Is buying a luxury car worth the cost? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial choices by offering interactive financial calculators and tools that provide objective and unique content. This allows you to conduct your own research and analyze data for free and help you make financial decisions with confidence. Bankrate has agreements with issuers such as, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make money The products that are advertised on this site come from companies that pay us. This compensation may impact how and when products are featured on this site, including for instance, the order in which they appear within the listing categories and other categories, unless prohibited by law. Our mortgage, home equity and other products for home loans. However, this compensation will have no impact on the content we publish or the reviews you read on this site. We do not contain the entire universe of businesses or financial offers that may be available to you. SHARE Peter Cade/Getty images

4 min read Published March 02, 2023.

Dan Miller Written Dan Miller Written by Points and Miles Expert Contributor Dan Miller is a former contributor writer for Bankrate. Dan wrote about loans as well as home equity and the management of debt in his writing. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are dedicated to helping readers gain confidence to take control of their finances through providing clear, well-researched information that breaks down complicated topics into bite-sized pieces. The Bankrate guarantee

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There are money-related questions. Bankrate has answers. Our experts have helped you understand your finances for over four decades. We strive to continuously give our customers the right guidance and the tools necessary to succeed throughout life's financial journey. Bankrate follows a strict standard of conduct, so you can rest assured that our content is honest and precise. Our award-winning editors and reporters produce honest and reliable content to help you make the right financial decisions. Our content produced by our editorial staff is objective, truthful and uninfluenced from our advertising. We're open about the ways we're able to bring quality information, competitive rates and useful tools to you by explaining how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for placement of sponsored products and, services, or by you clicking on specific links on our site. So, this compensation can affect the way, location and in what order items are listed, except where prohibited by law for our credit, mortgage and other home loan products. Other factors, like our own proprietary website rules and whether the product is offered in your region or within your personal credit score may also influence how and where products appear on this website. While we strive to provide a wide range offers, Bankrate does not include the details of every financial or credit product or service. If you're in the market for a brand new or used car , you may be thinking about whether purchasing a luxury vehicle is worth it. There isn't a minimum price or number of features that define the car"luxury car, "luxury vehicle," you will have several options. What are the best ways to decide if a luxury car is right for you There are a few factors that you will want to think about when choosing a car to suit your particular needs. Does the performance improve? If the car's performance is significant to you, you will want to keep an eye on the performance ratings of the vehicle. With them, you will be able to evaluate factors such as speed, handling, and the power of braking. Although this is not always the case some luxury manufacturers boast superior performance. Bankrate tip

Review ratings from third-party rating agencies like J.D. Power and Kelley Blue Book to see whether the quality of the handling is worth the cost. Cheaper cars can still be a pleasure to drive.

Do the safety ratings surpass those of other brands? Another factor to consider when looking at a luxury car is the maker's safety ratings. The luxury cars are known for being made of better parts and higher standards of manufacturing. That can often translate into better safety ratings for side or front impact, roof strength and safety features to prevent crashes, such as headlight brightness or safety systems to prevent crashes, in addition to other ratings factors. There is an Insurance Institute for Highway Safety (IIHS) is an independent, third-party organisation that aims to reduce the number of deaths, injuries, and property damage from motor vehicle accidents. The IIHS gives ratings to most new vehicles in various safety-related categories each year. When comparing luxury car models or models car's IIHS ratings for safety is a different standard to evaluate against other brands. Bankrate tip

Before you decide to purchase a luxury vehicle, consider which options are the most secure less than $25,000.

Are the features offered in a non-luxury brand? From leather seats to sunroofs Comparing various makes and models of cars is the comparison of a myriad of features. What is important to you may not be in line with the standard package options of a particular type of car. Consider putting in writing specifically what features mean the most to you which will aid you when you look for the right car . Certain features of higher quality that consumers are looking for when looking at a luxury vehicle include a top-end entertainment system as well as heated or massaging seats, or smartphones that integrate. Deciding on what is important to you will allow you to keep your feelings in check when you are going on a car shopping. Tips for Bankrate

Remember that vehicle advancements are always progressing. In addition the latest features in luxury cars tend to become tomorrow's standard features.

Are the investments worth the investment? While there isn't a set minimum price point that determines what is considered a luxury car, a luxurious car is likely to be priced higher when compared to other cars. They are generally depreciating assets which means that their value declines with time. Also, consider that it is common for the upkeep of luxury cars to be higher than those of less expensive cars. Repairs, parts, labor and like will generally be more expensive. Plan for the higher cost of ongoing expenses and the higher cost of purchase. Tips for a better bank rate

Utilize this offer estimate of how much your luxurious car will cost you monthly.

What is the difference between a fully loaded car is different from a luxurious brand ? A luxury car doesn't have a precise definition. What is thought of as a luxury car depends on the model of the car. Companies like Lexus, BMW, Mercedes or Jaguar are thought of as "luxury" in many people's minds. And while it's true that vehicles from these companies come with top-of-the-line features, you are also paying for the cachet associated with the name. Instead of buying a brand with a luxurious name you can consider buying a fully loaded standard car. Even a car as basic as a Honda Civic has many different trim options. Although the base package comes with standard features, pricier trims include a variety of higher-end options that are only available in luxury cars. Consider the types of things you're looking for and decide based on that. Luxury cars appreciate more quickly than other vehicles decrease in value when you leave the dealership. But luxury vehicles depreciate at a higher rate than middle-tier competitors. Quicker depreciation means that you likely will not make the amount you paid on the car when it's time to sell. Be aware of the factors that lead to more rapid depreciation. More on the market. Luxury car owners tend to purchase new cars every couple of years. It means that number of cars available sometimes exceeds the number of buyers. Some models are outdated. The people who shell out extra cash for a luxury car tend to want all the bells and bells. So an older model will not receive the high cost that you initially purchased it for, as models age much more quickly. Maintenance for your vehicle. Trips to the body shop are likely to cost more for newer or foreign-made models, thereby affecting the car's resale value. If you're looking to have luxury without excessive depreciation, think about purchasing a vehicle that is instead of brand new. So, you can get into the luxury segment without being stuck with the loss of money. Financing a luxury car Depending on the type of luxury car you buy it is possible to finance it the same way you finance any other brand new car. If however, your brand new luxury vehicle is higher than the traditional auto lenders would loan, you may have to think outside the box. Talk to the dealer. Luxury car dealers may have you can take advantage of. Think about placing more money down. If you're having trouble finding an auto loan for the full amount of the purchase, you might need to . Find financing. You may be able to finance your dream car with a personal or home equity loan. Explore a luxury vehicle lease. If you're looking for a luxury car but aren't sure you want to make a commitment to purchase then you could consider leasing a new one. The truth is that a full-loaded standard car as well as an expensive car are two options that are viable, and no one solution is right for everyone. Look at the different choices that are available in the cars you are interested in and ask yourself whether you're paying to get the name of the car. That can help you decide which option is best for your needs.

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Authored by Points and Miles Expert Contributor Dan Miller is a former contributing writer for Bankrate. Dan covered loans, home equity , and managing debts in his writing. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since the end of 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing precise, well-studied information that breaks down otherwise complex topics into digestible chunks.

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