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Why are five year old premium cars so cheap?

I notice used prices of 5 year old premium models like Mercedes E-Class, Audi A6 and BMW 5 Series are within reach of my budget. Even official dealers are selling them for £15k to £20k approved used. Why are they so cheap or am I missing something?

Asked on 31 January 2025 by straker

Answered by David Ross
As a general rule, the depreciation on luxury cars is high, with many losing 50% of their value within the first three years or so. Maintenance bills also tend to be higher on luxury cars, and so many of them will enter the used market after three or four years once the initial finance or lease period is completed, all of which means that they are relative bargains at this age, as long as you can afford the running costs.
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