Buying a luxury car is an expensive proposition, but shoppers can potentially save tens of thousands of dollars by opting for a used model instead of one fresh off the assembly line, according to Edmunds.
Roughly three million used cars were sold in November 2018 alone, even as the average price of used vehicles surpassed $20,000 for the first time since 2005, Edmunds reported. Buying used is still more cost-effective than buying new vehicles, the prices of which have also reached record highs.
Since the value of luxury model vehicles can depreciate by between 25 and 30 percent after just one year, shoppers can potentially save tens of thousands of dollars by buying a slightly older model. What’s more, Edmunds says used luxury models generally retain their value after initial depreciation takes place, though higher insurance and maintenance costs can eat into savings.
Average price of 2018 model: $57,742
Average price of 2015 used model: $26,305
Savings: 54 percent