It’s late on a Friday night, and you’re scrolling through car listings while sipping a cold drink. A sleek BMW 5 Series catches your eye—perfect leather interior, low miles, and a price tag that’s surprisingly reasonable.
The question pops into your head: are used luxury cars a good investment?
The short answer? It depends on how you define investment.
Let’s break it down.
Understanding Car “Investment”
Cars, unlike houses or stocks, don’t appreciate over time. But a smart purchase can save you money, give you more features for your dollar, and hold its value better than a new vehicle.
Used luxury cars often hit the sweet spot because:
- Depreciation has already happened – Luxury cars lose 40–50% of their value within the first 3–4 years. Buying used means someone else already absorbed that hit.
- You get premium features for less – Heated seats, advanced safety tech, premium sound systems, and leather interiors that would cost thousands more in new cars.
- Some brands hold value better – Lexus, Acura, and Porsche are among the best at retaining value.
Top Reasons Why Used Luxury Cars Make Sense
1. Lower Cost of Ownership
Insurance rates and registration fees are often lower for used vehicles compared to brand-new models.
And if you buy a model known for reliability, like a Lexus RX or Acura RDX, you avoid the big maintenance headaches.
2. Certified Pre-Owned Programs (CPO)
Many luxury brands offer CPO programs with extended warranties and rigorous inspections, giving you the peace of mind that you’re not buying someone else’s problem.
3. More Car for the Money
A 3-year-old BMW 3 Series might cost the same as a brand-new Toyota Camry. Which one would you rather drive?
The Risks to Consider
1. Maintenance Costs
Luxury cars have premium parts and service costs. While brands like Lexus are known for affordability and reliability, European models like Audi or BMW can be pricier to maintain if they’re out of warranty.
2. Older Tech
Depending on the year, older infotainment systems or safety tech might feel outdated. However, buying a 2–4-year-old model often strikes the right balance.
3. Resale Value
While buying used helps minimize depreciation, not all luxury cars hold value equally. Research models with strong resale scores to protect your investment.
Are Used Luxury SUVs a Better Bet?
SUVs like the Lexus RX 350 or Audi Q5 are consistently in high demand—especially in Chicago, where winter-ready AWD systems are non-negotiable.
SUVs tend to hold value better than sedans because of their versatility and popularity.
FAQs
Which used luxury brands are the most reliable?
Lexus, Acura, and Mercedes-Benz are known for long-term dependability. Lexus often tops J.D. Power’s reliability studies.
Do used luxury cars come with warranties?
Many do—especially through Certified Pre-Owned (CPO) programs, which include factory-backed warranties and multipoint inspections.
Is it cheaper to maintain a used luxury car?
If you choose brands with strong reliability, yes. Models like the Lexus ES or Acura TLX cost far less to maintain compared to German brands.
Final Thoughts
Used luxury cars may not grow in value like a stock, but they can be a smart “investment” in comfort, safety, and long-term savings if you pick the right model.
Would you rather spend more on a new car with fewer features, or enjoy luxury at a fraction of the cost?
If you’re near Plainfield, IL, come check out our inventory of affordable used luxury models here at Premiere Motorsports.
