5 Luxury Cars Retirees Should Steer Clear of Before Christmas

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The Temptation of Year-End Deals

As the holiday season approaches, many consumers are lured by enticing year-end deals, particularly in the luxury car market. For retirees, the prospect of splurging on a dream vehicle can feel particularly appealing. However, before making such a significant purchase, it’s essential to consider a few key factors that may warrant waiting until after Christmas.

The Impact of Social Security COLA

One of the most significant reasons to hold off on purchasing a luxury car is the upcoming increase in Social Security benefits. In January, retirees will see a 2.5% increase due to the annual cost-of-living adjustment (COLA). This boost in income can provide retirees with additional financial flexibility, making it easier to manage the costs associated with owning a luxury vehicle, from insurance to maintenance.

Moreover, the holiday season often brings a flurry of year-end sales that extend into the new year. By waiting until after Christmas, retirees can take advantage of these sales while also benefiting from the increased cash flow that comes with the COLA adjustment.

Luxury Cars Worth Considering

If you’re contemplating a luxury vehicle purchase, here are some models to consider, along with reasons why waiting until after the holidays might be the best approach.

BMW 7 Series

• 2024 Model Starting Price: $97,395
• 2025 Model Starting Price: $97,575

The BMW 7 Series is renowned for its high-end features and cutting-edge technology. However, it also comes with premium maintenance costs. By postponing your purchase until the new year, you can better budget for these expenses, especially with the added income from the COLA increase. Additionally, waiting allows you to explore newer models or certified pre-owned options that may offer better value.

Range Rover

• 2024 Model Starting Price: $108,875
• 2025 Model Starting Price: $109,375

While the Range Rover exudes luxury and style, it is also notorious for reliability issues that can lead to costly repairs. By waiting until January, retirees can better manage potential maintenance costs with the extra income from the COLA. Furthermore, if off-road capabilities aren’t a priority, there may be more practical luxury SUVs available in early 2025 that offer a balance of style and reliability.

Mercedes-Benz S-Class

• 2024 Model Starting Price: $118,450
• 2025 Model Starting Price: $118,900

The Mercedes-Benz S-Class is synonymous with luxury, but it also comes with higher-than-average maintenance expenses. Delaying your purchase until after Christmas can help you avoid steep depreciation and allow you to explore other upscale models that may be more suited for long-term ownership.

Audi A8

• 2024 Model Starting Price: $91,995
• 2025 Model Starting Price: $93,295

The Audi A8 is known for its luxurious features but often suffers from steep depreciation. Waiting until after the holidays can provide retirees with more options as newer models are released and certified pre-owned vehicles become available, ensuring a better price without sacrificing quality.

Tesla Model S

• 2024 Model Starting Price: $74,990

The Tesla Model S is a cutting-edge vehicle, but its high-tech features can lead to costly maintenance as technology evolves. By waiting until 2025, retirees may find better options, and the COLA boost can help cover any future upgrades or repairs.

Making Informed Decisions

For retirees, purchasing a luxury car can be a rewarding way to celebrate the newfound freedom that comes with retirement. However, the frenzy of year-end sales can lead to impulsive decisions that may not align with long-term financial stability. With the COLA increase on the horizon, retirees can benefit from the added monthly income to comfortably manage the ongoing costs associated with luxury vehicles.

In conclusion, while the allure of year-end deals is strong, taking the time to evaluate your options and waiting until after Christmas can lead to more informed and financially sound decisions. Remember, it’s not just about the initial purchase price; it’s about the long-term costs and benefits associated with owning a luxury vehicle.

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