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4 min read . Published March 02, 2023.

Authored by Dan Miller Written by Points and Miles Expert Contributor Dan Miller is a former contributor writer for Bankrate. Dan was a writer for Bankrate who covered loans as well as home equity and managing debts in his work. Written by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since late 2021. They are committed to helping readers gain the confidence to control their finances through providing clear, well-researched information that breaks down otherwise complex subjects into digestible pieces. The Bankrate promise

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If you have questions about money. Bankrate has answers. Our experts have helped you understand your finances for over four years. We continually strive to provide consumers with the expert guidance and the tools necessary to be successful throughout their financial journey. Bankrate adheres to strict standards , so you can trust that our content is truthful and reliable. Our award-winning editors and reporters provide honest and trustworthy information to assist you in making the best financial decisions. The content we create by our editorial team is objective, factual, and not influenced through our sponsors. We’re open about the ways we’re in a position to provide quality information, competitive rates and helpful tools to you by explaining how we make money. is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for the placement of sponsored products and services or by you clicking on certain links posted on our website. Therefore, this compensation may affect the way, location and when products are listed and categories, unless it is prohibited by law. This is the case for our loan products, such as mortgages and home equity and other home lending products. Other factors, such as our own proprietary website rules and whether or not a product is available within the area you reside in or is within your self-selected credit score range can also impact how and where products appear on this website. Although we try to provide an array of offers, Bankrate does not include the details of each financial or credit item or service. If you’re shopping to buy a new car or you may be thinking about whether purchasing a luxury vehicle is worth it. Since there isn’t necessarily a minimum price or number of features that define the car”luxury “luxury car,” you will have several options. How to determine whether a luxury vehicle is right for you There are several things you need to consider when shopping for the right car for your needs. Are the features better? If a car’s performance is important to you, then you should keep an eye on the performance ratings of the vehicle. With them, you will be able to assess factors such as speed, handling, and the power of braking. Though not always the case that some premium car manufacturers boast superior performance. Bankrate tip

Check ratings from third-party ratings such as J.D. Power and Kelley Blue Book to see if the quality of the handling is worth the price tag. Less-pricy cars can still be enjoyable to drive.

Do the safety ratings surpass other brands? Another aspect to take into account when evaluating a luxury vehicle is the manufacturer’s safety ratings. Luxury cars have a reputation 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 and safety systems to prevent crashes, in addition to other rating factors. The Insurance Institute for Highway Safety (IIHS) is an independent third-party organization that aims to reduce the number of deaths, injuries, and property damage caused by collisions with motor vehicles. The IIHS rates the majority of new vehicles in a variety of safety-related categories each year. When comparing luxury car makes or models vehicle’s IIHS ratings for safety is a different standard to evaluate against other brands. Bankrate tip

Before you sign off on a luxury vehicle, consider for the most secure options less than $25,500.

Are the features available in a non-luxury brand? From leather seats to sunroofs Comparing different brands or models means comparing a plethora of features. What you value most may not match up with the standard package options of a particular type of car. It is worth putting down specifically what features mean the most to you — that will help you as you search for the perfect car . A few high-end features that buyers are seeking when looking at a luxury vehicle include an entertainment system of the highest quality as well as heated or massaging seats, or the ability to integrate smartphones. Deciding what is most important to you can help keep your feelings in check as you go new car shopping. Tips for Bankrate

Be aware that the advancements in cars are always progressing. And more than that, today’s luxury car features are likely to be replaced by tomorrow’s standard features.

Is the investment worth the investment? Although there’s no set minimum price point that determines what constitutes a luxurious car, a luxurious car will command a price premium compared to other types of cars. Cars are typically depreciating assets which means that their value declines with time. Also, consider that it’s normal for the upkeep of luxury cars to be higher than the maintenance of cars that aren’t as luxurious. Repairs, parts, labor and the like are generally more expensive. Be sure to budget for increased ongoing costs as well as the cost of the purchase. Tip for Bankrate

Utilize this offer to know the amount your luxury vehicle will cost you monthly.

How a fully loaded standard car differs from a luxury brand Luxury car doesn’t have a precise definition. What most people think of as a luxury car depends on the manufacturer of the vehicle. Companies like Lexus, BMW, Mercedes or Jaguar are thought of as “luxury” in the majority of minds. And while it’s true that vehicles from these manufacturers come with high-end options, you’re paying a bit for the prestige associated with the name. Instead of a luxury brand you can consider purchasing a basic car. Even a car as basic as a Honda Civic has many different trim options. Although the base package comes with standard features, pricier trim packages include many more expensive features you might think are exclusive to luxury cars. Take note of the things you’re looking for and make your decision based on this. Luxury vehicles depreciate at a faster rate All vehicles depreciate the moment that you exit the dealership lot. Luxury vehicles, however, appreciate at a much faster rate than those in middle-tier competition. Depreciation that is faster means you’re likely to not get the amount you paid on the car when it is 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. This means that the amount of cars available sometimes exceeds the amount of buyers. Models become dated. Those doling out the extra cash for a luxury car tend to be looking for everything that bells and whistles. Therefore, a model that is older will not get the premium cost that you initially purchased it for. As models get older faster. Maintenance for your vehicle. Trips for a body repair can to be more expensive for newer or foreign models, negatively impacting the value of the vehicle’s resale. If you want luxury without extreme depreciation, consider buying a car that is instead of new. So, you can enter the luxury space without the burden of money lost. The financing of a luxury car is contingent on the type of luxury vehicle you purchase You may be able to finance it the same way as you finance any other brand new car. However, if the price of your new vehicle is higher than the conventional auto lenders can loan to you, you may need to think outside the box. Check with the dealer. Some luxury car dealers might have the opportunity to benefit from. Consider making a bigger deposit. If you’re having difficulty getting a car loan to cover the entire cost of the purchase, you might need to . Set up your own financing. You may be able to finance your dream car with a personal or home equity loan. Look into a luxury car lease. If you’re in the market for a luxury car but you aren’t sure if you want to buy, you might a new model. The bottom line A fully loaded car or an expensive car are both valid options, and there is no one answer that is right for everyone. Look at the different options available with the cars you’re looking at and consider whether you’re paying for the brand name that’s on the car. That can help you decide which option is best for your needs.


Authored by Points and Miles Expert Contributor Dan Miller is a former contributor to Bankrate. Dan covered loans, home equity , and debt management in his work. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the end of 2021. They are dedicated to helping readers gain the confidence to take control of their finances with clear, well-researched information that breaks down otherwise complex topics into manageable bites.

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