Thinking of buying an older model used luxury vehicle.

[Davids]

My current car is 12 years old and I am probably too old for it now. I am looking to replace my car. Has anyone bought an older model used higher end car. How has the cost to maintain it. I am currently looking at a listing for a 2004 Volvo XC 90 with 125000 miles on it for $3500. Seems like no issues from carfax report. It has had multiple owners. If I were interested I would have someone on at it first to see what issues it has. I average driving 7000 miles per year now.

[HipGnosis]

I'm a firm believer in buying older luxury cars.
I'm on my second Volvo, and the car before that was an Acura.  All were bought with close to 100K miles.

You don't say what engine or what condition the XC90 is, so I can't tell you if that's a good price.
The 2.5 is what's in my current car (C70). 
If you don't have concrete proof that the timing belt has been changed, you absolutely must have it changed ASAP - it can destroy the engine.  I don't know if this is the same with the V6.
I luv the engine with the turbo.  Impressive performance when ever I want it and 35 mpg on the highway.  Volvo has been using turbos for years and they do it very well.  The turbo doesn't 'kick in', the engine just makes more power at higher RPM.

I researched the reliability (ie maintenance costs) of Volvo turbos before I bought my first one - a 'european car' service shop owner told me he never replaced one from 'normal' use/wear.

I haven't had any maintenance costs that weren't typical of high mile cars.   I do my own maintenance and log everything on the computer.  I haven't had to to get any parts from the Volvo dealer - I use the local parts stores and RockAuto(.com).

I did have a maintenance issue though - The engine started making a weird sound and the check engine light came on once in a while.  An internet search told me it was the PVC and that it is under the intake manifold.  It also told me that it was a known issue and Volvo had extended the warranty for it.  Yep, the Volvo dealer replaced it for free.  The car was 8 yrs old and had 80K.

My next car will not be a luxury (or entry-luxury).  Everything I want is on 'standard' cars now.  I've driven a Buick Regal and a Ford Fusion.  They've got more buttons and menus than I want.
 

[ketchup]

I drive a 2001 Volvo V70 (2.4T).  Volvos are good cars; just be sure to research any known issues with any model you're pursuing.  I knew what I was getting into with mine (infamous ETM flaw).  The only major issue I've had was that flaw I went in knowing about, everything else has been normal maintenance plus one bad ignition coil.

[Davids]

It is a 2.5T with AWD. Thanks for note on timing belt hipgnosis. Looks like good condition but can't always tell just looking at pics. Definitely an idea I am thinking for now.

[FiftyIsTheNewTwenty]

I don't know much about modern Volvos, but the old ones were certainly long-lived.

I've had great luck with BMW 3-Series, putting over 350k on two of them that I started with over 100k.  I did most of my own wrenching; but if I hadn't, they still would have been relatively low-cost, on par with "economy" cars.

Most modern cars will last a long time mechanically.  300k is the new 100k.  It's the cosmetic stuff -- paint, upholstery, dashboard, etc. -- that deteriorates with cheaper cars, so people won't spend to maintain them anymore.  Then they fall apart, or blow up and die.

[inline five]

The problem with Volvos, especially the SUV, and other luxury cars is the cost of parts. With luxury cars their OEM and brand name parts are quite expensive. You can save money buying the cheapie stuff but there is a reason it's so cheap.

I spent $1500 in parts on a suspension and steering rebuild on my Volvo, rough estimate for a Camry or something similar you're talking at least $500 less.

But, the car drives a lot nicer than a Camry and even being 20+ years old still rides and drives wonderfully. The quality level is definitely there.

If I were you I would buy a Lexus or Acura as they are copies of their lesser brand chassis. Their resale is quite high but for a reason.

[rothwem]

In general, I like this approach, but I don't think its for everyone.  If you:

-expect to not have to spend any money on the car at all,
-are afraid to work on a car,
-are financing/can't afford to purchase in cash,
-don't actually care how the car drives, but you want to be seen in a luxury vehicle,

you probably shouldn't take this approach.  Older luxury cars trade more frequent service intervals for a nicer drive. The purchase price is generally lower to reflect that, which I think makes it a good value if you're handy.  One of the most common things that fails in luxury cars are bushings--they're generally made from soft gooey rubber (or sometimes oil filled) so that noise and vibration aren't transmitted to the cabin.  They're going to wear out faster than the hockey puck bushings on a Honda Civic though. 

[jleo]

Being in this business I can tell you this is not smart, I avoid these cars when buying as I know they are very costly to fix. This is also why they are so cheap, the last Volvo I bought was $500 and book value was about $2500 the owner literally was about to pay me I think to get it off there hands it felt like. I have probably put 2500 into it, it is always in the shop. Just my 2 cents, I buy Camrys and Civics and they run forever.

[jeninco]

We're fans of this approach: we typically aim for a <10-year old entry-ish level vehicle from a "luxury" brand.  Our mechanic (who is also an old friend) is an Audi aficionado, and that's what we enjoy driving, so he does the pre-purchase inspection and we're off to the races (er, so to speak). I prefer smaller cars, so the most recent purchase was an Audi A3 (manual, baby), to replace a 1995 Audi 90 Quattro.

We don't drive much (typically < 6000 miles/year, including a few long road trips, two kids in club soccer, and a handful of ski patrol days that involve >150 miles of driving), so we generally don't rack up too much in operating expenses, and it's nice to have the ride be sweet when we do have to drive.  We budget for around $2K in vehicle work per year, so it's probably a wash between this strategy and buying a newer less-luxury model car, except that we get to drive a nicer car in between.  Older also means lower insurance rates... Downside is I need to keep taking the keys away from the 16-year old (6-speed with a turbo = MY midlife crisis car, kid. Ride yer bike!)

[Dave1442397]

I kept track of used Lexus LS 460 prices in my area for over a year while gambling on my old car's staying power. I saw a one-owner 2011 LS 460 with 51k miles show up at a local Lexus dealer, where it had been serviced every 5,000 miles. It had new tires and brakes, so I went for a test drive and bought it two weeks ago. With the amount of miles I do per year, this car could last me 20 years.

As with any car, some model years had certain issues best avoided, and I also stayed away from the air suspension, which is expensive to fix and pretty much guaranteed to fail at some point.

I have to say that the car is amazing. I've driven all sorts of cars over the years, from rusty clunkers to sporty convertibles, but I really wanted a nice highway cruiser, and this one is perfect for that.

[SC93]

I know it's a little over the line for people on here but I keep debating to buy an old, old Rolls-Royce or not. The only reason I haven't is because I know I'd never drive it. I had a Maserati and never drove it. I got rid of it because they wanted $800 to change the oil.... and some places wanted double that! So be careful when you get that 'dream' car it doesn't turn in to a nightmare!

[sequoia]

In general, I like this approach, but I don't think its for everyone.  If you:

-expect to not have to spend any money on the car at all,
-are afraid to work on a car,
-are financing/can't afford to purchase in cash,
-don't actually care how the car drives, but you want to be seen in a luxury vehicle,

you probably shouldn't take this approach.  Older luxury cars trade more frequent service intervals for a nicer drive. The purchase price is generally lower to reflect that, which I think makes it a good value if you're handy.

I agree with mostly ^.

Older luxury cars trade more frequent service intervals for a nicer drive - not necessarily true, but I never buy Volvo before. I only have Toyota and Lexus, and from my experience, they do not need more frequent service intervals. I do my own maintenance, and enjoy doing it, so the saving is significant.

I laugh when I see someone drives a brand new civic that cost 3x than my older Lexus convertible, and that person look at me with envy :)

[soccerluvof4]

In general, I like this approach, but I don't think its for everyone.  If you:

-expect to not have to spend any money on the car at all,
-are afraid to work on a car,
-are financing/can't afford to purchase in cash,
-don't actually care how the car drives, but you want to be seen in a luxury vehicle,

you probably shouldn't take this approach.  Older luxury cars trade more frequent service intervals for a nicer drive. The purchase price is generally lower to reflect that, which I think makes it a good value if you're handy.

I agree with mostly ^.

Older luxury cars trade more frequent service intervals for a nicer drive - not necessarily true, but I never buy Volvo before. I only have Toyota and Lexus, and from my experience, they do not need more frequent service intervals. I do my own maintenance, and enjoy doing it, so the saving is significant.

I laugh when I see someone drives a brand new civic that cost 3x than my older Lexus convertible, and that person look at me with envy :)

Totally! Cars are 3x's as much and are not worth 1.5 xs as much. I try to buy Toyotas with low miles and keep them as long as I can. At least then too I know the maintenance is being done. I do sometimes see myself back in a BMW or something but that itch goes away pretty quick as I can do basic stuff but it quickly ends there.

[nath]

I have owned heaps of luxury cars over the years, usually run them for 2 or 3years and then sell it for a newer model. To buy second hand it can make sense but It depends how old you are talking.  The cheap Volvo seems like a potential money pit, and it could work out much cheaper to purchase something much more expensive initially but that needs a lot less maintenance to keep it going.

10+ year old anything is potentially going to cause trouble unless you have owned it since new and know the history, or it’s a Japanese make like Lexus they are the most reliable by far.

[sequoia]

I have owned heaps of luxury cars over the years, usually run them for 2 or 3years and then sell it for a newer model. To buy second hand it can make sense but It depends how old you are talking.  The cheap Volvo seems like a potential money pit, and it could work out much cheaper to purchase something much more expensive initially but that needs a lot less maintenance to keep it going.

10+ year old anything is potentially going to cause trouble unless you have owned it since new and know the history, or it’s a Japanese make like Lexus they are the most reliable by far.

No car is perfect but I do agree with @nath

I do not have any data to back this up, so purely personal opinion here, reliability wise, Japanese car is the best you can get. Even better, if you can buy Japanese made cars that are "Made in Japan" as oppose to Toyota/Lexus/Acura/Infinity etc but made in US or somewhere else.

My current car is 12 years old and I am probably too old for it now. I am looking to replace my car. Has anyone bought an older model used higher end car. How has the cost to maintain it. I am currently looking at a listing for a 2004 Volvo XC 90 with 125000 miles on it for $3500. Seems like no issues from carfax report. It has had multiple owners. If I were interested I would have someone on at it first to see what issues it has. I average driving 7000 miles per year now.

Back to the topic at hand, how many previous owner? What is the timeframe? Is it like one person own it for a year, then another person for a year or less, then another person own it, etc? Asking because it is possible that car may have problems that new owner just find out after owning it, and then sell it quickly. Just something to consider.

[abner]

I once had a boss who was always looking for early to mid 90's BMW 7 series (top of the line). He owned 3 at the time I worked for him in 2011. I asked once what the deal was. His reasoning and experience was that since they were so expensive new that most of them were bought by retired people who drove them to church and the golf club. So very little miles. After 10-15 years they would trade them in for a newer model to last them until their death. Therefore the car was lower mileage, dealer maintained, and not driven hard.
It made since to me anyway.

[Davids]

Update: I am now looking at a 2004 S60 R AWD vehicle that has a little over 100,000 miles and the timing belt was recently replaced for under $4K. Unfortunately the dealership is a bit of a hike from me (over 50 miles) but we will see...

[KBecks]

You really have to drive and inspect each used car to see how it feels and operates.  Good luck in your search.  Our family prefers Acuras and Hondas.

[kelmbabe]

Have owned Volvos for many years and owned several.  The 2.5 T inline 5 cylinder seem to be very reliable!   

Volvo parts being expensive........ not sure how true that is.   I compare filters, plugs, pads, battery, struts, ect.... common wear and maintenance items all cars will require.   Not sure the 2.5T parts are more than most common vehicles.   

Without starting an argument i have to say I dont feel our Volvos are any more "expensive" to maintain than a GM, Ford, Nissan or Toyota etc.   Have owned 6 2.5 based cars over the years.   My favorite a T5 S70 that we logged 238K on.  Both my boys drove s70's through HS and College.   Purchased them used with well over 100K miles, and all went well over 200K.  Never any "major" issues with any of them. 

I currently drive our 2006 XC90 2.5T.   Has 166K on it and see no reason to get rid of it.  Purchased it as a CPO'd car with 52K on it.   2006 was the last year of the inline 5 cyl.  Many owners have put a ton of miles on that design with not a ton of major issues. 

Hope this helps... a search of some of the specific volvo forum sites will give you the specifics you are looking for on both the cars you are considering. 

[HipGnosis]

Have owned Volvos for many years and owned several.  The 2.5 T inline 5 cylinder seem to be very reliable!   

2006 was the last year of the inline 5 cyl.  Many owners have put a ton of miles on that design with not a ton of major issues. 

Thats good to know, because and but:
I have an '07 C70 w/ the T5

Wiki says Volvo used the engine (slight modifications over the years) thru '16

[JLee]

Lexus here.  Japanese luxury build quality and Toyota reliability/parts costs.

[WhiteTrashCash]

If you want to save a ton of money and get a really reliable and very inexpensive used luxury car, you should consider the first generation Lincoln Zephyr/MKZ (2006-2012.) It's basically a luxury version of the Mazda 6, so it's very reliable, yet due to its badge engineering as a fake "domestic" vehicle, the used vehicle price is quite low. The luxury elements of it make it very comfortable with all the convenience and high end features you would expect from a luxury car. Just a thought, anyway.

I gave the same kind of advice to my little sister a few years ago when I advised her to buy an old used Chevy Prizm, because it was mechanically identical to Toyota Corolla from the same model year, yet about half the price because it had a Chevy badge on it.

[clutchy]

I work on cars myself so I look for older used BMW's with a complete service history and low miles if possible. 

my current garage has 4 cars from 19,000 miles all way to 186,000. 

It's hard to find "normal" cars with the options I like and doing the work myself makes the cost tolerable.