Luxury
brands, such as Mercedes-Benz, BMW and Lexus, not only offer the allure of
refinement and comfort, but their names have become synonymous with class and
performance. Firmly cemented as leaders in the luxury car marketplace, these
cars offer prestige to everyone who drives one – resulting in elevated social
status levels and looks of envy on the faces of the other motorists on the
roadways.
The
question then becomes whether these cars are demanding their premium price tags
based on their high-end features and premium performance engines? Or, whether
car buyers are simply willing to pay more because of the status the brand names
carry?
Luxury Cars Really
Do Offer More
When
compared to the average car on the market, luxury vehicles generally offer more
in terms of power, driving experience, high-tech features and advanced trim
options. Even while affordably priced economy cars, like the Ford Focus, are
offering high-tech features such as park assist and touchscreen console
controls, luxury cars are taking this sophistication to the next level –
seemingly blending interior comfort features with performance to create a
driving experience that stands head and shoulders above all the rest.
But You Pay More
(And not Just on the Sticker Price)
The
initial sticker price tag is not the only place where these vehicles cost more.
When it comes time to shop for insurance, luxury car buyers often have to pay
more. This is especially true for high-end performance cars, where a higher
liability risk corresponds to higher insurance premiums.
Maintenance
costs are also another major consideration when buying a luxury car. Not only
can repair parts be expensive and hard to find, but it can also be hard to
locate a mechanic capable of repairing one of their sophisticated engines. The
end-result being that you end up paying a premium on repair bills.
Luxury Cars Hold
Their Value
While
value will depend on the specific vehicle and the current state of the used car
market, luxury cars often hold their value better than other vehicles. This is
especially true when buying used. After its first three years, a luxury car
will have already incurred its greatest losses in terms of value. So if you
really want a premium car, but at an affordable price, a later model used
luxury car is an ideal choice.
