What Are the Rules Around Buying a Luxury USED Car?
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- Опубликовано: 16 сен 2024
- Brian gets HEATED answering this question! Does the one-year “same as cash” rule for luxury cars also apply to USED luxury vehicles?
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This was one of my FAVORITE moments in a live show. Gold!
That hit nerve for Brian. 😂
100% with Brian. Wouldn’t waste any of my hard earned money on a depreciating liability like a luxury car.
Ease encourage Brian to not hold back. He should be encouraged to express himself fully😂.
Thanks for making it fun!
Probably most passionate reaction I have seen from Brian. I was on the fence between a BMW X5 and a Lexus RX 500h. I guess I’m going with the Lexus now. 😂
I feel like me and Brian could be best friends. My wife is in the same boat. Tried to talk her out of her used luxury SUV we bought (cash) last year. Has so many doohickies and thing-a-ma-bobs that are breaking all the time. Just got an oil change this week and, guess what, some kind of pinion leak going on now. I think its still under the powertrain warranty, but is just an example. Yeah, it's fantastic on trips but geez. We bought a RAV4 as an extra care for just kicking it around town and going downtown and driving kids around and it actually tends to get way more use and just runs and runs.
Best Brian rant ever. I love these guys😂
I went to from BMW to Lexus for this very reason.
Once owned a Cadillac SRX. Every time I took it in with a problem it was at least $1500. Tires wore out way too fast and it was partially due to the fact that they had different sized tires on the front and back making it impossible to rotate them. Love my Toyota. Very dependable and the few repairs i have had are in the $500-$800 range.
Every car I have owned over the past 21 years has staggered sizes, and use directional tires so that you can not rotate them. These are also sports cars with UHP tires, and associated very-fast-wear tread. I have got worst case 28,000 miles and best case 42,000 miles on various brands on various cars. At a price between $1000-$1400 for out the door price, averaging approximately 32 miles per $1.
I looked up the cost for tires for a 2022 Camry SE fwd on discount tire. Out the door price with warranty like I buy on my cars is $1000. If you get the full 60,000 miles they claim for most tires that fit this car, that's 60 miles per $1. Lets say you drive for 15,000 miles a year. That means you pay $250 per year for tires vs on my car paying $469. Its not a big cost, it is savings... just not that much. The $219 saved on tires is not a big enough number to drive the purchase decision for which car to drive.
Put this one on the top 10 money guy moments list for sure. Classic! 🤣
Porsche is the outlier here, they are insanely reliable, beyond Japanese mfg in many cases. But when they need something it can get Spendy. They do tend to hedge the depreciation really well if bought right. I chalk these costs up as “entertainment and enjoyment” in the budget category. You’re not buying utility at this point. Many of us would rather spend $$ on a really exciting car than a vacation.
No they’re not. Ask the dealer. Porsche are known for high repair costs and frequent issues
@@darbyohara I’ve owned and tracked many… your statement is inaccurate. By far the most cost effective “luxury/borderline exotic” you can buy. It’s not a civic, but compared to MB/BMW, they are miles ahead. Look at jd power dependability study, Porsche ranked #2 behind Lexus.
I totally agree! And I do the same 😆
@@darbyohara The data does not support your claim of frequent issues. My own anecdote is that I had zero repairs on my Porsche. Looking at data from JD Power from this year, Porsche was near middle of the pack. Brands such as Ford, Mercedes, Acura, Suburu, Volvo, Volkswagon, Chrysler, and Audi (and many others) did worse than Porsche.
Yep. I've owned a 2009 Porsche Cayman S for the past 4 years. It's expensive to maintain, but I do most of the jobs myself thanks to how-to RUclips videos. For repairs, I had one spark plug coil go out. I think the dealer did it for free. The 12-year maintenance schedule was a lot of stuff. I DIY'ed oil change, spark plugs, engine air filter, cabin air filter, serpentine belt, cleaned the throttle body. I paid a shop to change the brake fluid and transmission fluids (PDK). Total cost was about $1000. This year was a DIY oil change for $60.
Brian is right. Don't buy a sports sedan/coupe unless you'll love it. Don't buy it unless you'll drive it hard (get your money's worth AND you'll do a majority of the maintenance yourself (to save money). Over engineered luxury is not worth it (BMW, Mercedes), but if you like the driving experience, well made sports cars are worth it. Because of these two points the only brand from Europe I'd buy is Porsche. And I did, I bought a ten year old Porsche Cayman S 4 years ago and do most of the maintenance myself.
Oil change at the dealer: $330. DIY it's $60 and 1 hour of your time.
Bo is also right. I highly recommend buying used luxury/sports cars (3-10 years old). You'll save on guaranteed depreciation, but spend more on variable maintenance costs. Just know it will cost you more to maintain, either with your money or your time and effort (watching how-to RUclips videos, getting your hands dirty, etc).
Id rather have a Toyota any day. Love my highlander
You can't beat a Toyota. That's what my grandfather always said.
Single and local owner of a luxury car preferably one owned by an older person. You can get a lot of car, with low mileage. But the repair costs are real
It definitely depends, routine maintenance is free at my Euro Lux dealership year round (oil change, fluid change, interior vacuuming, tire alignment & a multi-point inspection) and at the end you get 10% off services required. To be fair I drive a (now) 15 year old luxury sedan and the smiles to gallons is well worth it.
My father in law loves Porches, and he owns 2. I believe they are under warranty, but they spend so much time in the repair shop, sometimes both are in there at the same time!
Mine was fine, did not have problems. The anecdote that your father in law has to repair his Porches constantly is exactly equal to the one that I never had to repair. The averages to average repairs, lol. 😀
@@nobeliefisok9174 It might depend on the type of Porsche. His 911 turbo spent a lot more time in the shop than his Cayenne, which is designed to be more of a daily driver.
@@Joenzinator Agreed, I was going off the key word "Porches" and that Brian was talking about specific brands, not models. Mine was a 997.2 version of the 911 S4 cabriolet. I would have rather had a 911 turbo, same year otherwise but they were much more costly used. Perhaps my model was less likely to need service? Something else I learned was that the car handles so predictably good that its actually kinda boring at normal around-town speeds and roads. The turbo versions acceleration would partially make up for that, but not completely. I have more fun driving my other three good sports cars instead of the Porsche. So I am not a Porsche person. Of my others, the AMG C63S cabriolet is by far my favorite to drive. Its like owning a barrel full of monkeys, endless joy driving. Fingers crossed that it rarely or never needs repair.
7:46 “I had a buddy…”
Bo: 🙄⌚️👀
As a car enthusiast and also a frugal saver, this is always a tricky line to walk. If you have very specific tastes in cars like I do, sometimes only luxury brands offer what you want. If you want a rear wheel drive sedan or a wagon, you pretty much have to look to luxury brands.
Also there's the issue of specific models within the brands. You can spend $40k on a basic luxury brand sedan, but there are plenty of commodity brand SUVs that cost way more.
The BEST luxury car to buy is a used - certified pre owned!
Ask the dealer who buys those the most - millionaires. A 2-3 year old cpo off lease is damn near a brand car and still has warranty on it yet it’s 20k less than new
I bought a 2 year old Lexus and been driving for 13 years. I got my money worth. I’m looking to buy another now and sticking with Lexus. No German etc. Totally agree with Brian!
If you want to build wealth don't waste your money on high-priced automobiles, they are liabilities, not investments. The vast majority of millionaires drive average 10 to 15-year-old everyday run-of-the-mill cars.
Can’t agree more. I want a quality, dependable luxury care that will last and that I don’t have to spend an arm and a leg on to maintain it. The only ones I’d buy are Lexus, Acura, and Lincoln.
I love how passionate they are 😂. I'm a car guy and actually don't mind spending money on my car.
Run flats cost a ton. Also speed rated summer tires.
Think I did it the best way I could. CPO X3. 2 years old and 24k miles for $20k less than new. Warranty for three years and unlimited miles. The wonky tire sizes are true but I replaced mine with those of a normal size. The maintenance he speaks of is also true. I do all my own maintenance so it wouldn’t matter what I bought.
That is the best way to get one. Ask the dealer who they usually sell those to and they’ll say millionaires
Toyota/Lexus >>> all others. My next luxury car may be a Toyota Century.
I love this channel..
Thank you for consistently providing content!
Bo: "Where do we disagree?"
Me: 😂😂😂
Never change, gents.
Toyota Camry and Corollas have tire warranty at Costco that are 75k miles and comes out to 144$ a tire.
to be fair, I drive a Lexus as well, for this exact reason. I said to myself, "I'm 40 years old, so it's time for a mid-life crisis. But I want my mid-life crisis to be a good investment with excellent resale value with good maintenance records." So I went out to ConsumerReport, and looked up "luxury sports sedans" - and yeah, at the time the best value was the Lexus IS 350. I got it 2 years old (a 2014 I got in 2016), for 35k (sold new for 50k).
I've had it for 7 years - excellent car. (Sub-par Infotainment system, though: no touchscreen. You end up using a joystick, which is NOT a good experience, especially if you have to type a name into the GPS. The Volkswagon system is much better.)
But yeah, tire replacement is a biznitch.
I got a used BMW from CarMax, and got a 4 year warranty on all parts / repairs for $2200. That was a STEAL for the warranty. I had about $4000 in repairs the first year! A BMW dealership knows this, and their warranties on their used cars are 3x as expensive.
The issue with CarMax warranties is they always go for the least expensive parts which means after market parts. I don't have an issue with those parts and most of them are made in the same factories BMW gets their parts however the aftermarket parts typically don't go through the same BMW approved inspections so aren't considered BMW approved. The issue is there's a lot of work on BMWs that only the dealership can do. And every BMW dealership I've ran across will not work with after market parts. And of course BMW approved parts are way more expensive than the after market parts CarMax warranties pay for. Some options I was provided by the warranty in my past situation was the after market part cost $2500 while the BMW approved parts cost $4000. They would pay $2500 towards the BMW approved parts and I would have to cover the $1500 balance. Well I raised hell until the warranty company and dealership reached a compromise more agreeable to me. The warranty company increased their pay towards the part from $2500 to $3000. The dealership applied some type of discount towards the part to reduce the price from $4000 to $3500....which left me still owing the $500 difference but was much better than paying the original $1500 difference. It took nearly 2 months of negotiating to get there. Never ever buying a BMW again.
I've seen 4 year old Audis listed for $30k that were $80k new. You may spend a lot of repairs/maintenance, but not $50k in 4 years
Audi A8 cost about $85,000. Cost $9,000 to replace the AC system. I’ve been a German car mechanic for 10 years.
@@reaper-sz5tm What percentage of A8s needed this done? And how old were they when they needed it?
@@emoney1231 I’m
One man. I can’t give you an estimate of A8s that need it, but I can tell you across the entire Audi line up, carbon build up is a VERY frequent repair and not cheap bill. $1500 minimum every 60,000 miles
Brian is based. Love that
It's interesting that he didn't classify Tesla as Luxury (agreed that is it not the traditional definition) but then also didn't recommend one, even though he has 2
EVs not for everyone, yet. But their TCO is less than his recommendations
Tesla is far from a luxury brand.
@@cbell5017 The S and X are luxury. But not their 3 and Y
Buying used is usually a great idea. However I feel with the European brands it’s a terrible idea in most cases. There’s a reason most people lease these vehicles. They don’t want to deal with maintenance costs. Plus at 3+ years is when major repairs start happening for these brands. Not worth it to me. To each their own!
We have a 2011 GL450 and we get our tires at discount tire. I bought 4 new tires for like $800 like 3 years ago...and havent had to replace them. I will in the spring but dont say crap like "luxury" tires are special and last 1 year. Gimme a break
Luxury car are for showing off only (parties,meet ups) not your work car , not your daily drive. You only allowed to drive it for 5000miles a year or your maintenance will cost you another car
What about an 8 year old used Lexus ES/IS?
You can find nice luxury used vehicles sometimes even cheaper than a camry, altima, maxima, etc that are filled with features, leath seats, etc.
Yes you can. I do, and have spent less than most people I know on vehicles in total. But the best way to save tons of money on cars is to own cars for 10+ years (hopefully) until they need regular repairs. Good maintenance really will prevent nearly all repair costs.
Used German cars (Audi, VW and BMW) with over 50k miles and/or 5 years old are empty money pits. They will bankrupt you. My 2002 Lexus ES300 is super reliable and quality is unparalleled. Bought it from the original owner 2 years ago with all maintenance done at a Lexus dealership from day one. Had to replace some 20 year old OEM parts (starter, alternator) but engine and transmission will last well over 300k miles. Best is it’s paid off, no monthly payments
Some years ago I purchased a used BMW 525I 2005 model. I made the purchase around 2008. It had only 30,000 miles and I purchased the 7 year extended warranty through CarMax. I thought I had all my bases covered. 3 years of driving the car all of a sudden refuses to start. Found out the mechatronic unit needed to be replaced. WTF is a mechatronic unit? Evidently it's the computerized brains of the transmission and second most expensive thing to fix after the engine. $6500 in total is what it was going to cost me! Whatever. I have the warranty. Well here's where it gets interesting. The warranty stated that if there are less costly after market parts available that's what they would pay for. The BMW dealership said nah uh....We only put BMW approved parts on cars we work on. Damn...Well I will just take it to a mom and pop garage. Every one I went to said only the dealership has the equipment needed to replace the part and only their mechanics are regularly trained in replaing it with up to date tools etc. So after almost two months of negotiation between my warranty company and the dealership the Warranty company agreed to pay a bit more for the BMW parts but not the full price....the dealership agreed to lower the price of the BMW approved parts a bit through duscounts and I ended up covering the remaning $700 balance. Freaking nightmare. It turned me off of ever buying BMWs or luxury cars again. My next car was a Camry which I'm driving till this with no major repairs.
I get 2 years of autocross out of my Boxster’s 200TW tires. What is Brian’s wife doing to tear through tires at 30k??
I stay away from luxury cars. Most money I ever spent on a vehicle was $36k for a used truck I just bought. 2 year old 30k miles original MSRP was 54k. That's $750/month in depreciation. Buying new would be $60k for same truck build.
I paid 60% cost of new for a 2 year old truck. Think how many people just light that $24k on fire and go for the new vehicle.
I agree with the first guy
I got a 2000 dollar e bike this yr
And whenever I take my bicycle into the bicycle shop I always get shaky because I’m so scared it’s gone be expensive
It’s ALWAYS under 200 bucks
It’s USUALLY under 100
I’m gone say this I usually spend no more than 50 bucks on it
Most months I spend zero dollars on it
I will never understand how people spend so much money just going to the grocery store and driving to work
They have no clue how much they spend just driving to work and oculi g up groceries from the supermarkets
Man…I spend zero dollars doing all this stuff lol
Sounds like you need some more regulations against anti competitive and anti consumer behaviour. Ban limiting access to tires and parts like that and set minimum warrancy requirements on tires and rest of the car and all other products for that matter by law to force quality, safety and less garbage tires.
I love German luxury brands, but only because I know how to work on them and not fall into these traps the Brian ran into.
Also, learn to turn a wrench. The oil changes on these vehicles aren't difficult. The Mercedes dealership will charge me $150+ for an oil change and a 7 point inspection, i can buy the mobile 1 0w40 euro brand, 10qt for $60 if i find a deal, a mann filter for $10, and replace then other air filters for another $30. So it takes me a couple hours on a Sunday, big deal.
Couple hours on a Sunday to save $50? I'll happily send that bad boy into the shop.
I wonder if a wrx counts as luxury 🙈
Personally, I've had the best experience with BMW's. Acura's and Lexus's are just Honda's and Toyota's, fake luxury.
DIY ftw
There's only one rule to leep it attenable: learn how to wrench on your own car.
how come you never say what I think it is? is it a land rover?
Don’t buy any luxury cars!
Bo still waiting on where they disagreed answer 😂
Acura!!! Haha
So we agree, Acura doesn’t qualify as luxury? Which means it doesn’t count toward “same as cash rule”??
Definitely buy used luxury vehicles, not new. I bought a 2011 Mercedes that when calculating with inflation was $100,000 back in 2011. I just bought it for $10,000, that’s a lot of depreciation. I personally work on my own cars but if you don’t, your maintenance cost is still gonna be way less than the depreciation you’ll get when buying new. Just make sure it’s got good maintenance history and do your research on which ones are decently reliable.
Isn't the point that high quality engineering will last longer? The German vehicles should last forever, right?? What the heck
but toyota with crazy markup is almost the same price as those european cars😂
We've had what they're considering luxury brands for most of my child and adult life (if their luxury definition is $70-110k like Brian implies). His experience does not match my own. They're more expensive, sure, but I don't think of these cars being outside the realm of possibility to a portion of the population if that's where personal interests lie - not for "showing off"). You COULD save 40% instead of 30% gross some years, but then you're not necessarily living the life you want to live. With this said, I understand the pushback from someone who specializes in finance. Sometimes the message needs to unambiguously pretend there aren't exceptions so the people on the edge lean away instead of toward luxury cars.
All luxury cars are very unreliable and cost a fortune to maintain. And repairs for some cars will cost more than you paid for the used car. Junkyards are full of BMW M series because people can’t afford the $30k to replace the transmission. Or the car doesn’t run anymore because the power seats failed. If your going to own a luxury car you need to lease it. Which means you better have the money to throw away. Ie.. your already wealthy
there all scam jobs! 🤣
Brian is SO WRONG
Problem is that Lexus interiors are extremely outdated and they barely make any compelling drive trains. A Lexus IS350 is a joke compared to a BMW m340i
Lexus and Acura’s are miserable cars though 😞
Lexus is essentially a Toyota lol. I'm not a fan of "luxury" cars.
Lexus is Toyota. One of the most reliable cars on the road.
The tires on my Porsche 911 are only $2400 installed! And the oil change is only $450!
Such an awesome highlight! I chortled a bit (but agree with ) at Brian's rant.