Luxury cars, also known as “Dream Cars” are not given that name for no reason. These cars are what only a few people are fortunate enough to own and most people would want to have for their Birthday. Many times, car rentals are great ways to experience the life of the luxury and comfort.
However, if you want to buy your own luxury car, especially this Christmas season, you have to know the different and practical ways to choose your cars wisely. CBS Money Watch asks the question, “Can you afford a luxury car?”
“If you’ve been casting envious eyes on those Mercedes and BMWs in the office parking lot, you may be wondering if you could fit a luxury car into your budget. Luxury brands have been reading your mind and indeed have brought out more affordable models. But make sure you calculate all the costs that come with owning a luxury car — not just the purchase price.
You wouldn’t be the only one considering so-called entry-level luxury cars — those with purchase prices often starting under $35,000. Growth in this segment has been a major reason that luxury vehicles have increased their market share in recent years, according to an April report from analysts at the National Auto Dealers Association Used Car Guide. “The data suggests that the growth was due almost exclusively to new buyers entering the market,” not habitual luxury buyers trading down to less expensive models.”
Autobytel lists the Top 10 Least Expensive Luxury Cars, which includes the following on the list:
“1. 2015 Chrysler 200
2. 2015 Buick Verano
3. 2015 Acura ILX
4. 2014 Acura ILX Hybrid
5. 2015 Buick Regal
6. 2015 Audi A3
7. 2014 Mercedes-Benz CLA-Class
8. 2014 Acura TSX
9. 2015 Acura TLX
10. 2014 Hyundai Azera”
Like all buyers, you’re thinking of long-term investment when it comes to your newly purchased vehicle, especially when you don’t intend to buy another one in the next few years. Maintenance is another thing to consider when choosing your vehicle. USA Today wrote in an article entitled “KBB: Vehicles that will cost you least to own for 5 years”:
“The Mazda and Lexus brands overall were named the cheapest brands of vehicles to own in the annual “2014 5-year Cost to Own” awards by car shopping data service Kelley Blue Book and KBB.com.
They were the mainstream and luxury brand winners for the second consecutive year, based on their overall lineups having lowest costs to own. KBB also named, regardless of brand, the individual models by vehicle category this year with the lowest projected tab for the first five years of ownership.
The awards look beyond sticker price to include estimated depreciation, maintenance and repair, fuel costs, finance and insurance fees and state fees. Depreciation and gassing up are the big-ticket items in that equation but the others can add up over five years. KBB says it compiles the annual list to help shoppers make a budget-wise purchase decision informed by more than just the deal to drive off the dealer lot.”