Purchase Audi Q5 Cadillac XT5

[freedom8991]

I am hoping to gain some clarity from the wise folks on this forum. I am in the position where I need to purchase a different vehicle.  I have purchased three vehicles since 2010 and driven them until they were well over 250,000 miles. Each of these vehicles was purchased used-Two of them were Chevy Impalas and the other one was a Subaru Impreza.  I paid cash for each of these vehicles. I am thinking that I would like to purchase a new vehicle for the first time in my life.  I am 63 years old and have worked nonstop growing a business since 2011. I can theoretically pay cash for either a 2024 Audi Q5 or a 2024 Cadillac XR5--around $45,000 to $50,000.  I travel a lot for work and as I get older find that I need a vehicle that provides a good amount of comfort and will handle well on the winter roads. I cannot use it as an expense-my accountant advises against purchasing it as a company/business vehicle as the amount of mileage I am able to claim each year is more than the depreciation that the vehicle would provide.  I am looking to retire at 67 and believe that I have enough investments to keep my needs and wants taken care of in retirement.  So my question is-Am I crazy to want to purchase this luxury vehicle-Shall I do what I have always done-and purchase a used vehicle? Or jump in feet first and purchase the luxury vehicle? 

[travel2020]

You can always purchase a slightly used, CPO luxury vehicle. I’ve seen One year old CPO Audis with only 3-7k miles at savings of $8-10k+ depending on the specific model. Usually CPO extends the remaining warranty by a year or more and you can purchase an extended warranty for a longer term if desired.

Q5 is rated well by the consumer reports as well so good option among luxury brands.

[GilesMM]

If you want comfort, quality, luxury and reliability, I would skip the Germans and Americans and get a Lexus RX350.

[Dave1442397]

I'd also vote for Lexus, maybe the RX, TX, or GX models.

Audis seem to be designed to maximize dealer profit on maintenance. I don't know much about the Q5 specifically, but I saw this video about how much labor is involved in replacing a thermostat on another Audi, something that took me 45 minutes on my Lexus. https://youtu.be/9ho4M3_37pk?si=Xl_HCtCC0jMPxum6&t=360

I've had GM products and won't buy another one. My Cadillac CTS went through wheel bearings as if they were made of tin. Cadillac knew it was a problem from the issues with the 2008 and 2009 models, so what did they do? Fix it? No, they excluded wheel bearings from the warranty.
The CTS was also subject to major electrical issues if you didn't keep up with keeping the sunroof drains clear, but most people didn't know to do that.

I'm sticking to Lexus/Toyota from now on.

[freedom8991]

Thank you for your input. I am still shopping and will take your suggestions with me.

[ChpBstrd]

Look up the terms "Audi" and "repair" on YouTube for an introduction to the pain of Audi ownership. Finding a mechanic willing to work on your Audi will be a challenge because they're so legendary for being expensive trash.

As for the Caddy, it's hard to justify paying the same amount for a possibly-medium-quality vehicle as you could pay for a top-quality vehicle such as the Lexus suggested above. I would go further and evaluate whether you get any extra benefit from the Lexus/Acura/etc. luxury nameplate than you'd get from a loaded car with the parent company Toyota/Honda/etc. nameplate.

As @travel2020 notes, you can get slightly used luxury vehicles for a massive discount. It is the "newness" that people pay an extra five figures for and this is especially true for status symbol vehicles. If you're buying for the comfort factor, used is just as good.

Finally, I suggest digging into certain quality details:
-Does it have a cone-and-belt CVT transmission? If so, avoid!
-Does it have a plastic oil pan and/or camshaft cover? Probably a sign of low quality.
-Does it have a timing belt, rather than a chain? If so, avoid unless you like doing $2k maintenance every 100k miles.
-Consider the hybrid models. They tend to have better transmissions, drive more quietly, and the engines last longer.

[sonofsven]

I have admittedly low standards when it comes to "nice" cars, my nice car is a 2000 Avalon, but I took an Uber ride in a brand new Camry last week and I couldn't believe how nice it seemed.
Also, is your accountant familiar with a section 179 deduction for the business use of a  vehicle?

https://www.investopedia.com/terms/s/section-179.asp#:~:text=Section%20179%20of%20the%20U.S.,over%20a%20period%20of%20time.

[freedom8991]

Look up the terms "Audi" and "repair" on YouTube for an introduction to the pain of Audi ownership. Finding a mechanic willing to work on your Audi will be a challenge because they're so legendary for being expensive trash.

As for the Caddy, it's hard to justify paying the same amount for a possibly-medium-quality vehicle as you could pay for a top-quality vehicle such as the Lexus suggested above. I would go further and evaluate whether you get any extra benefit from the Lexus/Acura/etc. luxury nameplate than you'd get from a loaded car with the parent company Toyota/Honda/etc. nameplate.

As @travel2020 notes, you can get slightly used luxury vehicles for a massive discount. It is the "newness" that people pay an extra five figures for and this is especially true for status symbol vehicles. If you're buying for the comfort factor, used is just as good.

Finally, I suggest digging into certain quality details:
-Does it have a cone-and-belt CVT transmission? If so, avoid!
-Does it have a plastic oil pan and/or camshaft cover? Probably a sign of low quality.
-Does it have a timing belt, rather than a chain? If so, avoid unless you like doing $2k maintenance every 100k miles.
-Consider the hybrid models. They tend to have better transmissions, drive more quietly, and the engines last longer.

Thank you for your thoughts-I did research the possible cost of repairs to an Audi and decided to not go with it.  I live in a smaller town and there is not a mechanic who has the experience with an Audi-and so I would need to travel to maintenance and repairs-So if it is broke down...how do I get it an hour from my home...So the Audi is a no for sure.

I am looking at getting a 2023 Cadillac XT5-it has 1900 miles on it-and was used as a demo/loaner by the Cadillac Dealership.  So I may go with it-they have knocked down nearly $7000.00 at this point to accomodate for it being a 2023 and having 1900 miles on it. So we will see:)

[freedom8991]

I have admittedly low standards when it comes to "nice" cars, my nice car is a 2000 Avalon, but I took an Uber ride in a brand new Camry last week and I couldn't believe how nice it seemed.
Also, is your accountant familiar with a section 179 deduction for the business use of a  vehicle?

https://www.investopedia.com/terms/s/section-179.asp#:~:text=Section%20179%20of%20the%20U.S.,over%20a%20period%20of%20time.

Thanks for your thoughts about the Section 179 deduction for the business use of a vehicle-and yes she has reconsidered and is now  is well versed-and highly recommends that I purchase a business vehicle.