Should You Invest in a Luxury Car?

A luxury car can be an indulgence, a status symbol, or, sometimes, an investment.

From the sculpted lines of a Porsche to the quiet confidence of a Mercedes-AMG, luxury vehicles offer far more than transportation. They’re feats of engineering, artistry, and heritage. But do they actually hold or even gain value over time?

The short answer: usually not,  at least not in the financial sense. But that doesn’t mean they’re not worth investing in. Luxury ownership is about preserving performance, craftsmanship, and emotion, and that’s where Distinctive Auto Works comes in.

This guide breaks down when a luxury car can appreciate in value, how to protect it, and why certified care is key to maintaining your investment for the long term.

Why Most Luxury Cars Are Not a Traditional Investment

Despite their prestige, most luxury vehicles follow the same depreciation curve as standard cars,  just with higher starting prices. On average, a new luxury car loses 40–60% of its value within the first three years.

Factors behind luxury car depreciation:

• Depreciation and demand: As newer models with updated features arrive, even top-tier vehicles can quickly lose their showroom appeal.
• Taxes and import costs: In Canada, luxury vehicle taxes and import duties further inflate initial prices, making resale less profitable.
• Climate and road conditions: Harsh winters, road salt, and fluctuating temperatures can all impact condition and resale value.

But for most owners, the return on a luxury vehicle isn’t financial, it’s experiential. The comfort, safety, and craftsmanship you enjoy every day are where the real value lies.

When a Luxury Car Can Be a Good Investment

While most luxury cars depreciate, a select few do appreciate, but only under specific conditions. Vehicles that become collector’s items often share three traits: heritage, rarity, and pristine condition.

Examples of collectible luxury cars that have increased in value:

• Porsche 911 Carrera RS 2.7 (1973) – A motorsport icon whose lightweight design makes it one of the most sought-after classic Porsches.
• Ferrari F40 (1987) – The last car personally approved by Enzo Ferrari, now valued well into the millions.
• Mercedes SLS AMG (2011) – A modern classic known for its gullwing doors and naturally aspirated V8.
• Tesla Roadster (2008) – The first-generation EV that started a revolution, now a prized early collectible.

For these vehicles, brand legacy and condition are everything. A well-maintained, limited-edition model with verified service history and original parts can command extraordinary resale prices decades later.

The Case for Pre-Owned Luxury Cars

If your goal is value retention rather than speculation, buying pre-owned can be a smarter investment.

Luxury cars experience their steepest depreciation in the first two to four years, meaning that well-maintained, certified pre-owned models often represent the “sweet spot” between performance and price stability.

Why pre-owned luxury cars make sense:

• The initial depreciation hit has already occurred.
• Many are still under manufacturer warranty or certified programs.
• Maintenance records and OEM-certified repairs preserve resale value.

At Distinctive Auto Works, we restore and protect these vehicles to factory standards using OEM parts, advanced tools, and precision craftsmanship, making sure that your pre-owned purchase looks, drives, and lasts like new.

Explore our OEM Certifications.

Protecting the Value of Your Luxury Vehicle

Even if your car isn’t a financial investment, it’s still an investment in performance, emotion, and pride.

Here’s how to preserve its value for years to come:

• Certified collision repair: Always insist on OEM parts, paint-matching systems, and structural alignment.
• Professional detailing & paint protection: Ceramic coatings and clear bra films shield finishes from chips, salt, and sun.
• Seasonal maintenance: Protect against Canada’s harsh climate with regular inspections, battery checks, and underbody cleaning.
• Complete documentation: Keep service records, repair receipts, and warranty paperwork organized.

DAW’s concierge experience makes sure your vehicle receives the precision care it deserves, from pickup to final polish. Every repair is backed by a lifetime workmanship guarantee, giving you total confidence in your investment.

Learn more about the Distinctive Experience.

The Hidden Costs of Luxury Ownership

Owning a high-end vehicle means maintaining it to high-end standards, but many first-time buyers overlook the ongoing costs that come with keeping a luxury car performing at its best.

• Premium fuel and synthetic fluids
• Specialized tires with performance ratings or custom sizes
• Higher insurance premiums for luxury vehicles in Canada
• Repairs requiring OEM-certified tools and training

At DAW, our technicians understand that cutting corners can be costly. A single misaligned ADAS sensor or mismatched paint blend can reduce value and compromise safety. That’s why we use manufacturer-approved diagnostics, Celette frame benches, and OEM paint systems to restore your car exactly as the factory intended.

The Emotional and Experiential Value

Some investments you measure in numbers, and others you measure in joy.

Owning a luxury car is about craftsmanship, comfort, and connection. That feeling when every detail, every curve, every sound is exactly right. It’s about the experience as much as the asset.

At Distinctive Auto Works, we see luxury ownership as an investment in excellence itself. When we restore your vehicle, we’re restoring your confidence, and that’s something no depreciation curve can measure.

How to Approach Luxury Car Ownership Wisely

For those considering a luxury car, here’s how to make ownership rewarding, both emotionally and financially:

• Don’t expect appreciation unless collecting rare models.
• Choose brands with strong reliability and dealer networks (Mercedes, Lexus, Porsche).
• Keep maintenance and repair documentation complete and organized.
• Always choose OEM-certified repairs after a collision to protect structural integrity and resale value.

Book a Certified Repair Consultation. 

FAQs About Luxury Car Investments

Which luxury car is the best investment?

Models like the Porsche 911, Ferrari F40, and limited-production Mercedes-AMG Black Series are among the few luxury cars that have appreciated in value due to their rarity, heritage, and collector demand. When you’re considering which luxury car is the best investment, always look for models with limited production numbers, strong brand legacy, and meticulous maintenance history.

What car brand do most millionaires own?

According to global surveys, most millionaires own luxury car brands like Mercedes-Benz, BMW, and Lexus, which are all vehicles known for long-term quality, performance, and prestige rather than exotic collectibility. These brands reflect practicality and comfort as much as status, showing that wealth often values reliability and refinement over flash.

How much should I spend on a car if I make $70,000?

If you earn $70,000 a year, financial advisors suggest following the 20% rule, meaning no more than 20% of your annual income should go toward car payments. For this income, that translates to around $14,000 for a vehicle purchase, allowing room for maintenance, insurance, and other costs without overextending your budget.

What is the 20% rule when buying a car? 

The 20% rule is a budgeting guideline suggesting that your total car expenses,  including your monthly payment, insurance, and maintenance, should not exceed 20% of your take-home pay. Following the 20% rule when buying a car helps make sure you maintain financial stability while enjoying your vehicle responsibly.

What luxury car doesn’t depreciate?

Some of the luxury cars that don’t depreciate quickly include rare or special-edition models like the Porsche 911 GT3, Ferrari 458 Italia, or certain Bentley Continental GTs, which tend to hold their value over time. These vehicles combine limited production with timeless design and performance, especially when kept in pristine condition with complete service documentation.

Most luxury cars aren’t investments in the financial sense, but they are investments in experience, craftsmanship, and care. Protecting that value means trusting experts who understand what your vehicle represents.

At Distinctive Auto Works, we restore luxury vehicles with OEM precision, master craftsmanship, and concierge-level service, so your car continues to perform, and impress, exactly as it was designed to.

Protect your investment. Book a certified luxury repair consultation today.