Used Luxury Car vs New Mainstream: Edmunds Experts Weigh Pros and Cons
The car experts at Edmunds have broken down the key attributes prospective buyers ought to consider when deciding between a used luxury vehicle and a brand-new mainstream model. For about the same price as a new mainstream car, you could get a used luxury car instead, offering an intriguing alternative for shoppers.
Condition and Warranty
Buying new guarantees a pristine vehicle, first ownership, and the full new-car smell experience. It also provides the security of a full manufacturer’s warranty, typically covering the first three years for a bumper-to-bumper warranty, plus an additional two years for the powertrain. In contrast, a used luxury car will likely have minor cosmetic wear and tens of thousands of miles on its odometer, with the new car aura long faded. Luxury brands do commonly offer a four-year bumper-to-bumper warranty, and it’s common for luxury dealerships to sell used vehicles as certified pre-owned, which includes an inspection and an extended warranty. Still, buying new ensures you get the freshest vehicle possible. Winner: new car.
Style and Performance
Luxury cars are meant to be aspirational, featuring nicer interior materials, more elegant designs, and sportier handling than non-luxury models. Unique wheels and enhanced appearance set luxury cars apart on the road, with more powerful engines delivering livelier performance. For example, a 2023 BMW X3 offering up to 382 horsepower is more fun and engaging to drive than a Honda CR-V. However, performance can come at the cost of fuel efficiency. The best a 2023 X3 can get is an EPA-estimated 25 mpg combined, while the CR-V with its available hybrid powertrain gets up to 40 mpg combined. Many luxury engines also require expensive premium fuel, further increasing ownership costs. But style and performance are what many people desire, and a luxury vehicle won’t disappoint in this regard. Winner: used luxury.
Features
Newer cars offer the latest tech, such as large touchscreens and advanced driver aids that help make driving easier. But these types of features typically debut earlier on luxury models before trickling down to mainstream lineups. A used BMW X3 and a new Honda CR-V, for example, both offer wireless connectivity for Apple CarPlay and Android Auto, wireless phone charging, and adaptive cruise control. There can be some upside to buying a used luxury car if you want the fancy stuff. On a used X3, you can get front seats with additional power adjustments, ventilated front seats, a premium 16-speaker audio system, and a head-up windshield display. Honda doesn’t offer any of these on the CR-V. Choosing a relatively recent used luxury car means you won’t miss out on advanced tech and comfort, and you’ll often gain some nice amenities unavailable in newer cars. Winner: used luxury.
Depreciation and Maintenance
Buying a new car means buying convenience. Most new cars are inexpensive to maintain for the first several years, often needing little more than oil changes and tyre rotations. Any needed repairs will be free if they are covered under warranty. In contrast, used luxury cars often require costly maintenance for components such as brakes and fluids. Parts and labour rates are also more expensive for luxury cars. Edmunds estimates that a BMW X3, for example, will cost approximately twice as much to maintain on average as a Honda CR-V. Buying a used luxury car does help you avoid the worst timeframe for depreciation. When you sell a new vehicle after three years of ownership, it’s common for it to be worth only 60 per cent to 80 per cent of its original value. The depreciation rate typically slows after the initial three years. Still, it’s likely that a used luxury car will cost you more every year to own and operate. Winner: new car.
Edmunds Says
Buying a new vehicle is the sensible choice. You get to enjoy the full length of the manufacturer’s warranty and know that nobody drove it before you did. But car buying is driven by emotion as much as logic. If the thrill of fine leather and a powerful engine is what you dream about, buying a used luxury vehicle is a perfectly viable option.
