With insane price tags but top-of-the-line features, some people face a conundrum: is it worth it to buy a luxury car, or are you better off putting that money somewhere else?
$18.7 million? $8 million? Sure, that sort of money might be able to get you a sprawling and swanky mansion, but it’s also the price of some different luxury car models.
Keep reading for a breakdown of whether or not you should buy a luxury car.
A Luxury, But Maybe a Necessary One
For many people, a car, and not even a luxury one, is a luxury. Depending on where you live, you may be able to get by taking public transportation. You can also opt into getting a more affordable model, such as a Toyota Prius.
However, if your lifestyle warrants it and your budget allows it, buying a luxury car may be the right decision for you. Although the price point is high, luxury cars come with lavish interiors, exquisite design, and the latest tech and safety features. For some people, this may make them worth it.
Be Aware of Depreciation
The idea of depreciation is that you use up the value of a product over time. For example, selling an iPhone that’s two years old won’t give you the same amount of money as selling a brand new one. Cars experience a lot of depreciation.
Studies have shown that by the time you get home after driving a new car off the lot, it’s lost 10% of its value. As luxury cars are so expensive, this means that you can lose tens of thousands of dollars within minutes. Whether or not this matters, be aware of it.
Will You Be Paranoid?
Whenever you buy an expensive or luxury product you want to make sure that nothing happens to it. As luxury cars cost anywhere from hundreds of thousands to millions of dollars, it might cause some paranoia each time you drive it.
Although you’ll indeed be less likely to damage your clunker if you take good care of it and obey basic traffic rules, an accident can happen regardless. If you’re going 80 mph down the highway in your $200k car, it might be hard to enjoy yourself.
Consider Buying Used
It may not have crossed your mind before, but don’t rule out buying a used luxury car. It might not grant you the prestige that buying a new car gives you, but it’ll benefit you in other ways instead.
By buying used, you’ll avoid much of the depreciation that occurs early on after buying a car. Used modern cars also last a long time, meaning that you won’t notice a difference with the lifespan. Ultimately, both new vs used cars bring different pros and cons.
Weigh the Pros and Cons Before You Buy a Luxury Car
Before you buy a luxury car, make sure to consider your situation. Check your budget, and ask yourself if it’s a luxury that you can afford. If you can afford it, or can find a good used one, then great ready for unrivaled luxury and style.
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