Ordinary Income, Luxury Cars: How the Average Person Can Afford Them
Many may assume that luxury cars are beyond the reach of those with ordinary incomes. However, with a bit of planning and patience, it is indeed possible to own a luxury vehicle even with a modest budget. Let's explore how the average person can afford luxury cars, using both practical examples and budget-friendly strategies.
Strategy 1: Save and Invest Smartly
For many, the key to owning a luxury car lies in effective savings and investment. For instance, I managed to purchase my used Lincoln Town Car for a mere €6,000. This eleven-year-old car provided a reliable ride at an affordable price. My alternative, a used Volvo S60 of similar age, was also in consideration but ultimately deemed unnecessary. The choice was evident: a robust and durable car for a fraction of the cost.
Additionally, maintaining the vehicle is crucial. Given that the car is old and constructed with longevity in mind, the maintenance costs are minimal. This kind of car is essentially a big, luxurious taxi Ford, not quite as fancy but functional and cost-effective.
By carefully selecting a used luxury car known for its reliability, durability, and ease of maintenance, you can manage your finances better than with a newer, smaller car. Over a ten to fifteen-year period, the value depreciation would be negligible, making the initial investment worthwhile.
Strategy 2: Low Depreciation and Economical Options
Understanding the depreciation factor is crucial. One notable example is a 1983 Mercedes 300D, a car that retained its value exceptionally well. When it was first purchased in 1983, it cost €31,000. By 2005, I managed to buy it for just €800. Similarly, a 1977 Mercedes 240D, now available for €480, offers a compelling case for smart purchasing. The 1993 Mercedes 600SL, though initially priced at €123,000, was eventually available for €3,500, demonstrating the value one can find in used luxury cars.
These examples show that buying a luxury car second-hand can lead to significant savings. Moreover, choosing the right make and model that is reliable and durable can significantly reduce maintenance costs, making the ownership experience more economical.
Strategy 3: Budget-Friendly Maintenance and Servicing
For many, the cost of owning a luxury car can be daunting. However, there are ways to keep costs under control. For instance, I drive an Audi A6, a car that is often considered a luxury vehicle. Purchased when it was eight years old and significantly depreciated, the car was a bargain. It runs on a 2L diesel engine, which ensures low fuel costs, in fact, lower than my brother's old Corolla. Insurance is also average, not a major expense.
Key to maintaining costs on this vehicle is avoiding the official Audi dealer for servicing. Instead, I have an independent mechanic who specializes in European cars. This choice not only reduces the financial burden but also ensures the car is well-maintained without the inflated prices associated with official dealers.
Before the Audi A6, I drove a Subaru Legacy Liberty and a Ford Fusion. Both vehicles cost me more to own for different reasons. The Subaru, due to its age and frequent breakdowns, was a recurring expense. The Ford, being a large sports car, had higher insurance costs. In contrast, the Audi A6 has been the cheapest car I've owned for the past 15 years, only eclipsed by those few years when I was a student and could afford small hatchbacks.
Conclusion
The key to owning a luxury car with an average income lies in smart purchasing, effective maintenance, and a sensible approach to ongoing costs. Understanding the depreciation of used luxury vehicles and opting for regular and reliable makes can make a significant difference. Additionally, choosing an independent mechanic for regular servicing can reduce costs even further. By following these strategies, even those with ordinary incomes can enjoy the luxury of owning a luxury car without breaking the bank.