Used luxury cars from brands like BMW, Mercedes-Benz, and Audi are tempting for their premium features and lower prices, but they come with trade-offs. A 3- to 5-year-old luxury sedan or SUV can cost half its original MSRP, offering leather seats, advanced tech, and powerful engines at a fraction of the price. However, maintenance and repair costs remain high—replacing a BMW’s turbocharger or an Audi’s air suspension can cost thousands. Reliability varies by model; the Lexus ES and Acura TLX are among the most dependable, while older European cars often require specialized (and expensive) servicing.

Insurance is another consideration. Luxury cars cost more to insure due to higher repair bills and theft rates. Depreciation also continues steeply after the first few years, meaning your car’s value may drop faster than a mainstream brand’s. To mitigate risks, look for models with certified pre-owned (CPO) warranties or consider an extended warranty from a reputable provider.

If you’re set on a luxury car, research the most reliable model years and budget for higher upkeep. A pre-purchase inspection by a specialist is crucial to avoid buying a money pit.