Should You Invest in a Used Luxury Car?
The decision regarding whether or not you invest in a used luxury car depends on multiple factors, many of them directly related to you personally. To help make up your mind, consider the following points.
New cars tend to have a high depreciation rate over the first few years of ownership. Used cars, on the other hand, tend to hold their value. However, it’s important to consider the state of the car and how much maintenance it will need to keep it roadworthy. After you check out the car with a certified mechanic, you can more easily determine if the used luxury car will be a good buy or a money pit.
Before buying the car, you’ll need to inspect it thoroughly inside and out. Depending on your location, you might get a report showing the vehicle’s history, or a certificate showing its roadworthiness. In New Zealand, you may need to get a certificate of fitness to prove that the car meets the country’s road safety standards. Check the laws in your country to see what paperwork, if any, you will need.
3. Is the Grass Really Greener?
Before you buy a used luxury car, consider your current vehicle. Is it performing well? Does it have mechanical issues requiring you to get it repaired frequently? How is it on gas mileage? If your current car is serving you well, you might be better sticking with it until it starts becoming a problem. But if it’s in the garage every week for some problem or other, it’s probably time to say goodbye and invest in a new-to-you luxury vehicle to make your life easier.
Whether you decide to take the plunge or not, it’s important to ask yourself these questions whenever you’re considering trading in your current ride for a new/used model.
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