New luxury cars typically cost $35,000 to $60,000 or more. But used luxury cars just four or five years old and in superb condition often sell for half their original sticker prices or less, even though many of these cars have less than 75,000 miles on their odometers and plenty of life left in them. Slightly older luxury cars in great condition often sell for well under half of their original prices.
The supply of used cars finally is rebounding from the shortage created in the last few years by the recession. That growth in supply means used-car deals should further improve this year and in the next few years. But not every used luxury car is a good buy, even at 50% off. While just about any luxury car can provide elegant styling, lots of leather and a quiet, comfortable ride, some luxury brands—such as Audi and Jaguar—include older models with well-deserved reputations for being unreliable. Buying one that is no longer under warranty or soon to be out of warranty could lead to some hefty repair bills.
Among the great luxury cars you could own for half the original price or less—in some cases, considerably less…
2010 Cadillac CTS. The CTS sedan’s cabin is quiet, reserved and luxurious, but don’t be fooled—this car is a blast to drive. The base 3.0-liter V6 engine produces 270 horsepower (hp), and the steering feel is very good. The exterior styling is quite attractive, too. It’s the one American car that can hold its own with a BMW 3-series. The CTS is a reliable, well-made car, but in the minds of consumers, Cadillac hasn’t yet earned BMW’s elite reputation for build quality, so a used CTS often sells for a lower price. You should be able to find a 2010 CTS for less than a 2009 BMW 3-series.
Miles per gallon (MPG): 18 city/27 highway (regular fuel). Original manufacturer’s suggested retail price (MSRP): $35,165. Current price: Around $18,000.*
2009 BMW 335i. The BMW 3-series is the luxury sports sedan against which all others are judged. It is elegantly styled, comfortable and well-equipped inside, and it is tremendously fun to drive. It doesn’t offer as much interior space as many luxury cars, however, nor does it feel quite as plush inside. The 3-series handling and steering feel are truly exceptional. The 335i comes with BMW’s twin-turbocharged 3.0-liter six-cylinder engine, which produces an exhilarating 300 hp, though it has proved more trouble-prone than BMW’s nonturbocharged engines.
In one way, a used 2009 3-series might be even better than a new one—many aficionados argue that the hydraulic power steering of the 2009 3-series offers superior steering feel to the current 3-series’ electric power steering (though in fairness, both systems are excellent). MPG: 17 city/26 highway (premium fuel). Original MSRP: $42,200. Current price: Around $20,000.
2009 Acura RL. This isn’t a somewhat luxurious sports sedan like the Cadillac and BMW listed above—it’s a full-on luxury sedan with a softer, quieter, more comfortable ride. The RL has all-wheel drive and plenty of pep—the 3.7-liter V6 produces 300 hp—but performance takes a backseat to comfort here. It’s a good choice for luxury car drivers who put a priority on serenity and reliability over driving excitement. The cabin is quite elegant—some trim levels feature real wood in the console, for example. The RL’s reliability and safety scores are near the top of its class. MPG: 16 city/ 22 highway (premium fuel). Original MSRP: $46,680. Current price: Around $22,200.
2008 Acura MDX. The MDX sport-utility vehicle (SUV) has seating for seven people, yet it still is fun to drive. The base 3.7-liter V6 produces 300 hp, while Acura’s “Super Handling” all-wheel-drive system automatically adjusts the power provided to each wheel to improve handling performance around corners and in bad weather. The MDX is well-designed inside, too, with a quiet cabin, comfortable seats (though a bit tight in the third row) and plenty of leather. Acura redesigned the MDX in 2007, so even at six years old, a 2008 model is fairly up to date. MPG: 15 city/20 highway (premium fuel). Original MSRP: $40,195. Current price: Around $20,800.
2008 Porsche Cayenne. The Cayenne SUV combines the elite steering feel and confidence through the corners of a sports car, plush leather-laden interior of a luxury car and interior volume of a small SUV (meaning that it seats four adults comfortably).
Porsche offers a range of Cayenne trim levels, from the base 3.6-liter V6, which delivers 290 hp, up to the 4.8-liter twin-turbo V8 Turbo S, which produces 550 hp—enough to leave almost any other SUV far behind. This is a well-designed, reliable vehicle. On the downside, it isn’t very fuel-efficient…its ride isn’t as soft as that of most luxury cars…and even used, it is quite expensive when well-equipped because Porsches hold their value well. MPG: 14 city/20 highway (premium fuel). Original MSRP: $46,400. Current price for base model: Around $22,600. (Prices for 2008 Cayennes with high-end trim packages can be more than twice that amount.)
2007 Mercedes-Benz SL550 (shown in title). The SL is Mercedes’ top-of-the-line luxury sports car. This two-seat hardtop-convertible roadster is amazing to drive, even compared with the other cars on this list—smooth and comfortable, yet extremely agile and incredibly powerful. The SL550’s standard 5.5-liter V8 produces 382 hp, enough to get it from 0 to 60 miles per hour (mph) in just over five seconds. The SL is a stunningly beautiful vehicle to look at, too. And its interior is just as leather-covered and sumptuous as you would expect from a top-of-the-line Mercedes.
The only thing wrong with the SL is its sticker price—close to $100,000 when purchased new, even for the base model. But used SLs can be a different story. SLs from 2007 now sell for around the same price as a moderately well-equipped new Toyota Camry.
Even at seven years old, a 2007 SL, as long as it was well-maintained, is likely to be reliable. Mercedes hasn’t made major styling changes to the SL since 2003, so a 2007 won’t even look dated. MPG: 13 city/21 highway (premium fuel). Original MSRP: $94,800. Current price: Around $27,000.
Want to drive a Bentley? A high-end Audi? The Volkswagen Phaeton essentially is a Bentley platform with Audi drivetrain components, topped off with a VW badge. That might sound like a Frankenstein-esque combination, but it adds up to a wonderfully well-executed all-wheel-drive luxury sedan. The cabin offers an extremely high-end driving experience with plenty of interior space, leather, wood and an undeniable sense of quality. The Audi V8 engine and optional W12 engine (picture two six-cylinder engines fused together) offered in the Phaeton are powerful—335 or 444 horsepower (hp), respectively.
The Phaeton’s ride is quiet, smooth and confident. This isn’t just a luxury car…it is an elite luxury car. However, few car buyers were willing to pay elite luxury car prices for a VW, even a VW that had a lot more in common with Bentleys and Audis than with the old VW Beetle. VW, which sold 2,814 Phaetons in the US from 2003 through 2007 (model years 2004 to 2006), plans to introduce a new version here in a few years.
Today, Phaetons are among the best used-luxury-car bargains available. Fuel economy is quite poor, however. MPG: 14 city/21 highway (premium fuel). Original MSRP: $64,600 to $101,300. Current price: Around $10,000 (perhaps as much as $20,000 for a low-mileage example in excellent condition with the W12 engine).
*Prices and fuel-economy figures reflect base models except where noted. Current prices are based on Kelley Blue Book suggested retail value for cars in typical condition.
