Buying a Used Car from a Dealer vs. Buying a Used Luxury Car from a Vehicle Pawn Shop
One thing many people may not realize is that the cost of a “vanilla” used car from a car dealer can be much more than the cost of a used luxury car from our vehicle pawn shop. You may be wondering how this could be?
The reason luxury vehicles end up being a better buy is because they tend to take a much higher hit of depreciation compared to your “Plain Jane” car. For instance, the cost of a high-end luxury vehicle could easily be $50,000 or more brand new. Compare this to the cost of a $20,000 basic vehicle.
If the luxury vehicle depreciated 40% the moment it was driven home new, the luxury vehicle would now be worth $30,000. On the other hand, if the basic vehicle only depreciated 20%, it would still be worth $16,000. Assuming depreciation continues at the same rate for the next three years, the luxury vehicle would be worth $6,480 compared to $8,192 for the basic car.
Please keep in mind, this is just an example to show why luxury cars depreciate faster and often end up being worth less after a few years. For used car buyers who want all the bells and whistles in their vehicle, you can see why buying a used luxury car can be a better deal than your basic car.
Another reason our luxury used vehicles tend to cost less is that the markup on them is very minimal. In some cases we are selling the vehicle for the amount we lent someone for their pawn loan.
To check out our latest inventories of used luxury vehicles, SUVs, and crossover models in stock, please feel free to stop by your nearest Massa Auto Pawn & Sales location in Colorado or call us at 720.598.0081. We offer on-the-spot financing with our Buy Here Pay Here Program, so you can drive your new used luxury vehicle home today!