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Luxury cars are the ultimate symbol of success. We’ve all dreamt of speeding down the highway in a Ferrari or cruising through the city in a swanky Mercedes. Many of us assume such vehicles are way out of budget, but what if you could afford one of these vehicles? With so many different ways to acquire a luxury car, you may find that there are affordable solutions out there. Below are four cost-cutting methods to consider.
Buy a used model
Luxury cars often enter the market at an insane price, but many of them also rapidly depreciate in value. Wait a few years, and some luxury cars will be selling second-hand for half the price. You can find many used luxury cars in fairly good condition being sold through online listing sites. Private sellers can offer some of the best prices, however there are also some niche dealerships out there that can offer bargains. As with any car, always inspect the vehicle in person before you buy and give it a test drive. Make sure private sellers always meet you at their address and have necessary documentation.
Look into leasing
Leasing is essentially renting a car instead of owning it. This can often come with cheaper monthly costs than buying a luxury car on finance, plus newer models may be protected by a warranty (covering certain repairs) and there could be tax benefits for business owners. Car leases typically last 2 to 3 years, after which you will need to return the vehicle. Be wary that you must keep the vehicle in good condition and may have to stay within mileage restrictions (if you go beyond these restrictions, expect to pay penalties). It’s often the most accessible way to drive a new car or a luxury car, but may not be suited for those who want a car they can keep for years or customize.
Use PCP finance
Personal contract purchase (PCP) is an alternative finance scheme which comes with much lower monthly payments than traditional finance. This makes it a very attractive option for those wanting to buy a luxury car on finance. The catch? At the end of the agreed term, you must pay a large balloon payment if you want to continue owning the vehicle, otherwise you must return it. It’s similar to leasing in some ways, except with the option to buy the vehicle at the end by paying the remaining value.
Consider a restoration project
How are your mechanic skills? Another solution for those who have the time and patience is to buy a used luxury car in poor condition with the intention of restoring it. Some luxury classic cars can be bought very cheaply simply because they have a lot of parts that need replacing or fixing. You could save money upfront by buying one of these cars, but you’ll need to do a lot of work before you can drive it. Being able to do your own repairs and shopping around for parts will save you money, but not everyone may be willing to take on such a personal project.