In Austria, a Toyota Yaris (different name) costs 15,000 - 16,000 euros. That's around $19,000+ even with the weak euro right now. A BMW X3 SUV starts at 41,500 euros. That is $52,000 now but, before the colossal euro drop, it would have been more like $62,000.
Last I checked, a Yaris costs $12k in the US and an X3 starts around $37,000.
So you're right, it's not double, but it's close enough for me. Especially as soon as the Euro gains its strength again, or the US dollar drops down.
That amount of money for a car is ludicrous to me. When I spent 10 hours a week in the car, I had a Toyota Matrix and it was perfect. When I plan to spend 10 hours a month in a car, it's beyond ludicrous. :)
EDIT: If you're looking at export deals, you might be looking at prices without the 20%+ VAT and additional luxury taxes.
Regarding the X3, I agree with Jeremy Clarkson that it's pointless: http://www.youtube.com/watch?v=u2LLMxlkT-Y It's not really good off road, and as a car it's worse than a normal car.
Personally I'd rather have a used luxury car than a new Yaris. Instead of a Yaris for 16k you could get a used BMW 3 series for about half. For instance this http://suchen.mobile.de/fahrzeuge/showDetails.html?lang=en&#... Even though it's older than a new Yaris it's more comfortable.
Even a BMW 7 series for about 10k (in Austria). http://suchen.mobile.de/fahrzeuge/details.html?lang=en&i... A 7 series uses more fuel, but if you are not driving much, fuel costs aren't a big part of total costs. Insurance and service costs would be higher though.
I suspect a BMW 1-series hatchback, which is much more comparable to the Yaris is also much closer in price. Perhaps that would provide a good compromise for you.
I suspect the utility your husband sees in the X3 has little to do with a car's supposed function of transporting people and property and much more with its value as a status symbol. Unfortunately for him, displays of wealth tend to hinder one's attempts to accumulate wealth.
I wasn't comparing the two cars' price points with each other, but comparing their price points with their US price points. Neither of those cars, actually, were ones either of us wanted. I just had seen ads for them recently.
And trust me, it's not a status symbol to my husband. Nobody is impressed by BMWs in Austria. They're common as dirt. Even all the cabs are Mercedes sedans, or the occasional Prius.
I refuse to get a BMW because we'll drive, like I said, maybe 10-15 hours a month. It costs the same to buy a car as to rent one each time, if we get a cheaper but reliable VW. So how nice the car is to drive doesn't really matter.
I don't know how it is in the EU, but in the US it makes very little sense to buy a new luxury car. Many people who like luxury cars also like owning the newest one. This means they lease and/or buy them and only keep them for 1-2 years. If you look in the used luxury car market you can find great deals. So great in fact that I'm amazed anyone buys one new, but that's what people like to spend their money on I guess.
Any time I've looked at leasing a car, it's a bit more expensive than what it would have cost me if I had purchased the car, used it for a couple of years, and then sold it.
With the lease, I'm paying a premium for not having to worry about being able to sell the car afterwards... it's certainly simpler.... but I'm not at all sure that it's cheaper in the end.
I'm from the US. Here's why I previously bought a new car (the high-end trim level Matrix, not luxury though):
I wanted a low mileage car because I had owned several high-mileage, but reliable, used cars, and calculated that I spent at least $200/mo over the year on routine repairs and maintenance.
A low-mileage (sub-30K) late year model, otherwise identical used car cost only $2,500 less than the new car.
The interest rate on a no-downpayment loan for the new car was 0% for 12 mos and 3.9% after. The interest rate on the no-downpayment loan on the used car was 13% from the start.
On the new car, I wouldn't have to pay for the first major service for about 18 months. On the used car, it was coming up in a matter of months. (The 30k). Not to mention it would soon need new tires, brake pads/rotor turning, and it was the half-life for the struts and major transmission services, too. (That's $1000 right there.)
You have no idea how the used car was treated in the breakin period and early oil changes, etc, and by only 30K miles, the damage won't have shown itself the way it will have by 80K miles. So when buying a low-mileage used car, sometimes you're actually making a greater gamble.
As you can see, all the logical points added up to buying the new car. It would actually cost less because of the financing and repair bills I would be less likely to pay during ownership.
Additionally, I was able to buy it right away, without having to hunt around, because the first few used ones I found with the trim level I wanted were safety cone yellow. Ugh.
Moral: BUYING USED ISN'T ALWAYS A SMARTER DEAL.
I love splurging on things, but not when the splurge comes back to haunt me month after month. ;)
EDIT: I agree with you about the luxury car, period, and also I wouldn't buy one used. That's why I'm trying to talk my husband out of a BMW, period. IMO the cost difference between a low-end BMW and a high-end VW isn't worth it.
Where are you banking that your used car loan is 13%?! The one I have now is 6% and bank rate lists current used car loans for 48 months at 6.38%. You need to find a new bank :) I really hope you're not using dealer financing...ugh.
I agree that buying a used car does take a bit of leg work. The last one I bought took me almost 3 months of looking. At the time I bought my last car the dealership wanted $33k for the base trim new. I bought the 1 year old version with 12k miles and higher trim level for 24k. The car was a 4-Runner, not exactly luxury, but a nice reliable car. I'm looking at Range Rovers now and the price difference between new and 1-3 years old is amazing.
I also get a mechanic to check out any car before I buy it. Luckily I have multiple mechanics in my family.
Oddly enough I have bought 1 new car in my life and it was the car that gave me the most problems. I had it in the shop every other week because of some computer/vapor exhaust issue. When I finally sold it, the engine light had been on for about 3 of the years I owned it.
In Austria, a Toyota Yaris (different name) costs 15,000 - 16,000 euros. That's around $19,000+ even with the weak euro right now. A BMW X3 SUV starts at 41,500 euros. That is $52,000 now but, before the colossal euro drop, it would have been more like $62,000.
Last I checked, a Yaris costs $12k in the US and an X3 starts around $37,000.
So you're right, it's not double, but it's close enough for me. Especially as soon as the Euro gains its strength again, or the US dollar drops down.
That amount of money for a car is ludicrous to me. When I spent 10 hours a week in the car, I had a Toyota Matrix and it was perfect. When I plan to spend 10 hours a month in a car, it's beyond ludicrous. :)
EDIT: If you're looking at export deals, you might be looking at prices without the 20%+ VAT and additional luxury taxes.