Luxury Does Have Advantages

Right now it's cool to be frugal. With so much financial uncertainty, cutting expenses and saving money are important. But if you've got the financial means to purchase a luxury vehicle, there are distinct advantages for the driver. So although it's hip to be economical, there is no shame in buying a fancy car if it fits into your budget.

The biggest danger with a luxury car is buying or leasing one when you can't really afford it. Some people are desperate for the status symbol that a car can be. But it makes no sense to try to get into a fancy car when you aren't in a financial position to do it.

If the car you're buying or leasing is for a business, be aware that the U.S. tax rules have limits in place that prevent fully deducting the cost of owning and operating a luxury vehicle. These deduction limits mean that part of the cost of a luxury vehicle won't be tax deductible, no matter who pays for the car.

If you're lucky enough to be able to afford a high-end car, you're going to have a lot of choices. There are plenty of body types to choose from, and even more available gadgets to outfit your new ride. What might be an optional upgrade on a typical vehicle is often standard fare on a luxury auto.

And the upgrades on a fancy car? Even fancier. We're not just talking a better sound system or power everything (including seats with memory). Now you've got choices like, built-in GPS, seat warmers (and coolers), sensors for everything under the sun, and an ever growing list of gadgets. Let's face it. These toys are fun, and purchasing a luxury auto opens the door to better gadgets.

Plan on being treated well by the dealership and associated repair shop. Many brands offer free loaner vehicles while yours is being serviced or repaired. The loaners are usually of a higher caliber as well, so you don't have to worry about being stuffed into a tiny economy vehicle while yours is being repaired.

Are you really getting a significantly better car when you buy luxury? That's debatable. There are many who say that a luxury car is no different in its core than other more economical cars. But there are probably equally as many who would argue that there is greater care put into making a luxury car, and the guts of the car are superior to cheaper counterparts.

At the end of the day, I suspect most buyers of luxury cars aren't doing it because they feel they're getting a much safer or functionally superior car. I’m pretty sure it boils down to having a status symbol that says something about the buyer. And that's not necessarily a bad thing.

In some lines of business, image is everything, and a luxury vehicle goes a long way toward projecting an image of success. Business owners shouldn’t feel sheepish about wanting to show of their success a little, and clients often understand that the business world is tough and a nice car is a small reward for lots of hard work.

For some, purchasing that first luxury car represents the fulfillment of a dream. I imagine many kids dream of someday owning an expensive car and being the envy of others because of it. Making a dream come true for yourself is likely a common reason for buying luxury over other decent, but relatively cheaper cars.

Whatever the reason, luxury cars do have a lot to offer in terms of options and upgrades, and they can be a lot of fun to drive. Our appearance says a lot about who we are, and someone who wants to project an image of success and wealth should not feel bad about it.

If you're in a position to buy an expensive car, that's a great thing. Enjoy your prosperity, spend wisely, and look fabulous in that luxury automobile.