Used Luxury Cars Are a Good Choice as New Cars Get More Expensive

New cars are costing more money. Many people are now looking at used luxury cars that can be bought for under $20,000. These cars can still offer nice features and a good driving feel.
By Newsroom | Cars, Finance |

Finding Affordable Luxury

New cars are becoming more expensive. For those seeking a luxury driving experience without a premium price tag, the used car market presents opportunities. Shoppers are increasingly looking to pre-owned vehicles that offer advanced technology, safety features, and a stylish appearance at a cost under $20,000. This trend is particularly relevant as the overall cost of new vehicles rises, with some analysts indicating that new cars priced below $20,000 are no longer available in the U.S. market.

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Market Dynamics and Shifting Affordability

The landscape of car affordability has shifted. Recent reports suggest that the U.S. market has seen the discontinuation of models like the Nissan Versa and Mitsubishi Mirage, which previously held the position of the most affordable new vehicles. Analysts point to this as evidence that new cars with an average MSRP below $20,000 are becoming scarce. This decline in entry-level new car pricing has made the used car market a more attractive option for budget-conscious consumers.

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  • New Car Price Increases: Average transaction prices for new vehicles have risen, pushing many models out of the sub-$20,000 category.

  • Model Discontinuation: The removal of certain budget-friendly models from production has further limited new car options at lower price points.

  • Used Car Appeal: The pre-owned market is consequently gaining prominence for consumers seeking value.

Key Vehicles and Considerations

Several used luxury models are highlighted for their ability to provide a premium experience within a $20,000 budget. The Acura TLX, particularly the first generation, is mentioned for its competitive pricing, performance features like Super Handling All-Wheel Drive (SH-AWD), and interior tech and safety upgrades. The Cadillac SUV, Maserati Ghibli, and Lincoln MKZ are also noted for their blend of style, performance, and perceived luxury.

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However, the prospect of owning a luxury vehicle on a budget also comes with inherent considerations regarding maintenance and reliability. While some sources point to positive ownership experiences with certain models, there are also cautionary notes about potentially expensive repairs associated with some luxury brands.

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  • Acura TLX (First-Gen): Praised for value, performance (especially with SH-AWD), and modern features.

  • Cadillac SUV: Cited for its prestigious badge, upscale appearance, and comfortable ride.

  • Maserati Ghibli: Recognized for its Italian styling, luxurious interior, and engaging driving dynamics.

  • Lincoln MKZ: Mentioned for positive ownership experiences.

  • Reliability Concerns: Warnings exist regarding potential high maintenance costs and repair expenses for certain luxury vehicles.

Evaluating Value and Performance

When assessing used luxury cars under $20,000, factors such as features, style, and performance are paramount. The BMW 335i (E90/E92) is noted as a budget-friendly option with a powerful engine. Conversely, some reports suggest that while brands like Mercedes-Benz and BMW offer appealing used options, they might also present less reliable choices. A common sentiment in Europe, "There’s nothing more expensive than a cheap Mercedes," underscores the potential for costly maintenance on previously high-end vehicles.

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  • Performance Focus: Models like the BMW 335i are recognized for their power and tuner potential.

  • Brand Reputation: The perceived value and potential upkeep costs vary significantly by brand.

  • In-Depth Analysis: Rankings and reviews often consider a wide range of data points, including acceleration, handling, comfort, fuel efficiency, and overall driving enjoyment.

Industry experts and automotive publications offer guidance on navigating the used luxury car market. Rankings from sources like Car and Driver evaluate vehicles based on manufacturer's suggested retail price (MSRP), acceleration, handling, comfort, cargo space, fuel efficiency, value, and driving enjoyment. U.S. News & World Report's rankings are based on a U.S. News overall score, considering value, safety, and reliability.

The ongoing shift in the automotive market suggests that for consumers seeking a luxury feel at an accessible price point, exploring the used car sector remains a pragmatic approach.

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  • Ranking Methodologies: Different publications employ diverse methods to assess vehicle value and quality.

  • Consumer Priorities: Buyers often balance desire for luxury with practical considerations like affordability and maintenance.

  • Market Evolution: The decline of new, affordable car options reinforces the significance of the pre-owned market for budget-conscious shoppers.

Sources

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Frequently Asked Questions

Q: Why are used luxury cars a good option now?
New cars are getting very expensive, and some cost over $20,000. Used luxury cars can offer good features for less money.
Q: What are some good used luxury cars to look for?
Cars like the Acura TLX, Cadillac SUVs, and Lincoln MKZ are often mentioned as good choices.
Q: Are there any problems with buying a used luxury car?
Yes, some luxury cars can cost more to fix. It is important to check the car's history and condition carefully.