Luxury Cars Cheaper Than Swift

Everyone dreams of the comfort, status and performance that premium cars offer. But with high taxes and import duties, these cars are expensive when purchased new. Same badge, same equipment, but different prices; this is only possible in the used car market. It happens to most of us: while scrolling through social media, we come across the exact vehicle we wanted, this time at a much lower price.

There are so many options under 10 lakhs, including BMWs, Mercedes and Audis. But should you be buying them? If you’re thinking of buying, here is what you must know about them.

Luxury cars under 10 lakh?

Luxury cars follow a trend in which their prices depreciate faster than those of regular vehicles. Luxury cars depreciate about 40-50% in just 3 years, and continue to depreciate much further. You can find many BMWs, Mercedes and Audis well under Rs. 10 Lakh.

The BMW X1 and 3 Series, along with the Mercedes-Benz C-Class and E-Class, are readily available in the used-car market. These cars are almost 10 years old.

They offer better comfort, ride quality, and performance, as well as safety, and, in addition, provide status compared to the new cars you can get under 10 Lakhs. You might already be thinking of upgrading from a hatchback to a luxury option. But wait, there is more to know about these luxury cars.

Financial Nightmare?

Cheap luxury car dealers often showcase their listings as the perfect premium replacement for your choice of new midsize SUVs or sedans. Buyers, while making these purchases, only consider the higher maintenance cost. The maintenance costs of these Luxury cars are about 1-2% of their purchase cost when new. If you had bought a new BMW X1 in 2013 for 35 Lakh, the annual maintenance cost would be close to Rs 70,000. However, even if you purchase the X1 at 9 lakhs, the maintenance will remain the same or even increase due to ageing. The maintenance will be 8-9% of the used car’s value, which will be a concern to many.

Beyond this, the high cost of spares, lower fuel efficiency, limited servicing options, and higher insurance costs are also neglected. And if you’re thinking of buying these cars on finance, the interest rates are higher. These factors can turn your dream car into a financial nightmare.

Who Should Buy These Cars?

Just having 10 lakh isn’t enough. If you already have a reliable daily driver and live in a metro city with access to a repair shop to fix and service your luxury car. Along with these, you should have enough money in reserve to cover any unexpected expenses that the car might surprise you with.

What are the better alternatives to these cars??

Aside from brand value, there are alternatives to these cars. If you’re looking for safety, tech, and comfort, you can consider the used Hyundai Creta or Kia Seltos under 10 lakh. Even if you are looking for a luxury sedan, you have options like the Skoda Octavia and Superb. Maintaining these cars is relatively easy and also offers a better resale value.

Things to keep in mind before buying these:

You should always ask for a full service history and check whether it was carried out at an authorised service centre, to avoid any warranty issues if valid. Avoid cars with any history of accidents or flooding. We advise having a professional inspect the vehicle before you make the deal. Also, check for any legal actions and fines against the car before the transfer of ownership.

What are your thoughts on these deals? Are you looking forward to them?