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Personal Finance > Autos
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Luxury cars for less
Why pay thousands more for a fancy name when you can have the same car for less money?
July 29, 2002: 10:50 AM EDT
By Jerry Edgerton, CNN/Money Contributing Writer

NEW YORK (CNN/Money) - You love the smooth ride, the comfort, the leather seats. In fact, you love everything about high-priced luxury cars except the high price. Well, if it's really luxury you care about - and not just impressing the neighbors -- you often can get a similar luxurious ride made by the same company for thousands less.

The secret: Look for luxury and "mainstream" brands that are corporate stablemates -- such as Cadillac and Chevrolet, Acura and Honda, Lexus and Toyota. These manufacturers use many of the same components for models in both the high-priced and lower-priced brands. So, careful shopping can often save big money on luxury while getting you everything but the brand-name cachet.

Sometimes buying the luxury brand really does get you more, though. When the company is trying hard to differentiate the luxury name they might give it a bigger engine or other advantage. That is the case currently with the Audi A4 and Volkswagen Passat. (More on that later.)

Cadillac Escalade EXT/Chevrolet Avalanche -- Sales are hot for the Escalade luxury sport/utility vehicle. But if you're after the EXT version that converts into a full-sized pickup, save yourself about $14,000 and get a Chevrolet Avalanche instead. General Motors came up with the innovative engineering that lets these two vehicles operate mostly as SUVs with a small enclosed bed in back. But when you need to haul some really big gear, you simply remove the "midgate" and open up the back-seat area to get a large truck bed.

Cadillac Escalade  
Cadillac Escalade

The lower-priced Avalanche gives you a smooth, comfortable highway ride. And you get plenty of power with its 5.3-liter, 285-horsepower V-8 (though the Cadillac does have a slightly bigger 6.0-liter, 345-horsepower version). If you select the four-wheel-drive version of the Avalanche to match up with the all-wheel drive Escalade EXT and put in an option package that includes leather seats, the list price is $36,206. According to the average selling price compiled by the automotive Web site Edmunds.com, you probably can negotiate the dealer down to around $32,500. The list price for the Escalade EXT version is $50,015 and the selling price about $46,800.

Chevrolet Avalanche  
Chevrolet Avalanche

The Cadillac does offer the Stabilitrak system, a combination of traction and stability control systems which isn't available in the Chevy. Still, even with that and the added cachet of the Caddy badge, it's tough to justify the much higher price in this case.

Savings: About $14,000

Lexus ES 300/Toyota Camry --Toyota fielded a full mechanical redesign for 2002 and used it in both its entry-level Lexus and the Toyota Camry -- a consistent best-seller in America. The Lexus ES 300 is smooth, comfortable and oh, so quiet. In short, it is everything you expect from a Lexus. But, for about $7,800 less, so is the top-end Camry XLE. Especially in achieving that almost-eerie highway silence that Lexus owners love, the Camry has made a big improvement over previous versions.

Lexus ES300  
Lexus ES300

The Camry redesign has given it a striking new look -- with a sportier stance and bulging front fenders helping to avoid the blandness of previous design. Some things haven't changed, though. The dependability and gravity-defying resale value remain from previous Camrys.

The Lexus does have some minor performance advantages. Variable valve timing in the Lexus provides 210 horsepower compared with 192 hp for the Toyota. Also, the Lexus has a 5-speed automatic transmission, where the Toyota has a 4-speed. Those are nice numbers, but in daily driving situations, you're unlikely to notice the difference.

Toyota Camry  
Toyota Camry

Because the ES 300 has lots of competition around the $30,000 mark, Lexus sets a low base price of $32,080 and then adds option charges for many amenities. After including leather seats and a multi-CD changer -- essentials on anything calling itself a luxury car -- the ES 300 lists for $34,015. If you are a decent negotiator you can probably get it for around $32,550. The Toyota Camry XLE, with the same leather and CD options, lists for $27.171. Look to buy it around $24,700.

Savings: About $7,800

Acura MDX  
Acura MDX

Acura MDX/ Honda Pilot -- In the jam-packed competition among SUVs, American Honda Motor Co. has produced some real standouts. Its Acura MDX mid-sized utility was a runaway hit last year, selling for full list price or more. Now the Honda Pilot and Acura MDX have reached dealer lots and seem headed for similar stardom. Both are selling for above list price, but for a savings of about $4,500, pick the Honda Pilot.

With the Pilot you get the same 3.5-liter, 240 horsepower engine as in the MDX. It gives you plenty of punch in city driving or on the highway. Well-designed bucket seats and bump-smoothing suspension assure the comfort of the driver and front-seat passenger. For buyers with families, the standard three rows of seats will handle up to seven people.

Honda Pilot  
Honda Pilot

With the second and third rows of seats folded flat, the Pilot opens up to a commodious 90 cubic feet of cargo space, compared to just 82 for the MDX. The Pilot hauls more than the previous mid-size cargo champ, the Ford Explorer. The MDX, on the other hand, does offer larger wheels: 17 inches versus 16 inches for the Pilot.

The Acura SUV lists for $35,200 and has been selling at a premium at about $36,500, according to Edmunds.com. The Honda Pilot with leather seats has a Manufacturers Suggested Retail Price of $30,980 and has been selling, also at a premium, for about $31,900.

Savings: About $4,500

Infiniti I35  
Infiniti I35

Infiniti I35/ Nissan Maxima -- The Maxima's redesign for 2002 has made it into a true luxury sports sedan in everything but brand name. Its new 3.5 liter V6 engine produces 255 horsepower and thrilling acceleration when you floor it. Its sporty suspension takes you neatly through those curves and corners. And on the highway, the ride is smooth and comfortable. You get the same engine and same attributes in sibling Infiniti I35. But the Maxima will save you about $2,000. Again, the brand name here doesn't seem worth the difference. While Infiniti has long made good cars, it has never achieved the cachet of rival Lexus, Toyota's luxury brand.

Nissan Maxima  
Nissan Maxima

The Maxima is part of Nissan's corporate resurgence in design and performance. It gives you more power and better handling than, for example, rival Toyota Avalon. Look at the SE version of the Maxima for the best handling. If you're a real sport, it even comes with manual transmission at the same price as the automatic. List price for the Maxima SE with optional leather seats is $27,355. You can likely buy it for about $25,100. The Infiniti I35 lists for $29,295 and is selling for an average of about $27,200.

Savings: About $2,000

Audi A4  
Audi A4

Audi A4/Volkswagen Passat -- The Audi Quattro was the originator of the all-wheel drive sedan and is still among the best at this specialty. If you live in the Snow Belt or any place where the weather is frequently foul, driving a Quattro can be comforting.

Corporate sibling Volkswagen also makes an all-wheel drive version of its Passat sedan, called 4Motion. But in this case, the newly-redesigned Audi A4 Quattro really is worth the extra $2,700 over the competing Passat GLX 4Motion. A major attraction is the new A4 engine -- a 3.0-liter, 220-horsepower V6 version not now available in the Passat. And the redesigned A4 is more sharply styled and larger -- with more legroom for rear passengers than before. And with Audi you are getting real luxury cachet, especially in a Quattro.

Volkswagen Passat  
Volkswagen Passat

In addition to the new engine, the A4 comes with an in-dash multi-CD changer, side air bags and a full range of safety equipment. Oddly, leather seats are optional but once you add those, the MSRP is $35,046. Aim to buy an A4 for around $33,800. The Passat GLX 4Motion lists at $32,150 and is selling at about $31,100. I love the Passat and would heartily recommend it in less expensive versions. But I would pay a bit more here for an Audi A4 Quattro.

Savings: None  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.