With insane price tags but top-of-the-line features, some people face a conundrum: is it worth it to buy a luxury car, or are you better off putting that money somewhere else?
$18.7 million? $8 million? While it's true you can buy a lavish mansion with that much money, you can also buy some of the world's most expensive cars with that much cash.
Keep reading for a breakdown of whether or not you should buy a luxury car.
A Luxury, But Maybe a Necessary One
A car, even a luxury one, is a luxury for many people. You might be able to get it by using public transportation depending on where you live. A more affordable model, such as a Toyota Prius, is also an option.
Buying a luxury car, on the other hand, maybe the right decision for you if your lifestyle warrants it and your budget allow it. Luxury cars have lavish interiors, exquisite design, and the latest technology and safety features, despite their high price tag. This may make them worthwhile for some people.
Be Aware of Depreciation
The concept of depreciation is that the value of a product depreciates over time. Selling an iPhone that is two years old, for example, will not yield the same amount of money as selling a brand new one. Cars lose a lot of value over time.
Studies have shown that by the time you get home after driving a new car off the lot, it’s lost 10% of its value. As luxury cars are so expensive, this means that you can lose tens of thousands of dollars within minutes. Whether or not this matters, be aware of it.
Will You Be Paranoid?
When purchasing an expensive or luxury item, you want to ensure that nothing goes wrong with it. Because luxury cars can cost anywhere from hundreds of thousands to millions of dollars, driving one can make you feel uneasy.
Although you'll be less likely to damage your car if you take care of it and follow basic traffic rules, accidents can still happen. It's difficult to enjoy yourself when you're driving your $200k car at 80 mph down the highway.
Consider Buying Used
You may not have considered it before, but buying a used luxury car is a viable option. It won't give you the same sense of accomplishment as buying a new car, but it will benefit you in other ways.
You'll avoid a lot of the depreciation that happens right after you buy a car if you buy used. Used modern cars also last a long time, meaning that you won’t notice a difference in the lifespan. Ultimately, both new vs used cars bring different pros and cons.
Weigh the Pros and Cons Before You Buy a Luxury Car
Consider your situation before purchasing a luxury vehicle. Examine your budget and determine whether this is a luxury you can afford. If you can afford it or find one in good condition, you'll be in for unrivalled luxury and style.