Everybody loves new cars: the smell, paint shine, and smooth ride. Luxury cars offer even more when it comes to cruising in style. However, high-end features generally come with a high-end price tag.
If a car upgrade is the right financial choice for you, there’s no reason not to do it. But be careful—the high price can keep rising into the stratosphere if you don’t do some research. Here are some tips for saving money on your high-end car.
1. Consider What You Need
As with any purchase, buying a luxury vehicle starts with understanding why you need it. Luxury cars come in various sizes and have fancy tech features that seem impressive but might not be all that practical. Before buying, consider what role the car will serve in your life.
What safety features are important to you? Do you need more cargo space for your kids’ sporting equipment? Are you looking to go hybrid or all-electric? Knowing exactly what you’re looking for will help you avoid spending on unnecessary features.
2. Set a Budget
You won’t get far in any negotiation if you don’t show up with a concrete budget. A good budget will factor in all aspects of the car: the initial down payment, monthly payments, repair costs, gas, etc. If you have your heart set on a specific brand, research it to determine if it meets your budgetary needs.
Luxury cars can quickly go from semi-affordable to the price of a small house, so be sure you know what you can spend and how much wiggle room you have.
3. Buy Used
As with all cars, luxury cars are cheaper when bought used. They also depreciate more quickly than standard cars. While buying a high-end car that’s a few years old might feel less opulent, you’ll be grateful to have a few thousand to put toward something else—like maintaining your new car.
4. Buy Salvaged
This less popular option can save you a lot of money. A car that needs a lot of repairs will automatically be cheaper than a factory-new one. If you’re interested in fixing up a totaled car, this option’s for you. In the end, you’ll have a wonderful, functional car—and you can feel good knowing you salvaged something that would have otherwise been doomed to sit in a landfill.
5. Consider Leasing
If you like trying out a new car every few years, this one might suit you. Leasing a car is less commitment and cheaper than buying one outright, which can make it feel less daunting. Most models have leasing options, so you can decide which is right for you. Then, get a newer, fancier model once you’re able.
6. Avoid Customizations
Some people are drawn to the customizability of luxury cars, but buying aftermarket parts can lead to issues. If you’re buying used, avoid cars that have a bunch of stuff added to them. They might look cool, but will likely cost more in repairs later. You’re better off sticking to stock models, where you’ll still have plenty of options for color and style.
7. Beware of Air Suspension
Many luxury vehicles come with an air suspension system, which is supposed to give the vehicle a smoother feel when driving. However, drivers often cite issues with the air suspension needing repair, which is often costly. Try looking for a luxury car without air suspension, or do your research to find out which models have fewer complaints.
8. Scan It
Before buying a used luxury vehicle, get it inspected and run a diagnostic scan to catch anything wrong with the internal systems. Luxury cars, in particular, tend to have many computers and software that they rely on to function, and when they break down, it can lead to costly repairs. Diagnostics won’t cost you much upfront, and it’ll likely save you a great deal of money down the line.
9. Be on the Lookout for Rebates
If you don’t strongly prefer an exact make or model, financial incentives and rebates offered by dealerships are a great way to save money. This includes used and salvaged vehicles that a dealership might offer for a reduced price.
10. Negotiate
Above all else, always do your homework before stepping into a dealership. Salespeople will always try to upsell you. Psychologically, if the price tag of a car is already high, it might not seem like a big deal to add in a few extra features. However, before you know it, you might be pushed to spend thousands more than you’re comfortable with. Know your budget, what the car is worth, and when to walk away.
11. Get in the Driver’s Seat
Before purchasing any vehicle, hop in for a test drive. This step is especially crucial for luxury cars since high-end brands pride themselves on their smooth rides and excellent handling. Beyond the car’s look, this is what you’re paying for. Make sure it’s fun and comfortable to drive and that no glaring issues are visible from the driver’s seat.
12. Consider the Maintenance Costs
Due to the specificity of the parts involved, a higher-end car will typically cost more to maintain over its lifespan than a standard car. If you don’t have a specific brand or model in mind, research which luxury cars are the cheapest to maintain over five or ten years. The initial cost is key, but you don’t want to waste your money on common issues you didn’t know about. Tesla, Lexus, and Acura are all known for their relatively low maintenance costs.
13. Look for Cheaper Insurance
Car insurance is just one of the costs that automatically goes up when you add the word “luxury” in front of it. The best deal for insurance varies by model, so shop around to find one that’s right for you. Also, it’s crucial to consider this cost before purchasing the vehicle and factor it into your overall budget.
14. Check Gas Mileage
After insurance and repairs, fuel is one of the highest costs of owning any car. If you’re looking at a gas car, fuel economy is crucial. Luxury cars often take premium gas, so look for a car with impressive gas mileage. If you’re after an electric car, look into charging infrastructure and any energy rebates you might be eligible for.