Main Street shoppers often start by shopping what they can afford in the moment, and Edmunds’ comparison—carried by the Associated Press—argues that this common path can obscure a practical alternative: for a similar price, some buyers may be able to move up from a new mainstream model to a used luxury vehicle instead. In the example Edmunds lays out, a shopper with about $35,000 targeting a 2026 Honda CR-V could instead consider a three-year-old BMW X3, though Edmunds says the “smart choice” depends on what matters most to the buyer.
On the question of condition and warranty, Edmunds frames the appeal of a new car around first ownership and a full warranty timeline. The comparison notes that new-car warranties typically cover the first three years under bumper-to-bumper coverage, plus an additional two years for the powertrain, and Edmunds also says luxury brands commonly offer a four-year bumper-to-bumper warranty and that dealers may sell used vehicles as certified pre-owned with an inspection and an extended warranty. Still, Edmunds says the decisive advantage for new cars is that buyers can expect the “freshest vehicle possible,” with no prior owner and the full new-car warranty protections.
Edmunds also breaks down style and performance. The story describes luxury cars as aspirational, with materials, design, wheels, and sportier handling that can make them more engaging to drive than non-luxury models. It points to a 2023 BMW X3 with up to 382 horsepower as an example of the kind of performance difference a buyer might feel, while also warning that higher performance can come at the cost of fuel efficiency; it contrasts an EPA-estimated 25 mpg combined maximum for the 2023 X3 with up to 40 mpg combined for a CR-V with an available hybrid powertrain. Edmunds adds that many luxury engines require premium fuel, which can raise ownership costs.
The features section emphasizes a different kind of tradeoff: while new cars generally bring the latest tech, Edmunds says some of the newest driver-assistance and infotainment elements debut first on luxury models before spreading into mainstream lineups. In the example pairing of a used BMW X3 and a new Honda CR-V, Edmunds says both can include wireless connectivity for Apple CarPlay and Android Auto, wireless phone charging, and adaptive cruise control. But it says the used luxury option can also provide additional upgrades—such as power-adjustable front seats, ventilated front seats, a premium 16-speaker audio system, and a head-up display—that Edmunds says Honda does not offer on the CR-V.
On maintenance and long-term costs, Edmunds says buying new generally brings predictable early-year convenience, often limited to routine service like oil changes and tire rotations, with repairs covered if they fall within the warranty. It contrasts that with what it calls a higher-maintenance reality for used luxury vehicles, citing components such as brakes and fluids and noting that parts and labor are more expensive for luxury brands. Edmunds estimates that a BMW X3 will cost about twice as much to maintain on average as a Honda CR-V.
The comparison also points to depreciation timing. Edmunds says buying new often means taking on the steepest depreciation in the early ownership window; when a new vehicle is sold after three years, Edmunds says it is common for it to be worth only 60% to 80% of its original value. Edmunds adds that depreciation typically slows after those initial three years, but it still concludes that, even after depreciation differences, a used luxury car is likely to cost more each year to own and operate.
Edmunds summarizes its overall guidance by saying buying a new vehicle is the “sensible choice,” because it provides the full warranty term and ensures no prior driver. The story also acknowledges that car buying is driven by emotion as much as logic, and it says that if the appeal is “fine leather” and a powerful engine, Edmunds frames a used luxury purchase as a viable option. The Associated Press story credits Dan Frio as an Edmunds contributor.
This article is based on a story provided to The Associated Press by the automotive website Edmunds. The contributor named in the source material is Dan Frio.