Are luxury cars worth the money?

"My husband really wants to buy a Jaguar, but I don’t think it’s worth it, especially when you factor in depreciation. Are luxury vehicles worth the splurge?


Apr 13, 2021
Answer provided by
Eric Schad
Answered at Apr 13, 2021
“A Jaguar is a splurge that’s worth the price tag for some people. It can help boost your social status or provide you with a more comfortable ride from Point A to Point B. But like with any big-money purchase, it has its drawbacks.
Luxury cars notoriously depreciate faster than more budget models. Typically, a luxury car will lose about 15% of its value when you drive it off the lot, and as much as 50% of its value in three to five years. Why? Simply because the market for used luxury cars is far less robust than for other models. Who wants a used luxury car when they can buy a new one?
If you have the budget, a Jaguar might fit your wants and desires. But it’s not a financially savvy move. As an alternative, you might want to check out a certified pre-owned luxury car or a lease to offset the loss from depreciation. “
Car Buying

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