Shopping for a new car is often stressful because of the enormous investment it entails. This is why so many consumers turn to the secondhand market, Here, you can pick up a car for half the asking price at a showroom but, if you’re not careful, you could end up paying more in the long run. There are advantages and disadvantages to buying used cars, but when it comes to luxury vehicles like a BMW 3 Series F30, they can be far greater, both for better or worse. This is why it is important to know exactly what they are so that you can make sure you land in the black rather than the red.
The Good
Naturally, it’s all the possible benefits of buying a used car that first excite shoppers. And first and foremost on the list is:
Price
Luxury cars are expensive, oftentimes painfully so. Therefore, any opportunity to cut this down is too good to pass up. Every vehicle depreciates over time, but premium cars lose the largest portion of their value over the shortest time, meaning that you can pick up a relatively modern used model for way less than a brand-new one. For example, a BMW will lose between 50-60% of its value over the first five years, while a Mercedes could lose as much as 70% of its value in the same period. In comparison, economy brands like Toyota only lose around 40% of their initial MSRP over five years.
Depreciation
Speaking of the dreaded D-word, there is a bright side. After the initial drop in value over the first few years, it plateaus quite nicely for the remaining life of the vehicle. This means that you can enjoy your secondhand car for several years and still sell it before it at less of a loss than the previous owner. The important thing is to weigh the current value of your vehicle against the remaining life. Of course, if you intend on holding onto the car for longer, there are steps you can take to prolong its lifespan, such as replacing parts. This can also have a positive impact on its value.
Insurance
The premium on your insurance is calculated based on the current value of your vehicle. Since a used vehicle is technically worth less, you can cover it for less. This contributes toward the total cost of ownership, which is subsequently lower. This only adds to the attractiveness of buying secondhand.
The Bad
As with all things in life, you have to take the good with the bad, and there are definitely some downsides to buying a pre-owned car. Apart from luxury being the most important factor, reliability and durability affected the quality of the vehicle.
Options
When you’re buying new, you get to decide exactly what you want, but a pre-owned vehicle has been tailored to someone else’s specifications. That’s not to say you can’t find a car in a configuration you like, but it can take time and considerable effort to do so. Sometimes, you’ll have to settle for something close, which can mean giving up on some desirable features.
Fuel economy
Luxury vehicles are not really known for their amazing mileage figures, but after a few years of ownership, they start to get even fewer miles per gallon. Good servicing can help to keep this down, but wear and tear is unavoidable. Since how much you spend on fuel contributes to the cost of ownership, it’s an important consideration.
Uncertainty
It’s essential that you get a full history of any vehicle you buy. Information is key, and you need to know that the car has been properly taken care of. This includes regular maintenance and any necessary repairs. If any recalls were issued, you need to ensure the war was sent back to the dealer, and if it wasn’t, you should ask if an accredited dealer would still do the work for free. If the current owner hasn’t properly collated this information for you, it can leave you uncertain about the condition of the car. It is also possible that you may be scammed if you don’t know what to be on the lookout for.
In conclusion
Buying a used car certainly has worthwhile benefits, but you do have to navigate a bit of a minefield to really see the best results. When it comes to luxury cars, in particular, one of the most important factors is finding the sweet spot between depreciation and the remaining life of a car. Of course, condition, mileage, and a variety of other things matter, too. Ultimately, it comes down to doing the research and making sure you have all the information you need. A car last-gen premium car can be an excellent investment if done right, and you can keep up with the Jones’s without breaking the bank.