re: Car buying preference: 3 year old luxury car or new ordinary car?

The only issue with a German luxury car is cost of maintenance. The oil change/services aren't that bad because they are every 10k miles or so. What hurts is the major repairs, they can be really, really expensive. That being said, by purchasing a used luxury car you skip the huge initial depreciation. No way I'd buy a brand new loaded Honda either since I would be taking the big hit on depreciation.

For 30k, I'd probably get something nicer than an accord, and less costly than e class.... I'd look into a certified preowned Infiniti or Acura.

If I really wanted to spend 30k on a Benz or Beamer I wouldn't get a 4 year old e class, I'd rather get a slightly older higher end model, since both cars would be out of warranty and potential money pits.