What to consider before taking that “good deal” on a used luxury car
Buying a used luxury car can be tempting. Some models depreciate so quickly that their asking price practically tempts you to take one home. For example, a brand new Mercedes-Benz S 580 4Matic starts at around $131,000. Add just a few options and the price can easily exceed $150,000. That’s about triple the price of an average new car.
However, a 2021 Mercedes-Benz S 580 4Matic can be purchased for around $50,000. It’s about the same as a well-equipped Toyota Crown.
A Mercedes S-Class for a Toyota sedan may seem like the deal of a lifetime. And that’s just one example. A new Bentley Bentayga starts at around $210,000, but a used 2018 model can cost you around $60,000. If you’re in the mood for something with an Italian twist, you can get a decade-old Maserati Quattroporte for less than $20,000. The same goes for a 2020 Alfa Romeo Stelvio SUV.
These vehicles are cheap for a reason
Approach the bargain price with caution
There’s a reason these vehicles have such low asking prices. Maintenance and repair prices are extremely high. According to Consumptionmaintaining a Bentley costs around four times as much as an average car. There are ways to reduce your costs, but these vehicles will always be more expensive than a traditional car.
Worse yet, many luxury brands aren’t very reliable either. According to the JD Power 2025 US Vehicle Dependability Study, both Alfa Romeo and Mercedes-Benz rank below average in reliability.
Luxury vehicles are often more complex than traditional vehicles. The Mercedes-Benz S-Class has long been one of the most innovative vehicles you can buy. It was the first production car to feature a voice-activated car phone system. The first car without traditional bulbs (LED only). The first production car equipped with rear airbags. The downside to all this technology is that it introduces more points of failure.
Advanced technologies are also more expensive to repair. Air suspensions, carbon-ceramic brakes, magnesium wheels, etc. These are all potentially expensive repair bills. But it goes beyond just cool technology; even basic things cost more on a luxury car.
For example, they usually have larger, more expensive tires to replace. Larger engines mean more oil to perform an oil change. And these engines generally have higher compression ratios and will require more expensive premium fuel to run properly.
Access to qualified technicians to work on your luxury car is much more limited than for a mainstream car. You can find a good independent mechanic to work on your Chevrolet in almost any city in America. Finding someone qualified to work on your Aston Martin is going to be much more difficult. And when you find them, they will probably charge higher rates. They have had to undergo more in-depth specialized training and often have to purchase more expensive specialized tools. They will pass this expense on to you.
6 Things to Consider Before an Expensive Auto Repair
You don’t need to be a master mechanic to defend your vehicle and your finances.
Luxury cars can cut the budget in several ways
Insurance and depreciation are sometimes overlooked
Repairs and maintenance can cost the budget, but they’re not the only things to consider. Insuring a luxury car also generally costs more than a traditional car. According to CarEdge, insuring a Toyota Crown will cost around $2,474 per year. A Mercedes-Benz S 580 will cost around $5,118 per year to remain insured. That’s $220 more per month just for insurance.
There is also depreciation to consider. According to a recent iSeeCars study, the 25 vehicles with the highest five-year depreciation rates come primarily from luxury automakers. Two Maserati models made the top 10. In contrast, the 25 vehicles with the lowest five-year depreciation rates almost all come from traditional automakers.
The Porsche 911, Boxster and Cayman are the only exceptions. Once these expensive luxury cars are out of warranty, their value drops because people don’t want to end up with expensive repair bills.
10 sports cars that depreciate the most after 5 years of ownership
These 10 sports cars lose value faster than most, making them great used but expensive buys for first-time owners. Here’s why their depreciation is so strong.
The dream must not die
There are ways to limit your financial risk
If you do your due diligence, you may be able to enjoy the luxury car of your dreams without destroying your budget. The depreciation that allows you to buy the car in the first place will continue to work in your favor.
Let’s return to the example of the Mercedes-Benz S-Class. The price of a new 2021 model was around $140,000 for a well-equipped example. According to Kelley Blue Book, the trade-in value of this car is around $50,000. This is for a car in very good condition with 50,000 miles on the odometer. So if you buy it new for $140,000 and trade it in today, you lose $90,000 in depreciation alone.
However, the person who buys this car for, say, $60,000 cannot lose $90,000 in depreciation. The car could continue to depreciate, but at a much slower rate. If you drive it for five years and trade it in for $20,000, you’ll lose $40,000 in depreciation. That’s not great, but a lot less than the hit the original owner suffered.
Another way to limit your expenses is to purchase a certified pre-owned (CPO) vehicle. CPO programs vary by manufacturer, but typically come with a full warranty of between one and three years after the factory warranty expires. You still have the insurance costs and maintenance issues, but a CPO vehicle protects you from potentially catastrophic repair bills.
10 Used Vehicles That Offer Luxury and Technology Without the High Price
These 10 used vehicles offer luxury and high-tech features without a hefty price tag, making them a great choice for budget-conscious buyers.
Buy smart and consider total cost of ownership
Thorough research from the start avoids regretting a used luxury car later
Buying a used luxury car in itself is not dangerous. Getting caught up in your emotions and making an impulsive purchase is what can attract you. If you shop carefully, budget realistically, and leave room for maintenance, you can enjoy a car that once cost six figures for a fraction of the price.
Don’t spend too much financially on the purchase of the car and have a fund for unforeseen repairs. If you do this, you will be able to enjoy the luxury car of your dreams for much less than you thought possible.
