Next up, we have a question from Kyle M, and I'm wondering if he's poking the bear a little bit. Wondering if it's going to be like a hot take for you. We'll see. I wonder which one of us is the bear. It's an interesting question; we probably are divided on the answer. So, it's about buying a car. It says, "Does one year same as cash, your rule about luxury vehicles, apply to used luxury vehicles?"
If you are—this is my opinion—write this in pencil if you're taking notes. If you're buying a luxury vehicle, if you're gonna buy a Mercedes or a BMW or a fill in an Audi, fill in the blank, whatever, I would really consider looking used anyways. Right? Because we know we're gonna disagree. This is a hot day. Yes. The problem with luxury vehicles is how much they depreciate in those first few years. So, if you can find a two or three-year-old luxury vehicle, still has all the safety features, all the upgrades, all the things that you want in the vehicle, but you're not paying that top-tier premium price, I would argue that that's the best time or a better time to buy a luxury brand. But if you're doing that, you still gotta pay cash. You still have to pay for it or pay it off in one year. If you cannot afford to do that, I'd argue you cannot afford the luxury brand, even though you're buying it used.
Fight me. I'm not gonna fight you. I'm gonna be like the wise old soul that's made mistakes, and now I want to help you not make the same mistake. Okay. I own a luxury car. It's not mine; it's my wife's. Um, and she likes this car, but I gotta tell you guys, has anybody ever asked the question, "Why do luxury cars depreciate so much?" Why is it because they were just expensive to go with, and now they just drop like a rock? No. I'm telling you, there is a "why" behind luxury vehicles. It's because all of you out there driving your Toyotas and your Hondas and then you decide, "I'm gonna upgrade to an Acura or a Lexus." I'm not talking to you, by the way. You keep on living your luxury life because that's the life I came from, and I love it. There's a reason a lot of successful people drive the Acuras and the Lexuses because when you go get an oil change on those, they're gonna be more expensive, probably because they gave you a courtesy car or something like that. So, you get a more luxury experience. But when you start buying some of these German vehicles and European vehicles, when you go get an oil change, you're gonna think they kicked you in the gut. Oh, you're gonna be like, "What?" Oh, yeah. And then let me go and tell you, when you go to buy tires, you go to costco.com and you go, "Let me go schedule out when I'm gonna get my tires replaced." Like, "Oh, wait a minute. When you type in your vehicle, the manufacturer, and the model, they don't make tires for your vehicle because this is such a scam." Is that the auto manufacturers, these luxury companies go to these tire manufacturers like Pirelli, and they will make a tire specifically in some oddball size for that vehicle, and then the only place you can get replacement tires is from the dealership, or you can go to some of these specialty places. But the tires, you're gonna be like, "Wait a minute. Each tire is like what I used to pay for a Honda Accord, and all four balance?" You're like, "What?" And then, wait, it doesn't stop there. It doesn't stop there. The tires, the tires that you buy for this car that you're paying five, six hundred dollars per tire only last twenty thousand miles. It has none of the luxury tires have warranties like I'm used to. I'm used to my Lexus when I had the ES350 that I drove for like twelve, thirteen years. When you go and put the Michelins on it from Costco, they have a forty-five thousand mile warranty.
So, you're like, "Man, I'm putting these tires on; they're gonna be a lot of life that's gonna happen." You put tires on my wife's car, and you might make it through a season or two, and you're like, "Holy cow, I gotta replace tires again." I mean, because they'll tell you. It's all over the asterisks. Like, if you even go to Discount Tire, it'll say there's no tread warranty on any of these tires. And these I just mentioned oil changes. Now, let's talk about my wife's brakes went out within thirty thousand miles. I've never had a car where the brakes went out in thirty thousand miles, and you try to go, and I was like, "I'm not paying this horrible manufacturer and their dealerships this type of money to buy to replace these brakes." So, I go to a third-party repair place, and they go, "Mr. Preston, I'm so sorry to tell you this. The only place that we can buy brake pads for that vehicle is from the manufacturer." So, I buy the freaking brake pads from the manufacturer. I'm just telling these cars are horrendous. You do not want to own a luxury vehicle because the maintenance alone will eat you alive. And my wife, so here's the thing. I'm just going to give y'all a confession. Thank God she doesn't watch this. I have tried to convince her because her car's starting to show some age, and the repair costs are just running rampant, and I'm like, "Honey, I'm gonna break all the things because she's already picking—trying to figure out what she's doing," and I was like, "Look, you know, I had a Model 3 Tesla. I have a Model Y Tesla. I was like, honey, if you want to keep it nice, I'm even willing to concede, and I'll let you do the Model X if we can just get the heck away from these European brands where they hose you to death on the transaction. It's a disaster, Kyle. So, I mean, so where do we disagree? Well, I think because you were saying I think people should avoid used luxury cars. I'll be honest with you all, right? I'm willing to say maybe I don't agree with you; it's just I think about I have this neighbor back when I lived in Georgia. I remember he was so proud. He pulled home in that Maserati, and um, you know, there's so many fun things I think of on Maserati, some great songs in the past and so forth. But I know maintenance 80 will have on that thing. I mean, it just fall apart because I think a lot of people you Daydream, you listen to this that my Maserati does 185. I want to own a Maserati, but then you find out, I mean, so you like I can't afford a real Maserati, so you go buy a Maserati that's five years old, and then that thing is a bomb on your finances. Just be prepared. It's going to blow up your finances because you go, even if you can afford the payment, even you can afford it because I didn't got into the insurance on these cars either because I'm sure their insurance cost is outrageous. I pay all this price on insurance because I'm sure the only place you can buy body panels and parts is once again from the manufacturer. It's a complete snow job and a scam. Don't fall into the trap. Don't be Brian. Okay, let me let me let me bring all this back in just a little. I'm sorry, because look, I ran it for seven minutes. This is how much this locks me off. So we agree luxury cars maybe or not a disaster, valuable thing that you can buy. However, to answer poor Kyle's question, who did not know that he was wading into these waters. I think maybe he did. Yeah, if you're going to buy a luxury brand, if you're going to buy a luxury brand, my recommendation is look to one that is used because you'll get a, all the things he said are true. The time all of it's true. So if you're going to get hosed in all those areas, maybe on your purchase price, you get a little reprieve. So, look for a model that's a few years old. If you must buy luxury, and you have to pay it off inside of the first year, if that's what you want to do with your dollars, go buy you Alexis or an Acura; you'll be happier. Don't buy European vehicle. We can't give specific advice. My experience, those European models, you might look cool in it, but Lord help you on how much those things go. And I have a buddy; he only bars, like those Audi S models and stuff, and I'm like, I guess I guess he just likes setting money. I got clients like that too. Oh, yeah, there's some people who car people; some people like—you know, some people like right every time I go to the dealership, I just think they probably think I'm the kookiest person in the world because I'm always like, "Are you really charging, y'all don't feel guilty for charging people this?" You ask them? Yes, I do because I get mad. I'm literally mad that these and they all are scam jobs, so one time, the one time I paid $270 for a cabin air filter. For a cabin air filter! I Googled how much it actually costed; that was when I, that was what I have, but that's just an oil change scam. You because I just replaced my daughter's air filter for twelve dollars, got this Bosh, you know, HEPA-style things; like 13. So anyways, I asked the point, the point being I asked I asked the, I don't know. I'm just doing my job. For more information, check out our free resources