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Purchasing a luxury car goes beyond just getting around – it's about investing in top-notch craftsmanship, advanced technology and unmatched comfort, style and performance. Whether you're attracted to the prestige of a luxury vehicle or seeking an extraordinary driving experience, you can pick up expert tips to help you navigate the process of buying a luxury car confidently and easily in Savvy’s comprehensive guide. Learn more with us today!
Determine what you need from your car
Before diving into the luxury car buying process, it's essential to determine what you need from your vehicle. Consider factors such as seating capacity, storage space, technology features and driving performance. Additionally, you’ll need to think about what powers your car, such as whether you opt for a petrol, diesel, hybrid or electric model.
Are you looking for a sporty coupe for weekend drives, a spacious SUV for family adventures or a luxurious sedan for daily commuting? By identifying your specific requirements and preferences, you can narrow down your options and focus on finding a luxury car that meets your needs and enhances your driving experience.
Consider your budget
Luxury cars come with a wide range of price tags, so it's crucial to establish a budget before starting your search. Consider not just the upfront purchase price but also ongoing expenses such as insurance, maintenance and fuel costs. When it comes to insurance and maintenance, these are likely to be more expensive for luxury cars than other standard model.
Determine how much you can comfortably afford to spend on a luxury car without straining your finances. This may mean that you’re looking for the cheapest luxury cars on the market if you can’t quite afford the middle or upper-tier models.
Have an idea of how you’re buying the car
Decide whether you'll be buying the luxury car outright with cash, financing it with a car loan or obtaining a novated lease. Each option has its own advantages and considerations.
If you're paying cash, you'll avoid paying any interest or loan fees but the purchase may deplete your savings. Financing allows you to spread the cost over time, but you'll pay interest and fees throughout your term which could increase the cost by thousands of dollars.
Novated leasing offers tax benefits through a salary sacrifice arrangement, such as saving on GST and income tax, as well as having your running costs included in your lease agreement. However, this is limited to those who work for employers who are willing to offer such an agreement.
Keep an eye on resale value
New luxury cars, like all models, tend to depreciate quickly, so it's important to consider resale value when buying a luxury car. Research the depreciation rates and resale values of different luxury car models to get an idea of how well they hold their value over time.
Choosing a luxury car with strong resale value can help minimise the financial hit when it's time to sell or trade in the vehicle and potentially reduce your chances of negative equity. Features such as brand reputation, model popularity and vehicle condition can all influence resale value, so be sure to factor these considerations into your decision-making process.
Look for fuel efficiency
While luxury cars are often associated with high performance and opulent features, it's still important to consider fuel efficiency when making your purchase. Opting for a luxury car with good fuel efficiency, such as purchasing one with a green car loan, can save you money on fuel costs in the long run and reduce your environmental footprint.
Look for models with fuel-efficient engines, aerodynamic designs and hybrid or electric powertrains for the best fuel economy. Consider your driving habits and the typical petrol prices in your area when evaluating the fuel efficiency of different luxury car models.
Prioritise safety features
Safety should always be a top priority when buying any car and that’s no different for luxury vehicles. Look for those equipped with advanced safety features such as adaptive cruise control, automatic emergency braking, lane departure warning and blind-spot monitoring systems. These features can help prevent accidents and protect you and your passengers in the event of a collision.
Also, it’s crucial to check safety ratings and crash test results from ANCAP to ensure the car you're considering offers excellent safety performance. Investing in a luxury car with top-notch safety features can provide peace of mind and enhance your overall driving experience.
Should you buy new or used?
Deciding whether to buy a new or used luxury car depends on your budget, preferences and priorities. According to Bill Tsouvalas, Managing Director of Savvy, it’s essential to consider the pros and cons of each option before diving into your purchase.
“New cars can offer the latest features, technology and warranties, but they also come with higher price tags and more rapid depreciation”, he said.
“Used cars are more affordable and may offer better value for money, but you may have less peace of mind in potentially not knowing the full service history of the vehicle.
“You should always think carefully about whether you want to buy new or used before you start the financing process.”
Whether you decide to purchase a new or used luxury vehicle, you can compare a range of finance options with Savvy.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
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