The advantage of buying a used luxury car rather than a new non-luxury car

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This article was published 18/03/2026 (203 days ago), so information in it may no longer be current.

It’s pretty common for new-car shoppers to look at what they can afford and go from there. Typically, that means focusing on vehicles from mainstream brands, even though owning a luxury vehicle is something many people aspire to.

But there’s a right-now alternative that could be intriguing: For about the same price of a new mainstream car, you could get a used luxury car instead.

Imagine you have about $35,000 to spend on a 2026 Honda CR-V. That’s a perfectly sensible choice. But for about the same price, you could get a 3-year-old BMW X3. The X3 is certainly more prestigious and desirable.

But is buying a used luxury vehicle a smart choice? The car experts at Edmunds have broken down the key attributes for you to consider.

Condition and warranty

Buying new guarantees a pristine vehicle, first ownership and the full new-car smell experience. It also provides the security of a full manufacturer’s warranty, which typically covers the first three years for a bumper-to-bumper warranty, plus an additional two years for the powertrain.

The new car aura will have long faded from a used luxury car, which will likely have minor cosmetic wear and tens of thousands of miles on its odometer. Luxury brands do commonly offer a four-year bumper-to-bumper warranty, and it’s common for luxury dealerships to sell used vehicles as certified pre-owned, which includes an inspection and an extended warranty. Still, buying new guarantees that you’re getting the freshest vehicle possible.

Winner: new car

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Style and performance

Luxury cars are meant to be aspirational, and as such, they typically have nicer interior materials, more elegant designs, and sportier handling than non-luxury models. Unique wheels and enhanced appearance set luxury cars apart on the road, and more powerful engines deliver livelier performance. There’s no question that a 2023 BMW X3 that offers up to 382 horsepower is a lot more fun and engaging to drive than a CR-V.

 

 

Performance can come at the cost of fuel efficiency. The best a 2023 X3 can get is an EPA-estimated 25 mpg combined, while the CR-V with its available hybrid powertrain gets up to 40 mpg combined. Many luxury engines also require expensive premium fuel, further increasing ownership costs. But style and performance are what many people desire, and a luxury vehicle won’t disappoint in this regard.

Winner: used luxury

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Features

Newer cars offer the latest tech, such as large touchscreens and advanced driver aids that help make driving easier. But these types of features typically debut earlier on luxury models before trickling down to mainstream lineups. A used BMW X3 and a new Honda CR-V, for example, both offer wireless connectivity for Apple CarPlay and Android Auto, wireless phone charging and adaptive cruise control.

There can be some upside to buying a used luxury car if you want the fancy stuff. On a used X3, for example, you can get front seats with additional power adjustments, ventilated front seats, a premium 16-speaker audio system and a head-up windshield display. Honda doesn’t offer any of these on the CR-V. Choosing a relatively recent used luxury car means you won’t miss out on advanced tech and comfort, and you’ll often gain some nice amenities unavailable in newer cars.

Winner: used luxury

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Deprecation and maintenance

 

 

Buying a new car means buying convenience. Most new cars are inexpensive to maintain for the first several years, often needing little more than oil changes and tire rotations. Any needed repairs will be free if they are covered under warranty.

In contrast, used luxury cars often require costly maintenance for components such as brakes and fluids. Parts and labor rates are also more expensive for luxury cars. Edmunds estimates that a BMW X3, for example, will cost approximately twice as much to maintain on average as a Honda CR-V.

Buying a used luxury car does help you avoid the worst timeframe for depreciation. When you sell a new vehicle after three years of ownership, it’s common for it to be worth only 60% to 80% of its original value. The depreciation rate typically slows after the initial three years. Still, it’s likely that a used luxury car will cost you more every year to own and operate.

Winner: new car

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Edmunds says

Buying a new vehicle is the sensible choice. You get to enjoy the full length of the manufacturer’s warranty and know that nobody drove it before you did. But car buying is driven by emotion as much as logic. If the thrill of fine leather and a powerful engine is what you dream about, buying a used luxury vehicle is a perfectly viable option.

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This story was provided to The Associated Press by the automotive website Edmunds.

Dan Frio is a contributor at Edmunds.