Luxury cars have become increasingly common on our roads, evolving beyond their traditional image of being exclusively for the wealthy. Today, mainstream luxury brands such as BMW, Audi, Jaguar, Mercedes-Benz, Acura, Land Rover, Cadillac, and Lexus offer models in their lineups that combine design, advanced technology, and comfort without an exorbitant price tag.
While some new luxury cars remain exceptionally expensive, purchasing a pre-owned luxury vehicle can be a smart financial decision. This year, the used car market presents some impressive deals. Buying a pre-owned luxury car offers multiple advantages and could be a savvy buy in 2025.
Given the growing popularity of pre-owned luxury cars, let’s explore why buying a pre-owned luxury car is an excellent investment in today’s market. I will discuss the pros of choosing a used luxury vehicle, why it makes financial sense this year, and some car models that could potentially become future collector’s items.
To provide the most accurate information possible, this article compiles data from authoritative sources, including U.S. News, NHTSA, Kelley Blue Book, Classic.com, J.D. Power, and CarEdge.
In 2023, Tesla led the U.S. luxury car market with approximately 650,000 units sold. BMW secured second place. Although the latest 2024 sales figures are pending release, a shift in rankings is expected, with EVs possibly losing some popularity in favor of hybrids.
The starting price for a 2024 Tesla Model 3 was $42,490, while the base MSRP for a BMW 2 Series Coupe was $39,600, excluding destination fees and add-ons. These vehicles are not the most budget-friendly options. The Acura Integra was the cheapest luxury car of 2024, with a starting price of $32,995. However, in 2025, this price has risen slightly to $33,000. These prices remain below the average price for a new car in January 2025, which stands at $48,978.
For buyers seeking the most affordable new car, the Mitsubishi Mirage is the cheapest new car of the year, with a starting price of $16,695. While it offers a fuel-efficient powertrain, some comfort amenities, and Apple CarPlay and Android Auto, it prioritizes economy and cannot compete, especially for buyers seeking style, extreme comfort, and advanced technology.
This is where pre-owned luxury cars become attractive.
Style and Design at Lower Prices Than New Cars
Luxury cars depreciate more rapidly than many other vehicle segments, with Lexus demonstrating the best depreciation and Tesla the worst. Lexus has an average five-year depreciation rate of 36.45%, while Tesla models depreciate by an average of 49.56% over the same period.
For those looking for luxury vehicles at a lower cost, this depreciation is good news. For example, you can purchase a 2016 BMW 3 Series for around $17,320. If you desire a sportier option, a 2020 Jaguar F-Type P300 can be acquired for approximately $34,452. For luxury EV enthusiasts, a top-of-the-range 2021 Tesla Model S Plaid now has an average used price of $58,055, down from its original price of nearly $142,000 just four years ago.
Various factors, including reliability, comfort, general depreciation, reviews, and owner feedback, influence the prices of used luxury cars. Even looking at the luxury car market leaders for depreciation and reliability – Lexus – a 2022 Lexus IS 300 currently has an average used price of $31,762, reduced from its MSRP of $40,780.
Potentially Lower Insurance Premiums
In addition to offering luxurious interiors, stunning exterior designs, impressive performance features, and cutting-edge technology, acquiring a used luxury car can lead to lower insurance premiums.
The average car insurance premium in 2024 was $2,068. New luxury cars often have higher insurance costs, primarily as they are worth more and are more expensive to repair. Rolls-Royce models have the highest average annual insurance premium, at $9,648. The Acura TLX has the lowest insurance cost for new luxury cars, at $2,422 annually, which is only slightly higher than the average rate. However, used luxury cars tend to be more affordable to insure. According to an insurance quote from Insure.com, insuring a 2020 Acura TLX costs around $1,739 per year. A 2018 Jaguar F-Type could cost between $2,498 and $2,981, and a 2020 Lexus IS 350, between $2,252 and $2,252 to insure.
Experience Top-End Performance
Many luxury cars are not merely designed to look elegant. Some deliver serious performance. Due to the lower costs associated with pre-owned luxury cars, you might buy a sporty, luxurious, and attention-grabbing performance vehicle for less than the price of a new car.
Luxury cars like the 2014 Audi R8, 2020 BMW 8 Series, 2016 Porsche 911, and the 2019 Chevrolet Corvette are all available on the used market for less than the average price of a new car because of high depreciation rates. This situation allows you to own one of these vehicles, at a lower cost than a 2025 Ford Mustang EcoBoost while still enjoying powerful performance.
Some Pre-Owned Luxury Cars Have It All
Each model listed below is designed for power, speed, proper driving. Compared to interior designs today, some may appear outdated but still represent the styles of the time regarding luxury and aesthetics. However, they are all more luxurious inside and outside than economy cars and even some higher-end mainstream cars in 2025, offering powertrains still capable of competing with newer models.
Advanced Technology and a Plush Interior
Choosing a used luxury car gives you more than a brand name; it offers advanced technology and luxurious interior design that still feels innovative. Brands such as Audi, BMW, and Mercedes-Benz have led the way in creating cabins that blend elegance with innovation.
The used 2018 Audi A6 costs a fraction of its original MSRP, while still featuring a high-resolution MMI infotainment system with intuitive controls, Google Earth navigation, and a Bang & Olufsen sound system. The cabin maintains a stylish appearance with wood inlays, plush interior, leather upholstery, and ambient lighting.
A pre-owned Mercedes-Benz E-Class (2017-2019) comes with dual windscreen displays integrated into the dashboard, ventilated leather seats, and a cabin fragrance system. A panoramic sunroof and ambient lighting are also included, creating a sense of luxury at a lower price.
You Could Be Buying A Future Classic Car
If you follow the market value of some of the most sought-after cars, you will see the increase in the original price since their production. It’s every collector’s dream to buy a car at an affordable price and sell it for millions later in life. Models like the Porsche 911 GT3 are known to hold onto their value, as prices have increased from their 2018 MSRP of around $145,000 to over $300,000 today.
It would be ideal if your 2015 Lexus IS 250 increased in value in the same manner, but sadly, this is highly unlikely.
There Is A Chance That Your New Used Luxury Car Could Go Up In Value
Some pre-owned luxury and classic cars can increase in value, becoming an investment opportunity if bought at the right time and price. Don’t go out and buy the first used luxury car you can find because of its age, as it’s not always guaranteed to go up in value.
Predicting if a car will increase in value requires a significant amount of research into limited productions, rarity, cult followings, and performance attributes. However, markets can be unpredictable, and what may become a classic today might not be one tomorrow. Notably, models like the BMW E46 M3 (2001-2006) are renowned for their sleek design, premium interior, and legendary driving dynamics. They have become a collector’s dream here in the U.S.A. Pristine examples with low mileage and original parts have experienced significant value increases, sometimes nearly doubling in the last five years.. This made the average used price of this M3 in 2020 $16,750, and today $31,700.
The 1st-generation Acura NSX, a sporty and luxurious “everyday supercar,” has also shown a huge rise in value from approximately $42,000 in 2020 to the current average used price of $92,251, with only two currently for sale. Due to its well-appointed interior, leather upholstery, rarity, eye-catching looks, and precision engineering, this pre-owned luxury car has become highly sought-after and a savvy investment for some lucky collectors.
Therefore, to summarize, purchasing a used luxury vehicle in 2025 could be a smart move since these pre-owned vehicles offer a combination of features and class to make it a good deal.
Used Luxury Cars To Buy In 2025
If you’re planning to buy a pre-owned luxury car in 2025, many options combine luxury, performance, and classy design. The cars listed below may not necessarily increase in value over the years, but as pre-owned options, they offer good value.
- 2017 BMW 740i 7 Series. Average used price: $19,367. Features a 320-horsepower 3.0-liter twin-turbocharged inline-six, cruise control, Bluetooth connectivity, and a dual stainless steel exhaust.
- 2018 Lincoln Continental Select. Average used price: $16,812. Includes a 305-horsepower 3.7-liter V-6, ambient lighting, a leather-wrapped steering wheel, and cruise control.
- 2019 Jaguar XJ R-Sport. Average used price: $30,385. Features a 340-horsepower 3.0-liter V-6, Meridian premium speakers, two subwoofers, and lane-keep assist.
- 2020 Lexus ES 350. Average used price: $28,206. Equipped with a 302-horsepower 3.5-liter V-6, a Pioneer premium audio system, Apple CarPlay, and a 5-star safety rating.
- 2021 Mercedes-Benz S-Class (S 500 4MATIC). Average used price: $62,396. The original MSRP was $110,850, and it has a 429-horsepower 3.0-liter mild-hybrid inline-six, smartphone connectivity, a Burmester speaker system, and can reach 60 MPH in 4.6 seconds.
