Driving a luxury vehicle comes with two special things: bragging rights and a high cost of ownership. This simple guide from Pinecrest Shell will give you a better perspective on what the latter means.
1. Purchase Price
The average cost of a brand-new car is more than $25,000. In the 1990s, it was somewhere around $15,000. Luxury vehicles, however, are a different league. They can be worth at least $35,000 to as much as $100,000.
The incredibly high price tag is within reason. Unlike mainstream models, these expensive cars are more likely to have better design and function. For example, they are less noisy, are more fuel efficient, and possess better suspension. Manufacturing companies also pour in millions of dollars, from research and development to production and marketing.
Your luxury vehicle becomes a huge waste of money if you cannot drive it. You need to get an auto insurance policy, but how much would you spend? Currently, the national average is around $860 per year. In some states such as Virginia, it is much lower at $740 annually.
Luxury cars, on the other hand, have the highest premium rates. First, the cost of purchase remains one of the top considerations of any insurance company. Providers also consider risks, such as theft.
There’s no concrete statistics to show an increase in luxury car theft. In fact, based on the Hot Wheels report by the National Insurance Crime Bureau, most of the most-stolen models are mainstream and, interestingly, old. It doesn’t mean, however, that criminals are not keeping their eyes on luxury vehicles.
The cost of maintaining a luxury car is generally high, but it also varies. BMWs, for instance, may cost you around $17,000 within 10 years. An Audi, though, is only $12,400.
Auto shops specializing in luxury cars remind owners not to try DIY repairs to save on maintenance costs. These vehicles are often fitted with parts not easily found. “Substitutes” rarely work and can even affect the overall performance and longevity of the cars. Engine layouts may also be different. Most of all, a sloppy DIY work can surely decrease the vehicle’s value.
Luxury cars are not for everyone, but those who dream about them must have a broader idea how much money they need. If you’re one of them, get as much information as possible before you even go to the dealership.