At one point or another, everybody has wished they were in the driver’s seat of a leather-bound luxury vehicle. It’s human nature. But we’re not always in a financial position to buy the car of our dreams. Let’s think outside of the box, though. Maybe the car of your dreams isn’t the one in the commercial you saw today. Maybe it’s the one you saw in the commercial a few years ago. Now it has 30,000 miles on it, still sparkles, and it’s going for 30% off it’s original invoice price.

That doesn’t sound like a bad deal, does it? 30% off of a luxury car invoice price can mean tens of thousands of dollars. The higher the MSRP, the bigger the discount is likely to be when it’s used. This is due to depreciation and the low invoice price dealers generally get on trade-ins.

Depreciation is nothing but market value, in many cases. Sometimes it has nothing to do with the miles the car can still go or the remaining life expectancy of the window motor. In other words, the car should be worth more than it’s being sold for but nobody’s looking for it. The car has depreciated for no apparent reason and now the dealer has purchased it for a low invoice price.

Let’s take an Audi A6 3.0T as an example. A used one with 50,000 miles might go for around $47,000. That’s nearly $10,000 dollars off the MSRP, which was around $57,000. It’s approximately 18% off. Find a car with a higher MSRP and that “discount” percentage will likely be higher. Sometimes much higher. Plus, many cars you’ll find will be certified pre-owned.

When you buy a used or certified pre-owned luxury car, you’re essentially avoiding the most rapid period of depreciation on the vehicle. That depreciation will occur more slowly now that your car is used. The original invoice price of the car was high because the manufacturer knew it could be sold for a high price. Now it’s slightly used and you can get a great deal on it. Most of us won’t even know it’s not new.

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