Luxury cars have evolved over the years and are now everywhere on our roads. They are not just built for the rich and famous like they used to be. Mainstream luxury brands like BMW, Audi, Jaguar, Mercedes-Benz, Acura, Land Rover, Cadillac, and Lexus all boast some cars in their new lineups that don’t cost the earth and still provide you with some plush design cues, advanced tech, and the height of comfort. On the other hand, though, some luxury cars are famously eye-wateringly expensive new, and beyond the budget for many of us.
But this doesn’t mean you can’t own a luxury car, and some of the best deals you will get this year may come in the form of a used luxury car. Alongside some good deals that can be found, buying a pre-owned luxury car comes with more than one upside and could serve as a savvy buy in 2025.
This is why we have decided to take a look at why buying a pre-owned luxury car is a smart buy in today’s market, and have included information about the pros of buying a used luxury vehicle, why it makes sense to do so this year, and some models that could potentially become future classics.
In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturers and other authoritative sources, including U.S. News, NHTSA, Kelley Blue Book, Classic.com, J.D. Power, and CarEdge.
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High-Quality At A Lower Cost
In 2023, Tesla was the U.S.A.’s leading luxury car seller, with reported yearly sales of approximately 650,000. In second place was BMW, and while we are waiting for the newest sales figures for 2024 to be officially released, we are likely to see some movement in the pack due to EVs becoming less popular in place of hybrids.
The lowest starting price for a Tesla Model 3 in 2024 was $42,490, while the lowest MSRP for a BMW 2 Series Coupe was $39,600, excluding destination fees and add-ons – so neither are exactly the most budget cars. The cheapest luxury car of 2024 was the Acura Integra, which boasts a starting price of $32,995, while in 2025, this price has gone up ever so slightly to $33,000. But these prices are still below the average price for a new car for January 2025, which stands at $48,978.
If you are looking to spend next to nothing on a new car, the Mitsubishi Mirage tops the pile as one of the cheapest new cars of the year, with a very wallet-friendly starting price of $16,695. Though you do get a frugal powertrain, some comfort features, and Apple CarPlay and Android Auto, it is economy at its best and will never compete, especially if you are looking for some style, extreme comfort, and techy features. This is where pre-owned luxury cars come into their own.
Style And Design At Lower Prices Than New Cars
Luxury cars depreciate a lot quicker than a lot of other segments, with the best luxury car brand in terms of depreciation being Lexus and the worst being Tesla. Lexus boasts an average 5-year depreciation rate of 36.45%, while Tesla models depreciate, on average, by 49.56% over the same period.
|
Brand |
5-Year Resale Value |
|
Acura |
59.75% |
|
Cadillac |
58.53% |
|
BMW |
57.33% |
|
Volvo |
57.24% |
|
Audi |
56.43% |
|
Lincoln |
55.70% |
|
INFINITI |
55.11% |
|
Porsche |
53.79% |
|
Land Rover |
51.77% |
|
Mercedes-Benz |
51.76% |
|
Jaguar |
50.57% |
Now, this may not be the best news for those of us who buy luxury cars from new and want to sell them with decent returns later on, but for those of us who fancy a bit of luxury but cheaper, this is good news.
If you are in the market for some luxury cues and the famous Bavarian badge, you can now buy a 2016 BMW 3 Series for $17,320. If you are looking for something a little sportier, a 2020 Jaguar F Type P300 can be bought for around $34,452, and if you are a fan of luxury EVs, a top-of-the-range 2021 Tesla Model S Plaid now has an average used price of $58,055, down from its original price of nearly $142,000 just four years ago.
Of course, aspects like reliability, comfort, general depreciation, reviews, and owner feedback can affect the prices of used luxury cars. But, even if we look at the luxury car market leaders for depreciation and reliability, Lexus, a 2022 Lexus IS 300, now has an average used price of $31,762, down from its MSRP of $40,780.
Potentially Lower Insurance Premiums Could Be Available
Alongside buying a car that has a plush interior, a beautiful exterior design, impressive performance features, and state-of-the-art technology, luxury cars can also present an opportunity to own a car, which means you will pay a bit less for your insurance premium.
The average car insurance premium in 2024 was $2,068. New luxury cars tend to be more expensive to insure, generally because when they are new, they are worth a lot more and more expensive to repair, with Rolls-Royce models topping the list with an average annual insurance premium of $9,648. The cheapest new luxury car to insure is the Acura TLX, with an annual insurance cost of $2,422, putting it a few hundred dollars above the average.
If we look at pre-owned luxury cars, though, they tend to be cheaper. According to an insurance quote from Insure.com, a 2020 Acura TLX will cost you, on average, $1,739 a year to insure. A 2018 Jaguar F-Type will cost you between $2,498 and $2,981, and a 2020 Lexus IS 350 will cost you between $2,252 and $2,252 to insure.
You Can Enjoy Top-End Performance
One of the best things about a lot of luxury cars is that they aren’t just meant to look good and ooze executive style. Some are serious performance beasts, and with the lower costs associated with pre-owned luxury cars, you could end up owning a sporty, luxurious, and head-turning performance stallion for less than a new car.
Luxury cars like the 2014 Audi R8, 2020 BMW 8 Series, 2016 Porsche 911, and the 2019 Chevrolet Corvette are all available on the used market for less than the average price of a new car, thanks to their relatively high depreciation rates. But that means that you have the luxury of owning one for less than a 2025 Ford Mustang EcoBoost while still enjoying potent driving.
Some Pre-Owned Luxury Cars Have It All
Each model listed below is meant for power, speed, and driving properly. Compared to today’s interior design, some may be lacking a little but are indicative of the styles of the time in terms of luxury and aesthetics.
But there is one thing that is for sure: they are all more luxurious inside and outside than economy cars, and even some higher-end mainstream cars in 2025, and all boast a serious powertrain that is still more than capable of taking on some of the newer models available today.
|
Model |
2020 BMW 8 Series |
2019 Chevrolet Corvette |
2014 Audi R8 |
2016 Porsche 911 |
|
Engine |
3.0-Liter Inline-Six |
6.2-Liter V-8 |
4.2-Liter V-8 |
3.4-Liter Flat-Six |
|
Transmission |
Eight-Speed Automatic |
Seven-Speed Manual |
Six-Speed Manual |
Seven-Speed Manual |
|
Horsepower |
335 Horsepower |
455 Horsepower |
430 Horsepower |
350 Horsepower |
|
Torque |
368 LB-FT |
460 LB-FT |
317 LB-FT |
287 LB-FT |
|
Driveline |
Rear-Wheel Drive |
Rear-Wheel Drive |
Rear-Wheel Drive |
Rear-Wheel Drive |
|
0-60 MPH |
5 Seconds |
3.7 Seconds |
4.4 Seconds |
4.6 Seconds |
|
Top Speed |
Unverified |
Unverified |
Unverified |
Unverified |
|
Starting Used Price |
$33,748 |
$38,107 |
$40,302 |
$42,814 |
Advanced Technology And A Plush Interior
When you buy a used luxury car, you’re not just getting a premium badge – you’re stepping into a world of advanced technology and exquisite interior design that still feels ahead of the curve. Brands like Audi, BMW, and Mercedes-Benz have been pioneers in crafting cabins that merge elegance with innovation, and even older models retain that executive feeling when you get in them.
The 2018 Audi A6 costs a fraction of the price of its original MSRP, but you still get a high-resolution MMI infotainment system, complete with intuitive controls, Google Earth navigation, and a Bang & Olufsen sound system, while the cabin is still stylish with wood inlays, plush interior, leather upholstery, and ambient lighting that creates a serene space.
Similarly, a pre-owned Mercedes-Benz E-Class (2017-2019) offers features like dual windscreen displays integrated into the dashboard, ventilated leather seats, and a cabin fragrance system. Also featured in the E-Class is a panoramic sunroof and ambient lighting, giving you that opulent feeling but for less.
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You Could Be Buying A Future Classic Car
If you follow the market value of some of the most sought-after cars on earth, you will see that the original price has gone up a huge amount since their build. It is every collector’s dream to buy a car cheaply and have the option of selling it for millions of dollars later on in life.
Models like the Porsche 911 GT3 famously hold their value very well, and we have seen prices shoot up in the last year from their MSRP in 2018 of around $145,000 to over $300,000 today. It would be great if the 2015 Lexus IS 250 that you bought new would do the same thing, but unfortunately, it is very unlikely.
There Is A Chance That Your New Used Luxury Car Could Go Up In Value
Some pre-owned luxury cars, especially luxury classic cars, can go up in value and, if bought at the right time and for the right price, can become an investment opportunity. We are not saying to go out and buy the first used luxury car you can find because it is a certain age, and there is a chance that it could go up in value – it doesn’t always work like that.
It takes a lot of research into limited productions, rarity, cult followings, and performance attributes to predict if a car will go up in value, but the market can be fickle, and what may become a classic today may not tomorrow.
That being said, models like the BMW E46 M3 (2001-2006) are known for their sleek design, premium interior, and legendary driving dynamics and have become a collector’s dream here in the U.S.A. Pristine examples with low mileage and original parts have seen their value shoot up significantly and, in some cases, have nearly doubled in the last 5 years. The average used price of this M3 in 2020 was $16,750; today, it sits at $31,700.
Similarly, and more impressively, the 1st-gen Acura NSX, a sporty and luxurious “everyday supercar,” has seen a huge rise in value, from around $42,000 in 2020 to today’s average used price of $92,251, with only two currently for sale. Thanks to its well-appointed interior, leather upholstery, rarity, eye-catching looks, and precision engineering, this pre-owned luxury car has become a very sought-after car to own and, for some of you lucky collectors, an incredibly savvy investment.
Used Luxury Cars To Buy In 2025
If you are looking to buy a used luxury car in 2025, there are some options out there that offer a combination of luxury, performance potency, relatively low average used prices, and the class you’d expect from a high-end brand. These models won’t necessarily go up in value in years to come, but as a pre-owned vehicle, they can make for a good deal with a lot of class.
- 2017 BMW 740i 7 Series. Average used price: $19,367. Boasts a 320-horsepower 3.0-liter twin-turbocharged inline-six, cruise control, BlueTooth connectivity, and a dual stainless steel exhaust.
- 2018 Lincoln Continental Select. Average used price: $16,812. Features a 305-horsepower 3.7-liter V-6, ambient lighting, a leather-wrapped steering wheel, and cruise control.
- 2019 Jaguar XJ R-Sport. Average used price: $30,385. Features a 340-horsepower 3.0-liter V-6, Meridian premium speakers, two subwoofers, and lane-keep assist.
- 2020 Lexus ES 350. Average used price: $28,206. Features a 302-horsepower 3.5-liter V-6, a Pioneer premium audio system, Apple CarPlay, and a 5-star safety rating.
- 2021 Mercedes-Benz S-Class (S 500 4MATIC). Average used price: $62,396. The original MSRP was $110,850, and it boasts a 429-horsepower 3.0-liter mild-hybrid inline-six, smartphone connectivity, a Burmester speaker system, and can reach 60 MPH in 4.6 seconds.
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