Used luxury cars under $20,000

If you are shopping for used cars on a budget, but still desire the smooth ride of a luxury car, you are not out of luck. Certain used luxury cars that were made in the 2000s are available in good condition for less than $18,000. Popular Mechanics recently compiled a list of some of these cars, providing a good resource for people who want affordable luxury cars.

Motorists who have always dreamed of owning a BMW can check out the 2002 745i. The sedan has a powerful V8 engine that gets 333 horsepower. The best part of this car is that the true market value of this model is roughly $13,400. When it first came out, Edmunds.com called it the “most technologically advanced passenger car in the world.”

Popular Mechanics chose this car because it still resembles the newer versions, as 2002 was the year that the German automaker reinvented the design of the 7-Series cars. The original cost was $67,850, but now you can get the car for nearly one fifth of the new price.

A 2001 Audi S8 in excellent condition can sell for $18,000, which is impressive for a car with a V8 engine capable of producing up to 360 horsepower. Car Spot states that a 2001 Audi A8 is sold for under $10,000, and a 2006 model that was originally priced at $80,000 resold for $26,000. Chances are you could find a used A8 older than a 2006 model for under $20,000.

Don’t let the low prices mislead you however. The A8 has such a reasonable price tag because the repairs are expensive. This is often the case with luxury cars, as their parts are often pricey, so when things go wrong the bills can add up. If you’re a gear head and have no problem doing repairs yourself to save money, then the choice is yours. Regardless, you should be wary of low prices and do your research before you buy a car with a bad credit car loan.

Keep in mind that for the same price, there are plenty of new options available from most major car brands. Subcompact cars, such as the Fiat 500 and the Smartcar, are sold for under $20,000, as are plenty of other cars. A manual transmission, two-door Hyundai Accent sells for just under $11,000 new, making it the cheapest new car on the market, according to Kiplinger.