According to vehicle reports and studies, luxury car brands tend to hold their value longer. When we buy a luxury car, we invest in a vehicle that will have lower depreciation costs than economical car brands. Luxury cars also have a higher resale value and overall return on investment.
So, if we're looking to make a smarter business decision, who wouldn't go luxury? Well, the high price tag can be a major deterrent.
With some luxury vehicles costing more than a home downpayment or wedding, the purchase can be out of reach for most average consumers. So, why are there so many zeros behind the price tag?
Why are certain car brands so expensive? What do luxury car brands actually offer buyers? Read on to learn everything you need to know about luxury cars, pricing, and if the investment is really worth it.
What to Know About Luxury Cars
What makes a luxury car? It isn't just about the starting price or brand recognition. A luxury car offers consumers better quality, performance, technology, comfort, and amenities.
These attributes are both internal and external. For example, a luxury car should have a higher-performing engine in some models. While a luxury car's interior should include the highest quality seating like leather materials or a technologically advanced dashboard.
Did you know that many car innovations and trends begin in luxury vehicles? Then, those advancements trickle down to mainstream and less expensive car brands. So, early adopters benefit from the advanced and cutting-edge technology of a luxury car.
Luxury Vehicle Types
There are many types of luxury vehicles to choose from. Depending on interests or needs, we can select the luxury car that best suits our lifestyle. Here are some examples:
- Sports car
- Luxury SUV
- Sedans
- Electric Cars
- Plug-In Hybrid
Of course, dependent on our choices, each vehicle type will have different advantages or amenities. For example, a luxury sedan can offer more room and amenities for families.
Think heated back seats and entertainment options. While a bachelor may enjoy a luxurious 2-door sports car with the latest sound system upgrades.
General Costs of Luxury Cars
When we're shopping for luxury cars, it is important to have a general idea of pricing. But, we must remember that the ticket price is often not the final offer. We'll get into what to watch out for a little later on.
While each automobile manufacturer has different starting prices and features, the national average for new luxury vehicles is $50,000. But, keep in mind that many luxury car brands have a range of pricing.
For example, the cheapest Tesla on the market is $40,000. While the least expensive Mercedes-Benz costs less than $35,000.
Types of Car Brands for the Luxury Buyer
This is by no means an exhaustive car brands list. But, consider this a round-up of some of the most luxurious cars and models for sale on the market.
- Tesla model
- Aston Martin
- Mercedes Benz
- Range Rover
- Land Rover
- Maserati Quattroporte
- Rolls Royce Phantom
There are many other types of luxury car brands to explore. Check out different luxury brand websites and research the most attractive models and price points.
Explaining the High Price Tag
We may feel knowledgeable about luxury car brands, but what actually explains the high price tag? Unlike mainstream manufacturers like Fiat Chrysler automobiles or General Motors, luxury car manufacturing limits production.
Buying a luxury car is more expensive because of the work and labor that creates this limited production. To understand this concept simply, we can think about big box stores that rely on volume to drive sales. The more units they produce, the lower they can keep costs.
Oppositely, luxury car manufacturers often rely on highly skilled labor and the goal isn't mass production. Instead, they only want to create a few units that are incredibly well made.
This limited production protects the brand's identity and overall notion of buying luxury. Although technology is poised to redefine the luxury car, this only benefits the producer's bottom line.
Noting the Difference
As buyers, we are not only purchasing an expensive vehicle. We invest in craftsman machinery that was produced by experts and includes artisan details unique to our car. For example, the stitching on the leather seat or the paint finish are ways to decipher a luxury vehicle and see the price difference up close.
Buying a Luxury Car
When we're buying a luxury car, we first need to budget and be ready to spend. We know now the different types of luxury vehicles, car brands, and the option to purchase pre-owned. But, there are still some things we need to know about why luxury cars cost too much.
Things like undisclosed damages, failure to negotiate, and hidden extras can cost us big time. Check out these things to know before signing on the dotted line.
Brand New or Pre-Owned?
Buying a brand new luxury car is more costly than a pre-owned vehicle. But before we think of the word "used" negatively, consider the savings. EpicVIN has a platform to search for the right car for the right price. Use it to connect with dealers and receive a detailed vehicle history in one easy-to-access place.
A sample search of our inventory reveals buyers can purchase a 2000 BMW sedan for as low as $6,000. While newer BMW models can be purchased for upwards of $20,000. This is just an example of one luxury car brand we can purchase at a much more attractive rate when going the pre-owned route.
Before We Buy
If sold on buying preowned, make sure to check the car's history. Consider using an EpicVIN Vehicle History report. The report reveals important information such as:
- Previous Odometer Readings: was the odometer ever rolled back?
- Technical Data: identifying the vehicle specifications and technical data
- Theft Vehicle Check: was the car registered as a stolen vehicle?
- Previous Car Use: do we know how this car was used in the past? For example, the vehicle could have been a taxi or rental car.
- Hidden Damages: are there any undisclosed or hidden damages?
- Previous Sales Photos: are there any photos of previous sales?
These are important steps we need to take before purchasing luxury vehicles. While the hope is that all sellers are honest, this isn't always the case. Protect your hard-earned money and car investment by running a history report first!
Watch Out for Hidden Extras
When buying a new or pre-owned luxury car, watch out for extras that can drive the overall cost. Some extras we may happily purchase include GPS or upgraded leather seats.
But, there may be some unnecessary costs we don't need. For example, advanced radio technology may not be necessary. If this is the first time owning a luxury vehicle, remember to only use premium or quality fuel to refill the car.
This is a basic best practice for maintaining the car's quality and performance. But, more expensive fuel can also be a hidden or unforeseen cost. So remember to work this into the car purchase and budget.
Build Relationships
Remember that buying a car is all about negotiating and building relationships. If buying pre-owned luxury vehicles, the EpicVIN platform facilitates those relationships by connecting buyers with dealers and creating the ultimate marketplace. Working with a reputable dealer can ease the stressful process of buying a luxury car.
Because we tend to buy from platforms and people we trust, relationships are key to purchasing a car that matches expectations and provides value. Don't be afraid to connect with dealers, ask important questions, and compare and contrast models.
An Investment Worth Making?
Is a luxury vehicle an investment worth making? By budgeting, evaluating the different car brands, and considering pre-owned vehicles, a luxury vehicle can not only provide joy and fulfillment but turn into a profitable and valuable investment. Unlike mainstream vehicle brands that tend to lose their value over time, a luxury car maintains its value much longer.
As smart buyers, we always evaluate costs, investment, and value in everyday purchases like groceries or clothing. Use that same strategy when it comes to luxury goods. Don't only consider the cost at hand, but the future value of that investment and higher chances of resale in the future.
Luxury Car Brands May Be High in Cost but Can Prove to Be Highly Valuable
So, why are luxury car brands so costly? Remember, limited production and intensive labor.
It is important that we have a general understanding of luxury brands and pricing. The pricing for luxury new cars differs from luxury pre-owned cars. Pre-owned vehicles can be an excellent way to own a luxury car without breaking the bank.
When buying a luxury car, run a history report. Don't underestimate the power of building relationships with dealers and sellers!
Looking for a luxury car? Check out the EpicVIN car directory to purchase the perfect vehicle.
