The sale and acceptance of used cars, especially those belonging to the luxury segment, have seen a resurgence of late. The used car market is also much more regulated than ever, thanks to increasing competition from online platforms.
Due to these changes, buying a used luxury car is also becoming more common as, at the same time, the frequency of buying new cars has increased. Many people are also considering buying used luxury cars from the National Capital Region (NCR), taking advantage of the 10-year rule for diesel cars and the 15-year rule for petrol cars imposed by the National Green Tribunal (NGT).
Many people are tempted by the attractive prices of used luxury cars from European brands such as Audi, Mercedes Benz, BMW, Jaguar Land Rover and Volvo. However, for most of them, the ownership experience after buying such used luxury cars is not as smooth and easy as the buying experience at mouthwatering prices. There are many factors to consider when buying a used luxury car to avoid bigger problems in later stages. Here are those:
It’s no surprise that the maintenance costs of a luxury car are significantly higher than that of a regular mass-market sedan or SUV. The consumables such as engine oil, air filter and oil filter, and regularly replaceable items such as battery and tires also cost a lot, which increases the monthly cost of the buyer. For example, the cost to maintain an Audi A3 is almost three to four times as much as a similarly sized Volkswagen Virtus or Honda City.
Cost of spare parts in the event of an accident
They say that a luxury car is the most enjoyable until an accident happens, and there are good reasons to prove it. If your used luxury car has major bodywork damage in an accident and parts such as headlights, taillights and bumpers break, they are very expensive to repair. This damage can dig a deeper hole in your pocket if your used luxury car isn’t covered by zero depreciation insurance.
Luxury cars get their power from bigger and more powerful engines, which use high-quality components for better performance. Such engines require higher fuel quality to run and often deliver lower than average fuel economy, an aspect most used car buyers look up to. The added cost of higher fuel quality and lower fuel consumption ultimately results in an increase in the cost of ownership, which is often gradual but painful.
Renew insurance costs
It is a common phenomenon that the more expensive the car is, the more expensive the insurance renewal costs will be. A full insurance renewal for a used luxury car depends on the depreciation value (IDV) of the vehicle, which sometimes exceeds the price you paid for the car in the used car market. In fact, many people take the silly risks of not updating insurance coverage, which can lead to much bigger problems if their vehicle has an accident.
Cost of re-registration
Due to the bans imposed by NGT for 10-year-old diesel cars and 15-year-old diesel cars, it is no longer possible to re-register such vehicles in the NCR. However, in other parts of the country where these cars can be re-registered, re-registration costs can be high for used luxury cars.