benz and Lexus vehicles on average.
Carefully researching resale trends for the specific make and model can prepare you to better evaluate asking prices. Resources like WhatCar and Parkers have helpful model-specific data on residual values over time.
It’s also useful to compare luxury brands head-to-head. This is where you need to compare factors such as:
- Critics review
- Consumer satisfaction
- Dependability ratings
- Ownership costs
- Safety features
- Technologies
For instance, Lexus tends to rate higher than BMW and Mercedes-Benz for long-term reliability in surveys. On the other hand, BMW and Audi tend to have sportier driving dynamics. These contrasts matter when evaluating the value of a used luxury vehicle.
Checking Vehicle History
A vehicle history report is non-negotiable before buying any used car, but particularly crucial on a higher-valued luxury vehicle. In the UK, you can obtain reports from checks like Experian, HPI, and Carvertical. For example, if you are considering buying a used Mercedes, you can do a Mercedes spec check using a VIN checker to get the detailed information you need. Feed the 17-digit VIN into the database to uncover records related to ownership, accident damage, outstanding finance, stolen status, and mileage discrepancies. Be prepared to walk away from vehicles concerning history or accident records, as these issues can lead to lasting mechanical problems.
Researching the Vehicle
Once you’ve narrowed down the ideal luxury make and model for your budget and needs, shift focus to researching specifics about the actual vehicle. Resources like Kelley Blue Book (KBB) and Edmunds allow you to look up market pricing guidance based on the car’s model year, mileage, condition, location and options. This establishes reasonable value thresholds to evaluate asking prices against.
It’s also wise to research what type of regular maintenance the vehicle needs and what common issues plague its model year or generation. Forum threads on platforms like Edmunds and luxury-specific forums like MBWorld (Mercedes) and BimmerFest (BMW) can provide owner experiences about things to look out for. Consider both preventative maintenance needs that add costs, like timing belts, as well as widespread defects.
Conducting a Thorough Inspection
The keys to any used car purchase apply even more critically to luxury vehicles given their complexity and repair costs. Be sure to thoroughly inspect each car inside, outside, underneath and under-hood before buying.
Or better yet, pay a professional inspector (like an AAA inspector) for an unbiased mechanical analysis. They can provide an objective checklist of issues and determine if everything mechanical is in good working order. Carefully test all luxury features too during inspection, from massage seats to adaptive cruise control systems.
On the test drive, pay attention to vibration, handling, acceleration and brake feel which can indicate suspension, wheel balance or transmission problems. Notice noises too; luxury cars should maintain comfortable, quiet rides without creaks, squeaks or engine sounds. Don’t ignore even minor issues since repairs cost substantially more on European luxury models.
Test Driving the Vehicle
Don’t just take a luxury vehicle around the block; schedule an extensive 20-30 minute test drive to stimulate your normal use, including highway driving and parking. Assess ride comfort over bumpy roads and at higher speeds along with engine noise and steering responsiveness.
Determine whether the cabin layout, seating position and controls operate intuitively for your preferences too. If anything concerns you or already feels aged, better options likely exist. Logic should prevail over emotions with such large purchases. And by all means, don’t ignore red flags on the test drive no matter how much you want the car!
Negotiating the Price
Even after thorough research and inspection, skillful negotiation tactics lead to the best deal on a used luxury vehicle. Reference your initial research to support an offer at or slightly below fair market price ranges for the car’s specifics like mileage and condition. Point to any imperfections found on inspection to request money off too. Discuss negotiating warranty inclusion as well to offset future repair risks.
Luxury dealerships expect experienced hagglers for pre-owned vehicles, so don’t be afraid to firmly stand by a fair offer below asking prices. Just come armed with facts. And know when to walk away if unreasonable differences emerge—patience pays when making large purchase decisions.
Understanding Financing and Insurance Costs
Very few buyers purchase luxury vehicles outright. But higher purchase prices equate to more interest paid over time, so shop financing terms aggressively. Secure pre-approvals from banks or credit unions before visiting dealerships as leverage, then compare to dealer financing too. Variables like loan length, APR, and down payment size each shape monthly payments, so run the math thoroughly and resist simply minimizing upfront costs.
Similarly, don’t underestimate how coverage costs increase on a luxury vehicle, especially for collision and comprehensive claims. Obtain quotes from insurers like Adrian Flux and Lancaster specifically tailored for the year, make, and model luxury car you want to buy. Then determine if premiums still fit within your budget. It pays to understand these secondary ownership costs upfront before overextending your finances in the excitement of a new luxury car.
Final Words
Although buying a used luxury vehicle involves more effort and consideration than an ordinary car, proper diligence ensures you find an excellent value. Spending time researching can help you to buy the car at the right price tag. Patience truly pays off for more informed decisions and better long-term satisfaction. So, use this guide to embrace the hunt for your perfect luxury vehicle match that hopefully accompanies you on many wonderful journeys for years to come!
