Owning A Luxury Car Doesn't Mean Burying Yourself In Debt

Luxury cars epitomize success, a trophy that we can both display and enjoy to prove we've made it in life. But, while everyone dreams of owning a super-luxury SUV like the Lamborghini Urus, there are more affordable ways to invest in luxury car ownership. It's not always about ownership either - you can appear to have made it, all while making sound financial decisions, avoiding debt and reducing current debts by making a few important decisions.

Many equate the purchase of a luxury car to being irresponsible financially, and with this in mind, there are various ways to ensure you get value for your money and as close to the premium status you want, without getting indebted. While the Lambo Urus is known for its exceptionally plush cabin, feature-laden interior, and upper-class status, there are other SUVs to consider that offer top-notch interiors, exceptional ride and handling, and good performance, without the need to remortgage your home.

There are a number of capable vehicles on the market that can match the Urus in terms of practicality, and even a few that come close to matching its performance, such as the 591-horsepower Audi RS Q8. Still, the RS Q8 has a starting MSRP in the region of $120,000, which is also a hefty sum of money. Brands such as Mazda and Volvo offer superb SUV options for up to $160,000 less than what a Urus would cost you, and are impressive in their own right. Both the Mazda CX-5 and Volvo's compact crossover, the XC60, are worthy of consideration, even in base model configurations. When trying to prevent, or clear debt, some clever shopping for the right type of luxury car is essential.

Over the last few years, auto loans for new car purchases in the USA have increased substantially, with the average interest rate paid for such loans growing too. Bigger loan amounts and lengthier terms mean you are paying a lot more at the end of the day and driving your new car for a long time before your loan is paid up. Here are some strategies for helping you steer clear, or at least mitigate, your debt:

Homework: Always keep an eye open for incentives offered, as well as cash-back deals or zero-percent interest loan offerings, while the latter can be applied for easily if you have an excellent credit record. Remember to aim within your budget, too.

Go in prepared: Don't limit yourself to options from only one dealership - shop around, and make sure to apply to your bank or credit union too, if only as a point of leverage for chasing a better bargain. Search out the lowest interest rate and, if you can, opt for a quicker repayment plan. A sizeable deposit will also help to keep the amount financed low, meaning smaller monthly outlays.

Second-hand cars are just as good: Used vehicles are often less expensive and for a much lower monthly repayment, you could still own a reliable, high-quality car. Be sure to test-drive a variety of models for comparison, so you have an idea of what you really need before just settling on what you want.

Choosing to lease instead of buying generally equates to lower monthly premiums, meaning you could still drive a luxury SUV for just a few hundred dollars per month. While the advantages of this arrangement means you get the status of having your dream car parked in the driveway with no debt to your name, and no worries about resale value, it also implies strict mileage limits and not having the equity at the end of the payment term in the form of a vehicle owned. Still, if avoiding debt is your goal, this is an excellent way to go.

Be sure to do your research when looking for cars that will offer a good return on your investment. All information used here is sourced from CarBuzz news, where comprehensive reviews will help you make the right decision.