Why are used Mercedes/BMW/highend same price as Honda/Toyota? (luxury, vehicles)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
- high end cars out of warranty carry high maintenance expenses
- high end cars have high insurance costs because collision repairs are expensive
- some of the buyers of high end brands don't like to drive old ones (past the 3 year lease for example)
If you can do your own maintenance, owning a used high end car can be a very attractive choice.
AMEN.
Note that Lexus and Acura models are SIGNIFICANTLY higher than their European counterparts on resale.
Note that Lexus and Acura models are SIGNIFICANTLY higher than their European counterparts on resale.
I can pick up mid '90s lexus LS400s for less than the BMW 7 series of the same year in the same condition, so no, they aren't holding any better. Luxury cars simply don't.
The more expensive the car, the more it depreciates..
Also most of those German cars are leased, people lease them b/c they are scared to own them b/c they are not enthusiasts and don't want to pay for repairs past the warranty. As the Germans chased volume with leases, now there are tons of used ones to buy, lowering prices.
Agree with Watson and some others... I just think people lease them and don't want to own them. People drive them more for status than the actual love of the vehicle. Too many used ones so it's a supply and demand issue. I would never buy a used BMW or Mercedes unless it was one heck of a deal....they aren't the greatest thing ever built like some people think anyway. If I really wanted one I would definitely look into leasing first.
I can pick up mid '90s lexus LS400s for less than the BMW 7 series of the same year in the same condition, so no, they aren't holding any better. Luxury cars simply don't.
Six months ago, I received $20,000 for a 2008 Lexus RX350 with 110k at a Manheim auction. I have never done as well on high-end European models.
I would never buy a used BMW or Mercedes unless it was one heck of a deal....they aren't the greatest thing ever built like some people think anyway.
I live with a used BMW. Thre are real engineering reasons they are great driver's cars and worth the money, as well as a certain solidity that you don't get on lower end cars. I like the RWD, 50/50 chassis balance, responsive steering, and the way the car feels smaller around you and more agile as you go faster. All that and out of a full size luxury car, I can pull nearly 30 mpg highway.
My guess is that it's because for luxury/brand-name premium cars the main motivation to purchase comes from that feel-good factor in owning a nice, expensive new car that you're happy to show off to other people.
Whereas with regular cars the main motivation is safety, reliability, and maintenance costs.
A regular car that is a couple years old is actually a better deal as the depreciation hits but it's probably still reliable and has low maintenance costs.
But a luxury car that is a couple years old is almost completely useless if you try to sell it the way you would a current model because it's not as reliable or as low-maintenance as the regular brands but now it's not something people want to show off either.
Now there may be a small sector of people who can't afford or smartly won't pay full price for a brand-name car but it's minuscule compared to the two main camps.
So yeah, all in all, a regular car improves in its main strong-points after a few years whereas a brand-name car gets worse across the board.
You might compare it to the common--albeit not very PC--analogy that females lose their main strong-points (looks, youth, etc) with age whereas males gain them (maturity, financial security, social standing).
I can pick up mid '90s lexus LS400s for less than the BMW 7 series of the same year in the same condition, so no, they aren't holding any better. Luxury cars simply don't.
In my area at least, LS400s cost higher than BMW 7-series or Mercedes S-class of the same year unless they are V12-equipped versions. A Lexus ES from mid-90s still hold their value more than $4000.
Agree with Watson and some others... I just think people lease them and don't want to own them. People drive them more for status than the actual love of the vehicle. Too many used ones so it's a supply and demand issue. I would never buy a used BMW or Mercedes unless it was one heck of a deal....they aren't the greatest thing ever built like some people think anyway. If I really wanted one I would definitely look into leasing first.
Quote:
Originally Posted by Merc63
I live with a used BMW. Thre are real engineering reasons they are great driver's cars and worth the money, as well as a certain solidity that you don't get on lower end cars. I like the RWD, 50/50 chassis balance, responsive steering, and the way the car feels smaller around you and more agile as you go faster. All that and out of a full size luxury car, I can pull nearly 30 mpg highway.
Sure that's a nice car I still wouldn't buy it used though. It's more of an investment/money management issue. If I had to blow 3k in repairs/maintenance I would cry because that money could be spent way better elsewhere. Like on a 10 day trip actually "in" Europe or something. America, Japan, and Korea all make nice, reliable cars now. It was different back in the 80's and maybe 90's.
Sure that's a nice car I still wouldn't buy it used though. It's more of an investment/money management issue. If I had to blow 3k in repairs/maintenance I would cry because that money could be spent way better elsewhere. Like on a 10 day trip actually "in" Europe or something. America, Japan, and Korea all make nice, reliable cars now. It was different back in the 80's and maybe 90's.
Cars are my hobby, Investment/money management is in making me happy, not buying a soulless applaince to get me to work. I'd rather buy a cheaper, older luxury/performance car than a new economy car that costs more to buy, more to insure and has less of what I like in a car. But then again, I'm a DIY'er, so the costs to maintain or repair an older luxury car are miniscule in the extreme. hell, due to an accident whwhere my wife killed the engine in that BMW, I needed to replace the engine. I found one in Utah for $450 with low miles and am replacing it myself for MAYBE a few hundred dollars in new parts. Compare that with a shop cost of a few thousand dollars and you can see why DIY is so much better for investment/money management (and that goes for any car, really).
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'd rather buy a cheaper, older luxury/performance car than a new economy car that costs more to buy, more to insure and has less of what I like in a car. But then again, I'm a DIY'er, so the costs to maintain or repair an older luxury car are miniscule in the extreme. hell, due to an accident whwhere my wife killed the engine in that BMW, I needed to replace the engine. I found one in Utah for $450 with low miles and am replacing it myself for MAYBE a few hundred dollars in new parts. Compare that with a shop cost of a few thousand dollars and you can see why DIY is so much better for investment/money management (and that goes for any car, really).
