Are Luxury Cars Worth the Price?

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.

The bottom line is that a luxury car is worth its price – especially when you buy it used. When purchasing a luxury car that is two to three years old, you are still receiving a high-end driving experience, just for thousands of dollars less than you would if you had bought it new.