Luxury cars are expensive to buy and maintain. Plus, their relatively quick depreciation rate also means that some are likely to view them as poor investments. That said, some luxury cars come with specific positive attributes that others do not possess, such as exclusivity. Contrary to popular belief, some luxury cars hold their value well, providing owners with a decent resale value, and some even sell for more than their original value.
Features that make luxury cars good investments
Innovative technology
Luxury cars are highly technologically advanced, which improves their utility and, by extension, their value. Some popular features include in-car Wi-Fi, ambient lighting, heated and massaging seats, built-in refrigerators, and multi-zone climate control. Besides that, the cars are equipped with innovations like AI-powered infotainment systems, automatic headlights, night vision cameras, and wireless charging functionality, which are practical and beneficial for the car’s occupants.
Some convenience-driven features, such as remote car parking, gesture controls, and smart home connectivity—for instance, in-car commands to turn the lights on or off at home—are exclusively available on luxury cars and increase their resale value.
Advanced safety equipment
The best luxury cars to buy as investments are the ones that guarantee that occupants will not be harmed or injured in case of collisions. Luxury vehicles go the extra mile to ensure passenger safety by including preemptive safety features, such as automatic braking and smart seatbelts that stiffen up if the vehicle senses an accident is about to occur. Such rare and valuable safety features make these vehicles highly reliable for a long time.
A vehicle’s safety credentials help maintain its investment value for many years and drive up its price in the pre-owned car market for prospective buyers.
Brand name
The name and prestige attached to marques such as Bentley, Ferrari, Porsche, or Rolls Royce automatically make their vehicles a worthy investment for buyers. Many individuals aspire to be seen driving or being chauffeured in luxury cars by these renowned manufacturers. As such, cars are just as big a status symbol as transportation machines; their investment value progressively rises with time. Owners of such vehicles enjoy good investment returns even several years after purchasing luxury vehicles.
Luxury cars with the best resale value
The resale value of any vehicle is a useful indicator of how good or poor its return on investment will be. The higher a car’s five-year or ten-year residual value, the better investment it is considered.
Lexus ES350
Most premium Lexus vehicles are known for their reliability and performance in the pre-owned vehicle market. For instance, the Lexus ES350 has a remarkable 5-year residual value of 73%, which means that after five years of ownership, the car retains 73% of its original manufacturer’s suggested retail price. So, as expected, the ES350 ranks among the best luxury cars for resale value.
The ES350 has a powerful 3.5-liter naturally aspirated V6 engine with an impressive 302 horsepower. This engine comes with an eight-speed automatic transmission, ensuring smooth performance. Even after years of extensive use, this powerful engine operates efficiently and provides decent fuel mileage.
Because of these factors, the Lexus ES350 is one of the best investment-worthy luxury cars in the market.
Acura RDX
This luxury compact SUV comes with a solid 5-year residual value of 67% and is priced in the range of $40,000 to $50,000. It combines practicality and luxury in a sporty package. The main value proposition of the RDX is its powerful engine: its 2.0-liter turbocharged 4-cylinder powertrain produces 272 horsepower and accelerates from 0 to 60 mph in about 6.2 seconds. This powerful engine is mated to a 10-speed automatic gearbox that is responsive and seamless. It is just as easy and slick to drive in urban scenarios as in rocky and ungainly terrain. Additionally, the all-wheel drive system of this mid-size Acura SUV provides excellent all-weather driving capability. Acura’s reliable after-sales service record is another reason this vehicle has a high resale value.
BMW 3-series
This car comes with a solid 63% 5-year residual value. The 3 Series has been one of the most sought-after vehicles in its segment for decades. Factors such as the BMW brand name, smooth engine, and loads of features contribute to the high resale value of this vehicle. The base model, the BMW 330i, is priced between $40,000 and $50,000 and produces 255 horsepower with its turbocharged four-cylinder engine. In contrast, the M340i and M3 versions generate 382 and 473 horsepower, respectively. The engines and performance raise the monetary value of the 3 Series several years after its purchase.
Infiniti QX50
Market analysis indicates that the Infiniti QX50 is expected to depreciate approximately 49% after five years of usage. Its 5-year resale value is likely to range from $25,000 to $30,000. This luxury vehicle is known for its immaculately designed interior and a wide array of features, including an Antilock Braking System (ABS), multiple airbags, multi-zone climate control, a premium stereo system, a sunroof, adjustable seats, and steering column, a multifunctional steering wheel, stability control, and traction control.
Some other top luxury cars for investment are Porsche 911 and Audi S6.