Buying a used premium car may seem like an excellent idea for the low price, but there are many important factors to consider and at Proautoenthusiast.com we can help you.
Buying a car always represents a significant expense and a massive impact on our economy. Some recommend opting for a premium used car over a new one from a volume brand, but there are a few factors to consider before you do this.
At Proautoenthusiast.com we care about your economy and therefore we present the advantages and disadvantages of purchasing a used premium car. In this way we will help you make the best decision and better protect the money you are about to spend.
1. Advantages of purchasing a used premium car
Starting with the advantages, we can tell you that buying a used premium car can bring you great satisfaction thanks to having a car with good quality materials and excellent finishes at the same price you would pay for a new car from a general brand.
1.1 Better performance
Putting it in perspective, a premium used car is usually very low in cost, comparable to some newer models from volume brands. However, premiums are usually cars with more power, turbochargers or superchargers, and this translates into better performance on the track and on the road, and with it much more driving emotion.
Also, premium cars tend to have better driving assistance systems, with which making highly dynamic maneuvers is usually quite simple, especially in copies with all-wheel drive or advanced stability controls.
1.2 Best design
A premium car is also more expensive due to the investment the brand made in its development and design. This cost was borne by the first owner of the car and is part of the depreciation of the car over the years, but it is still a pretty cool looking car.
In the general segment you will hardly find cars with a design as polished as that of the used premium car that you are about to acquire, and this is undoubtedly one of the advantages of buying this type of car.
1.3 Status
Yes, let’s face it: many of those who aspire to buy a premium brand car do so with the expectation of obtaining a better social status through the car and its emblem, after all it is understood that not everyone can afford a car of these brands .
2. Disadvantages of buying a used premium car
However, buying a used premium car may not be the best idea, especially for your pocket. Consider each of the following points before taking the big step and buying your second-hand luxury car.
2.1 Considerable depreciation
If you are about to buy a used premium car, you may have noticed that its value has decreased considerably over the years to the point where it becomes a very tentative purchase due to its low price. However, this more than being a hook should be a warning sign.
Buying a car that has lost more than 50% of its value within three years is synonymous with buying a car that will further reduce its price in the next two years. The level of depreciation is due to the fact that these cars tend to have higher fuel consumption, less availability of spare parts, and more expensive repairs.
2.2 Most expensive repairs
Consider that just like any other used car , a second-hand premium car can have several short- and medium-term failures. In the best case, these will be covered by the manufacturer’s warranty, but it is also likely that you will be the one who must absorb those expenses.
Being cars with less availability of spare parts, many of the parts must be imported directly from the country of origin of the car, making you have to pay a considerable sum for the auto parts you need.
2.3 More expensive maintenance services
As in the previous point, consider that the maintenance of a premium car is usually much more expensive than that of a general brand car, especially if you plan to maintain it at the brand’s official service centers: an important point if the car still has warranty and you want to keep it.
Think about this before you buy a used premium car, since the purchase price will not be the only thing you have to pay for the car, and you will surely end up paying around 750 or 1000 dollars extra per year if you want to keep it in perfect condition.
2.4 Premium cars with more than 5 years
A premium car with more than 5 years of use may seem like a bargain, but it is exactly the point at which it becomes inadvisable to acquire them since they will begin to present more and more faults and in the case of hybrids or plug-in hybrids, the batteries could be on the verge of the end of its useful life, and the replacement of this component has prices close to half of the value of the car: something that you probably do not want to pay.
Bonus Tips
Luxury cars (also called premium for some time now, although the word is already used so much that it has lost its meaning), are still on the minds of many people. They are “aspirational” vehicles that people wish they had one day. And beware, it is true that for many of us a new luxury car is unattainable (or financially reckless) but… could a second-hand luxury car be a good option?
Let’s think of a scenario. You are thinking of buying the new Seat Ateca (see test ) for which you have a budget of 27,000 euros. Obviously, you can even opt for the highest level of equipment Xcellence, with superb upholstery, browser, climate control, rear view camera, various driving assistants, full LED headlights…
And yes, for the same amount of money, are you looking for a second-hand BMW X1 with up to 20,000 km on its odometer (not to leave the compact SUV segment )? Or, why not even take a look at a used Audi Q5 , which for the same price offers a little more space and you find quite a few options with a few more kilometers?
These are just a few examples (we have not included motorization in our equation, which, as we know thanks to our car appraiser , has a decisive influence on the price that will be asked for the car). The total price of these vehicles will also depend on other factors, such as the general condition of the vehicle or whether it is sold by an individual or a dealer. But, anyway, we can establish a series of advantages and disadvantages when choosing between a used luxury car or a new generalist.
New general car. Pros
- Perfect condition: The car barely marks a few testimonial kilometers on the odometer and you are the first owner.As we said in our tips for choosing between a new or used car, in the second, the mileage and condition of a used car will vary.
- Greater guarantee: Thenew car warrantyis much older.In addition to the two years that manufacturers are required to, some brands extend it for free and it is not uncommon to see five-year warranties… or even seven (or 150,000 km) as in the case of Kia.
- best selection: It’s much easier to configure it with exactly what you want.You may find a second-hand car equipped as you wish, but it may be far away, or in a color you don’t like… and you have to keep looking.You order the new car… and that’s it.
- Greater incentives: In new vehicles it is common for there to be discounts that greatly lower their recommended price.If, in addition, you decide to finance with the brand, you can have even more discount (but remember that you must read thesmall letter).
- less maintenance: In a new car you hardly have tochange oiland tires.Not only that, there are brands that include free maintenance offers for the first years.And if something fails, remember the second point: the car is under warranty.
- latest technology: Law of life.The more I move the car, the more modern features it will have.Both security (airbags, driving assistants, crumple zones…) and above all infotainment (integration with smartphones, audio streaming)…
New general car. Cons
- higher depreciation: A new car will lose most of its value in its first few years of life.There arebrands that depreciate more, but in general, as soon as a car is registered, it is already worth 18% less.From then on, it continues at a rate close to 10% per year during its first six years of life.
- you will not impress: This is very subjective, but you will drive a vehicle that will take you from one place to another without problem… but feeling it a lot, you will not attract attention among friends and family as with a luxury car.Being disappointed or not by this is already within the character of each person.
Used luxury car. Pros
- Esthetic: It’s undeniable.Heads turn as a luxury car drives by.And the interior usually uses better materials than the generalists (hence also its
- lower depreciation: The first owner of the car has already suffered the great blow of the loss of value of the car.Starting in the sixth year, the price curve becomes smoother and costs 5% less each year.And be careful, when the car is nine years old it has already lost (these are figures in general, there are variations) around 84% of its price and it doesn’t drop much anymore.In addition, as a general rule, used luxury cars retain their value much longer than general ones, so the investment will be less risky.
- Security: When you look at which cars had standard stability and traction control, front or side airbags… you see that a little more than five years ago you had to look in cars of more than 30,000 euros.And they are the ones who usually got the best grades in EuroNCAP.maybesupercarsYconvertiblesdon’t be so good at this point… but at the first one.
- cutting edge technology: Historically, luxury cars have offered the latest and greatest safety features, as well as entertainment technology, before they made it to higher volume models.It is common to find in cars over five years old button start, windshield wipers and automatic lights…
- less risk: When a new vehicle hits the market, it has not been put through real road tests.Often, it is not until many people use the car on a daily basis that the assembly line reacts to solve small problems or failures, since a lot of information is available.In addition, you can more easily find information in specialized forums of problems that people encounter and further refine your purchase.
Used luxury car. Cons
- little guarantee: As you well know, theused car warrantyIt changes depending on whether you buy the luxury vehicle from a private seller (six months with no charges or hidden defects), or from a dealer (minimum one year, but sometimes they offer something more, depending on the model, that could have been purchased with a warranty extended).
- less efficiency: Since luxury vehicles tend to come with larger and more powerful engines, they are often less fuel efficient than generalists.Additionally, many luxury car engines require premium fuel, which would also add to the cost of ownership.
- the false luxury: Just because you own a vehicle from a premium brand doesn’t mean that all of their vehicles come loaded with all the options.And it is that a large part of their businesses are in the sale of extras… that not everyone equips when they buy the car for the first time.
- Financing: you can neverfinance the carin financial conditions as beneficial as a new vehicle.That’s how it is.At this point, pay attention above all to thereservation of title.
- Old technology: Although we assume that the luxury car includes a browser or an information and entertainment screen in its equipment, it is likely that they will not age well… or at least not as well as the mechanical part.The maps will be out of date and the infotainment system may not play well with your smartphone.If the latest technology is important to you, go for a new car, even if it’s a generalist.
- Maintenance: Studies indicate that, from the fourth year, the set-up shoots up due to the greater ailments derived from the use and enjoyment.The preventive maintenance of a six-year-old vehicle costs twice as much as that of a four-year-old, according to various studies.There are doubts as to whether the maintenance of a premium car costs more than a general one (take a look atthis OCU report, you’ll be surprised).
But there is no doubt that if a car had pioneering technologies, these are susceptible to failure and repair costs are high.Those who are rich enough to buy a luxury car will complain like everyone else if it breaks down, but they have the necessary funds to take it to the official service and pay for it (here the most handy and with mechanical knowledge have an extra