5 Luxury Cars Retirees Should Avoid Buying Before Christmas

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The holidays come with tempting year-end deals on luxury cars, and retirement can feel like the perfect time to splurge on a dream vehicle. But before diving in, there’s a couple of key reason to consider holding off, at least until after Christmas.

First, Social Security benefits are set to increase by 2.5% in January due to the annual cost-of-living adjustment (COLA), providing retirees with a bit more financial breathing room. Better cash flow could be useful for buying and maintaining a luxury vehicle. In addition, you’ll see plenty of year-end sales starting around Christmastime and going into the beginning of 2025.

Rather than jumping to buy now, here’s why waiting until after Christmas might make more sense, especially when it comes to these high-maintenance luxury models.

BMW 7 Series

• 2024 Model Starting Sticker Price: $97,395
• 2025 Model Starting Sticker Price: $97,575

Packed with high-end features and tech, the BMW 7 Series can be pricey to maintain, even after a holiday discount. By waiting until the New Year, retirees can benefit from the COLA increase, making it easier to budget for the 7 Series’s premium maintenance costs. It can also ensure a newer model with fresher features, or even give time to weigh more affordable certified pre-owned options.

Range Rover

• 2024 Model Starting Sticker Price: $108,875
• 2025 Model Starting Sticker Price: $109,375

While Range Rovers are stylish and luxurious, they are also known for reliability issues that could lead to frequent (and costly) repairs. While year-end discounts might be tempting, holding off until January could help retirees better manage potential maintenance costs with the extra income from COLA. If the off-road capabilities aren’t a must, retirees may find a more practical luxury SUV in early 2025 that balances style with reliability.

Mercedes-Benz S-Class

• 2024 Model Starting Sticker Price: $118,450
• 2025 Model Starting Sticker Price: $118,900

The Mercedes-Benz S-Class is a luxurious ride, but one that comes with higher than average maintenance expenses thanks to the same sophisticated engineering that provides it that luxury. By holding off until after Christmas, retirees may avoid steep losses in value and have the option to explore other upscale but less tech-heavy models that might be better suited for the long haul.

Audi A8

• 2024 Model Starting Sticker Price: $91,995
• 2025 Model Starting Sticker Price: $93,295

The Audi A8, known for steep depreciation, often fails to retain its value, even with holiday discounts.  Waiting until after the holidays could mean more options as newer models arrive and additional certified models hit the market. This timing can ensure retirees get a better price without sacrificing quality or reliability.

Tesla Model S

• 2024 Model Starting Sticker Price: $74,990

The Tesla Model S is a cutting-edge choice, but its high-tech features can be costly to maintain as technology evolves. It was built for constant, on-the-go upgrades, skipping the usual yearly updates or major redesigns. Therefore, waiting until 2025 might reveal better options, and the COLA boost could make affording any future upgrades or repairs easier.

For retirees, buying a luxury car is a rewarding way to celebrate the hard-earned freedom of retirement. However, buying in the frenzy of year-end sales can sometimes lead to impulse decisions that may not align with long-term financial stability. With the COLA increase coming in January, retirees can benefit from the added monthly income to comfortably manage the ongoing costs that come with luxury models, from insurance to maintenance.

_{Disclaimer: All sticker prices for 2024 and 2025 models were pulled from the Kelley Blue Book website.}

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