Luxury Car – To Buy or Not To Buy?

If it’s a toss-up between using your hard-earned savings on a luxury car or a brand new home, here are a few points to consider before taking the plunge. First of all, you need to keep the appreciation and depreciation factors in mind. The value of real estate will always appreciate, surely and steadily as the years go by. Although the appreciation is dependent on the location of the property and the economic situation in the area, it is highly unlikely that the value will decrease.

On the other hand, a luxury car will only depreciate in value over time. In fact, a expensive top end car is only highly valued when it is the latest vehicle to be released by the manufacturer but the price drastically drops around thirty percent after the first two to three years. If you have a high mileage count on your luxury car, then this will also contribute to the price drop of the vehicle. Unless you have a rare and vintage vehicle, the market assessment for the high end car will only plummet as it ages.

While a top class cars may seem to be the better deal, you also need to factor in the exorbitant costs of repair and maintenance. You need to bring an expensive car for regular tune-ups to authorized service centers and use only original parts for replacements. Manufacturers will also advise you to use premium fuel when you gas up your car, which can also contribute in eating up your budget. In the case of a new home, the regular upkeep and repair that is required is often minimal, as long as it was well-built in the first place.

One option is to purchase a used top quality car, which may sometimes go as low as fifty percent off the original price. In this way, you can make the down payment on a brand new home, but still have some left over to buy the car of your dreams.

Since a luxurious car lease will typically expire during the spring or fall seasons, you need to approach car dealers and leasers to ask about the car that you have been considering for yourself. Some manufacturers have their own certified pre-owned programs which go through a rigorous testing before they are resold so as to maintain standards of quality and excellence expected from a top class car.

For posterity’s sake, having a home will be much more welcome than a slightly used expensive luxurious car. If you decide to go with a house and lot, your children can remodel the home to their own liking if you pass it on to them but there is little that can be done with a luxury car after the value has depreciated.