The Perks of Riding Economy

Everyone loves a luxury car. They are sleek, stylish, and have interiors that make you feel as though you are staying in a five-star resort. However, there are a few drawbacks to owning a luxury car. In fact, there are a few that are severe enough that you may wind up reaching for the keys of a Toyota over an Infiniti.

Easier Resale

Most economy cars have better gas mileage and less expensive maintenance than luxury cars making them more appealing than luxury cars. No one wants to have to pay $200 for an extra set of keys or over $800 for a new outfit of tires for that luxury car. Used car buyers are highly aware of additional costs that may come with a used car, and are more likely to purchase one with relatively inexpensive upkeep – not to mention one with better fuel economy.

Quicker to Pay Off

This is a no brainer. Economy cars are less expensive than luxury cars and are generally less expensive to maintain allowing the vehicle purchaser to pay off their car loan more quickly. Instead of worrying about paying off a $50,000 car in 5 years, economy car buyers can pay a $15,000 car off at the same rate in a year and a half.

Better Refinancing Options

It’s no new fact, that cars depreciate dramatically immediately upon being driven off the lot. If you find yourself wanting to get an with your luxury car, you may be appalled. Luxuries cars have higher prices and depreciate more so than an economy car. Because of this you are often left with an amount owed on the car much higher than what it is worth – so much so that you may not even qualify for a refinance.

Higher Resale Value

An economy car purchased new at $25,000 can generally be resold for $16,000 depending on the state of the vehicle. A luxury car purchase for $45,000 can generally only be resold for $18,000 to $20,000 depending on the state of the vehicle. That is a huge price difference. Economy cars have a resale value of nearly 20 percent higher than that of luxury cars.

There is nothing like the feel of a luxury car, but sometimes you just have to be more practical when purchasing a car – especially with the state of the economy. Just because a car is deemed “economy” doesn’t mean that you still can’t enjoy a great sound system, a smooth ride, and fast engine. It just means having to sit on cloth instead of leather and missing out of real wood inlays – things that may not just be worth the extra $25,000 you would normally pay.

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