When thinking of luxury cars, we think of a smooth and ultra-comfortable driving — or riding — experience. High-end cars can certainly provide a superior ride, but you can also expect to pay for the extras. Here’s what you need to know to buy a luxury car without paying through the nose.
How to Buy a Luxury Car
Naturally, you will pay more for a Jaguar than a Ford Focus in good condition and produced in the same year. That doesn’t mean you should blindly pay a fortune, though. Lay the proper groundwork and you can find a good deal on a luxury car.
Step 1: Explore your options. You may already have your heart set on a particular luxury vehicle, but it doesn’t hurt to look around.
Browse makes of luxury cars at dealerships, or look through manufacturer websites to narrow down which types of luxury cars most appeal to you.
Bear in mind that many luxury vehicle manufacturers have “entry-level” models that are a tad more affordable than the standard luxury models.
Step 2: Look up the dealer invoice price of any vehicle you seriously consider. There is often a huge difference between dealer cost and retail price for a luxury car. Of course, the dealer is in the business of making profits, but there is room for negotiation.
Visit a website like Kelley Blue Book or Edmunds to discover the markup. This way, you’ll be better prepared to make a deal.
Step 3: Be aware that you don’t have to buy new. You can still get a high-quality luxury vehicle without paying retail. Consider buying a previously leased or otherwise used car.
It doesn’t take long for a new luxury car to significantly depreciate in value, and there is a lot of life left in a luxury car that’s just a year or two old. Just be sure to have a qualified mechanic inspect a potential purchase before you commit.
Step 4: Reexamine your budget. While you may be able to purchase a luxury car outright or make monthly payments, there are other expenses to consider. The taxes and insurance on a luxury vehicle will be proportionately higher with the purchase price.
Also, parts and maintenance on such vehicles can be pricey. Objectively look at what you can afford beyond what it takes to purchase a car; you want to ensure you can not only buy it, but also keep it.
Step 5: Make your choice and take the plunge. Once you’ve addressed all your concerns and picked out the right luxury car for your needs, all that’s left is to dive in and buy it. Make sure you fully understand any obligations before you sign, and enjoy your new ride.
Although you need insurance for any car you drive, it is especially important to protect your luxury car investment. After all, you don’t want to pay an exorbitant price to repair or replace your luxury vehicle in case there’s an accident. Shop around to get the best insurance premium for your high-dollar, high-quality vehicle.