Some of the most envy-inducing luxury marques suffer steep depreciation, leaving their second owners with big bargains.
Everybody loves a bargain. Especially when it’s a status symbol that telegraphs a wealthy tax bracket. That great price you got on a wheelbarrow won’t make for much of a story down at the pub – unless it’s a gathering of green thumbs – because most people don’t know the going rate for one. And they don’t care. But find a loaded luxury sedan for the price of a mid-size sedan and it could make you a legend at the Pig & Poke. The secret, of course, is to buy used.
Let the unseen hand of depreciation do its worst with the first owner, enabling you to scoop up a premium nameplate for less than half price. With leasing now popular again, returned luxury cars represent a fantastic buying opportunity. Here are eight 2012 models that have lost more than 50% of their value in just three years. Earlier models can save you even more. Some of the most envy-inducing marques suffer steep depreciation for a variety of reasons, leaving the second owner sitting pretty.
Since 1972, the Mercedes-Benz S-Class has been synonymous with sumptuous luxury, granite-like construction and a grand presence that broadcasts money and privilege as effectively as a Wall Street luncheon. For the previous generation S-Class, unveiled for 2007 and significantly updated for 2011, Mercedes-Benz introduced a mind-bending array of safety and technology features, including front seats that give massages, an adaptive cruise control that can sort through city traffic, and infrared Night View Assist, which displays ghostly images of objects beyond headlight range.
True to form, the S-Class never leaves one for want of power. The entry-level S450 short-wheelbase model unique to Canada used a 335-horsepower 4.6-L V-8; optional was a 382-horsepower 5.5-L V-8 and 518-horsepower 6.2-L V-8. There were twin-turbo V-12 monsters capable of 510 horsepower and 604 horsepower, while 2012 marked the return of a turbo-diesel to the lineup with the S350 Bluetec, grinding out a prodigious 455 lb-ft of glorious torque. There was also a mild hybrid version marketed as the S400 Hybrid. Most models offered Mercedes’ 4Matic all-wheel-drive system. Whether purchased with new money or dusty old money, the S-Class has always stood for lavish motoring without compromise. Its rapid depreciation is just icing on a very rich cake.
Lexus audaciously staged the global launch of its redesigned 2007 LS 460 flagship in Salzburg, Austria, a stone’s throw from the headquarters of Germany’s hallowed luxury automakers. Groomed for European sales, the fourth-generation LS offered both regular and, for the first time, long-wheelbase versions on a stiffer rear-drive chassis. The LS gained a new front and rear multilink suspension, electric power steering and electrohydraulic brakes. Power was supplied by an aluminum 4.6-L DOHC V-8 with hollow camshafts and the world’s first dual variable-valve timing (driven by electric motor) to churn out 380 horsepower and 367 lb-ft of torque.
The LS 460 is built in Japan to exacting standards, featuring an opulent interior that embraces its occupants and a dizzying array of technological features, including reclining rear loungers, a refrigerated cooler and rear-seat entertainment systems with theatre-quality sound. While it coddled its passengers, this luxury sedan inadvertently isolated the pilot from the road. An exhilarating drive was not the LS’s forte. But the V-8 engine is the embodiment of smooth and – very importantly – it knows how to avoid a service bay, unlike a lot of the German iron. Despite poor sales in recent years, the Lexus LS is a worthy second-hand buy.
Volvo’s top-drawer sedan was crafted for 2007 using a parts bin from then-parent company Ford’s shared global technology, but largely based on the “C1 plus” architecture that underpinned Ford of Europe’s Galaxy minivan. The base S80 used a new 235-horsepower 3.2-L inline six cylinder shoehorned under the hood sideways and matched to a six-speed automatic transmission driving the front wheels. Optional was the 4.4-L DOHC V-8 supplied by Yamaha; it directed its 311 horsepower through the standard Haldex all-wheel-drive system. The performance-oriented T6 utilized a turbocharged 3.0-L inline six, good for 281 horsepower (later upgraded to 300 horsepower) and mated to the Haldex system.
Inside, the leathers and wood were ocean-liner decadent, and the ergonomic layout was second to none. Drivers who’ve owned other premium brands praised the S80 for its simple elegance. Being a Volvo, it bristled with advanced safety gear, including speed-sensitive adaptive cruise control with a collision warning function, and a Blind Spot Information System. It was cutting-edge stuff in 2007, but as other luxury vehicles adopted the technology, the S80’s appeal withered. The gem-like Yamaha V-8 was dropped in 2011, which stripped the car of its one true charm. Bereft of funds, Volvo let the S80 languish, which only hastened its steep depreciation.
Realizing its Mesozoic-era Town Car was destined for the tar pits, Lincoln strived to fashion a suitable replacement out of a modern front-drive sedan; namely, the Taurus. The new-for-2009 Lincoln MKS used Ford’s D3 platform, but updated to improve rigidity, reduce noise and harshness, and to make a good home for the new independent multilink rear suspension. The MKS was launched with an all-aluminum 3.7-L DOHC V-6 engine making 273 horsepower and 270 lb-ft of torque using regular gas (two horses more with premium). The engine worked in tandem with a six-speed automatic transmission. The Volvo-derived platform brought with it the Haldex all-wheel-drive system.
To silence critics who groused that the MKS felt underpowered, Ford offered its EcoBoost twin-turbo, 3.5-L V-6 optionally for 2010, with 355 horsepower and 350 lb-ft of torque on tap, bundled with standard all-wheel drive and a fortified six-speed automatic. MKS owners adore the sedan’s fit and finish, premium furnishings, helpful interface and considerable presence. It’s a big sedan in the American tradition, but one that’s found relatively few fans, perhaps due to its resemblance to the utilitarian Taurus. If you can get over the fact that the MKS is showing up in airport limousine fleets, you can enjoy a deeply discounted bargain.
Infiniti has no romantic history and no old war stories to illustrate the marque’s legacy. Established as Nissan’s luxury-car brand in 1989, Infiniti began by recycling Nissan’s Japanese-market Cedric/Gloria sedans for North American consumption. It was an undeniably sleepy start for the brand. Everything changed in 2006 when engineers employed the balanced FM platform used by the G35 and other Nissans to build a larger M series sedan that offered all the performance goodness of the G, but with the option of V-8 power. The M45’s 325-horsepower 4.5-L DOHC V-8 delivered its thrust to the rear tires, just like the pricy Teutonic brands.
The M45 Sport featured a highly tuned independent suspension, active rear-wheel steering and 19-inch rubber. The V-8 was offered with Infiniti’s sophisticated all-wheel-drive system for the first time in 2008. (The entry-level M35, with its familiar 275-horsepower 3.5-L V6, had optional all-wheel-drive for some time.) The M was redesigned for 2011, adopting Nissan’s Coke-bottle styling regimen that lent the sedan an extroverted profile. The M37 used a 330-horsepower 3.7-L V-6 engine, while the M56 featured a 5.6-L direct-injection V-8 that churned out 420 horsepower. Despite the impressive output, the Infiniti M series cars flew below buyers’ radar. Happily, second-hand examples do not command a big premium.
It’s not easy making a vehicle out of aluminum. The alloy is prone to tearing when stamped with dies designed for steel and welding is tricky. Audi perfected the process back in 1994 when it released its A8 flagship sedan. The Audi Space Frame consists of cast aluminum components, hydroformed aluminum beams and stamped aluminum sheets overlaid with aluminum body panels that fit together with astonishing precision. The result is a car that’s more than 100 kilos lighter than a comparable sedan in steel, an effort that pays dividends in terms of improved acceleration, driving dynamics and fuel efficiency.
Redesigned for 2011, the A8 grew larger with all the obligatory high-tech gear and posh furnishings packaged inside an impeccably tailored cabin. The 4.2-L direct-injection V-8 made a return engagement, pumping out a new peak total of 372 horsepower, working through a ZF eight-speed automatic transmission and Audi’s standard Quattro all-wheel-drive system. The result is an expansive, but agile, luxury Q-ship that conceals its best attribute under layers of rich paint. The A8 is distinctive in a way that’s not immediately obvious. For this reason alone it deserves a close look and a lengthy test drive.
Cadillac is no stranger to plunging depreciation, but the fact that its mostly excellent CTS can be found at cut-rate prices is good news for bargain hunters. Utilizing GM’s rigid Sigma II rear-drive platform, the second-generation CTS for 2008 was 5 centimetres wider with corresponding growth in the front and rear tracks, which made the car more stable at speed. The new exterior looked especially good, and the cabin revealed more eye candy. Buyers had a choice of cool carbon-fibre or real wood trim. Bright metallic accents dressed the interior without looking garish. Rear-seat passengers enjoyed a little more legroom, thanks to slimmer front seats.
The base engine was a 263-horsepower 3.6-L DOHC V-6; newly available was a direct-injected version of the same engine, yielding 304 horsepower. Both motors were available with an Aisin six-speed manual transmission or a new six-speed automatic. Rear-wheel drive was standard, while all-wheel drive became available for the first time. The 2010 lineup expanded with a five-door Sport Wagon, and all models got a new base engine in the form of a 270-horsepower direct-injection 3.0-L V6. The sleek CTS Coupe joined the lineup for 2011 – Cadillac’s first two-door since the Eldorado retired in 2002. Lauded as a driver’s car, the CTS had spent a great deal of development time on Germany’s Nürburgring racetrack – and it showed.
Redesigned for 2005, Acura pulled all the stops to build a luxury performance sedan to take on all comers. It used a 3.5-L SOHC (24-valve) V-6 engine that employed Honda's VTEC variable valve timing engine technology to produce 300 horsepower fed through a five-speed automatic transmission that dispatched the power to all four wheels through Acura’s Super Handling All-Wheel-Drive system. SH-AWD distinguished itself with its ability to split the power not only fore and aft, but between the left and right rear wheels, assigning as much as 70% of the power to just one wheel to correct oversteer or understeer.
It was remarkable stuff – technology that has since migrated to Acura’s popular sport utilities – but one that left the RL strangely lacking any sporting pretensions. It was uncommunicative with the pilot and, well, slow. Despite updates in 2009 and 2011, the RL sold in minuscule numbers, in part because of its bland styling and lacklustre performance envelope. It offered no V-8, unlike many flagship models, and the posh cabin lacked legroom in the rear seats – a faux pas in the luxury segment. Acura’s own TL offered much the same technology and room at a lower price point. The RL quietly bowed out in 2012. However, bristling with the best technology Honda/Acura could muster, the RL is worth a look.
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