Luxury SUV means different things to different people. For some people, the term luxury implies a high-end stereo system, leather interior, and top-of-the-line safety features. For others, the term luxury equates to one word — expensive.
It’s no wonder. Recent numbers show a serious margin when it comes to standard SUV pricing. Take, for example, the 2020 Kia Telluride. The SUV features third-row seating, a V6 engine, and a sleek exterior appearance with a price tag of $31,690.
This, compared to some of the higher-end SUVs, which range anywhere from $72,000 for the Porsche Macan Turbo to upwards of $100,000 for other luxury models. This is quite the price jump. Granted, there are some times when buying new, especially for luxury, will make sense. But according to some reports, there are a few luxury SUVs you should probably never buy new.
Buying new vs used luxury SUVs
There are certain things you should always buy new. Car seats, helmets, and swimsuits all come to mind. But then there are purchases that sit more in the gray area. For some buyers, you just can’t beat that new car smell — and it’s one that can’t be authentically replicated with an air freshener.
But buying new isn’t always the best idea. According to Carfax, the average new car will drop 10 percent in value within the first month. So when it comes down to buying luxury SUVs, a lot of the time it boils down to simple math. The Kia Telluride mentioned earlier will only lose about $3,200 in value while the Porsche Macan will lose more than double that amount.
The price comparison
Price depreciation is a big deal when it comes to resale value. But while it’s bad news if you are buying new, it’s (very) good news if you are buying used. Buying a used model can save you substantially when it comes to buying a luxury SUV.
This doesn’t mean you have to settle on quality. In fact, a recent study found that some luxury SUVs saw over a 40 percent price drop at just one year old. With selective shopping, you can find a used vehicle with low mileage and a pristine interior for almost half of what that same vehicle costs new.
There are many reasons for the big price drop. Most notably, manufacturers release newer models as new technology emerges. So if you’re okay with one-year-old technology, there really is no reason to buy new on these models (assuming the vehicle has never been in a wreck — always run a crash report before buying used). Other reasons include redesigns, market competition, and the simple fact that car manufacturers know that some people will always buy new.
The best luxury SUVs to buy used
There are some places where you will get a better deal than others; not all luxury SUVs will see a massive price drop. That being said, according to I See Cars, the BMW X6 dropped nearly $32,000 just one year off the lot. Another BMW, the BMW X2, also landed in the top 10 of SUVs you shouldn’t buy new, but it only saw a $13,000 drop.
Other vehicles of note include the Land Rover Range Rover Evoque which saw a price slash of $21,000 (37 percent) in just the first year, as well as the Alfa Romeo Stelvio whose 33 percent price cut saw the price drop $16,000.
Obviously, how good the deal is will depend on a lot of factors including the actual age of the car, the condition of the car, and the miles driven. It’s not a good deal if the car is in poor condition, regardless of the price. When you do your research and buy smart, you’re sure to see that there are many great deals to be had when it comes to buying a luxury SUV.