If you’ve been here before you know the mantra. Depreciation is your friend! If this is your first time and the headline caught your attention you won’t be disappointed.
Unless you are really rich there is no economically smart reason to buy a car new as they depreciate once you drive them off the lot and that’s a fact. Luxury items are emotional purchases so it’s understandable if emotion takes over when you walk into that showroom and get sucked into plunking down on that new luxury ride. Maybe it’s your dream car or maybe it’s just something you can afford and its only money right? You can’t take it with you and you can afford it so why not? I get that but you can still have it all with a slightly used, oops I mean pre-owned luxury vehicle.
Here’s the main criterion to make the list. The pre-owned vehicle has to be the same body style as the current model. So this is not about buying a 10-year-old Porsche, Ferrari or any other high-end luxury vehicle claiming, “look how much I saved”.
Mercedes S Class Sedan - Mercedes has long been a brand that is synonymous with luxury and when it comes to their cars the S-Class sedan has set the standard for full-sized luxury. This sedan features top-notch materials, elegant styling and unquestionable luxury elements like leather, navigation, satellite radio, heated and ventilated seats, smartphone integration, adaptive cruise control and many other options. The current S-Class sedan debuted as a 2014 model and continues to impress with its presence and overall array of model choices ranging from the entry level S450 to their super potent AMG models the S63 and S65. Regardless of your choice you are getting what is arguably the measuring stick for full sized luxury sedans. You’d be sitting at the top of the luxury car mountain.
The entry level S450 has an MSRP that starts at $89,900 and climbs to $102,900 for the S560 4MATIC model that then hits another level with the “bonkers” AMG S65 that has an MSRP of $220,500. The AMG S63 and S65 can only be defined as super sedans with performance rivaling top sports cars. A national online search produced over 1,800 cars! There are a few takeaways that should be noted from these search results. First off there are a lot of these cars to be had, which should translate into sweet deals if you are smart and patient. It also speaks to the practical nature of these cars as they are bought to be driven daily versus being garage queens driven only on weekends like many sports cars. The 4MATIC option of these cars give you all wheel drive and are great for regions that have to deal with snow covered streets in the Winter months.
There are thousands to choose from but the base model for 2014 was the S550 rear wheel drive model. There were several with excessive mileage with asking prices starting in the high $30K range but you should ignore those as it’s not worth the risk buying one of these with over 100K miles on it. Mercedes pre-owned program typically will go back to cars not more than three to four model years and less than 100K miles on the odometer and there are many of those to choose from. It’s not uncommon to be able to find a 2015 base model with asking prices in the low $40K range and 40K-50K miles on the odometer. Since a nicely equipped S550 sold for anywhere from $95,000 to $100,000 being able to get one for about $45K delivers on the notion you can save $50K buying this car pre-owned. Depreciation is your friend and might also get you a luxury vacation with money left over to invest. Now that’s something smart and worth thinking about.
Porsche 911 Turbo S – A Porsche needs no introduction and especially their most iconic model the 911. The 911 Turbo has been the gold standard for German performance cars but recently other models like the GT3 or GT3 RS have become the performance guy’s weapon of choice. Some auto journalists and enthusiasts have gone as far as saying the 911 Turbo has gotten soft and bloated. Everyone is entitled to their opinion but make no mistake about it that a 911 Turbo S is still one of the best performance cars on the planet but here’s the rub. Historically they take a serious depreciation hit within their first 24 months and that advantage goes to you the next owner. By the time they are coming off a 36-month lease they become a great value to consider. Depreciation is your friend baby! This car has an MSRP new of $190,700 and it might be hard for some to believe that a damn near $200,000 car is not loaded but there are still options you can add to this car that push it well over the $200,000 mark! My national online search turned up 142 “used” Turbo S models ranging from the 2014 to 2018 model years. Asking prices started at $127,000 for a 2014 coupe and rose to $199,000 that included both coupes and convertibles. Potential savings can start as high as $75,000. It should also be noted that Porsche has a certified pre-owned program called Porsche Approved that works like many other used car warranties in the market. It is designed to give you piece of mind with a warranty that allows some sort of insurance for repairs and maintenance.
Cadillac Escalade - The Escalade is America’s unquestioned leader (sorry Lincoln Navigator) for the ultimate full size luxury SUV. The current model was launched as a 2015 and boasted a completely redesigned body style that is an evolution of the one it replaces. In its relatively brief history this vehicle has become an icon associated with urban style, pop culture and “bling”. This SUV has an MSRP new of $74,695 for their base model and $93,795 for the Platinum edition. It is not uncommon to see Escalades leaving showrooms nicely equipped somewhere between $80,000 - $90,000 and no shocker if they exceed $100,000. There are four different versions of this truck ranging from the base model to the Platinum Edition so you could argue the actual savings depending on which model you choose. The bottom line is that if you can spend about $45,000 you can get an Escalade that could represent savings from $30,000 to $50,000 dollars. I will say that these cars unlike several on this list are unquestionable daily drivers and because of that there are many with high miles but that’s not necessarily a bad thing because Cadillac also has a certified pre-owned program that gives you 6 years and 100,000 miles, whichever comes first.
