Ready to Buy Your First Luxury Car? Here are a Few Things You Must Keep in Mind before You Do

A luxury car does a lot for you, instantly makes you look better, boosts your self-confidence, and turns you into a show-stopper wherever you go. Undoubtedly a luxury car stands out among the crowd, encouraging rich folks to shell out heavily for acquiring them. Luxury car provide an illusion of scarcity and exclusivity that appeals to the elite class as a status symbol or fashion statement. The luxurious features, exquisite experience and extravagant finish adorning the car are great but these extravagant vehicles come with a hefty price tag beyond any common man’s budget.

Creator: Daimler AG – Global Communic

Luxury cars provide comfort, state-of-the-art features, and are a symbol of high status. Luxury cars owners like James Bond look dashing with the collection of high value cars but with many dazzling, new cars, do think again. If you can afford one, there are budget- related issues to think about. So before enriching a high-end auto dealership, do consider the following:

ENVY FACTOR

With a luxury car ride around the neighbourhood or taking it to work daily, the car attracts envious looks, if it is a high-end vehicle. But the additional price of premium type of fuel for a luxury car is disturbing due to the size of their engines and cost of premium fuel it guzzles. Showing off your luxury car too often, involves burning premium fuel costlier than the regular kind.

Creator: Petar Chernaev | Credit: Getty Images

Apart from fuel, premium insurance for your expensive vehicle is also needed. If you manage to get your car into a major accident, the insurance company will only cover damages if you have invested in a more expensive insurance plan. Compared to lower-priced cars, insurance for these high-end vehicles involves higher premiums which could possibly add up to thousands of dollars annually. So you must not forget to factor in insurance premium costs, if your budget is adequate enough to pay only for the car.

STEEP MAINTENANCE COSTS

Credit: Freepik

Accidents occur, and repairs of expensive cars cost you more than the modestly priced cars as spare parts for these luxury vehicles are costly and technicians charge you more if you have deep pockets. As the luxury car ages, regular maintenance checks and upkeep costs more than that for less expensive cars. Brake checks and oil changes should be done routinely but for luxury cars, maintenance drills are not cheap. All this when luxury car manufacturers offer discounted maintenance initially, you shoulder these expenses after owning the car for some time.

LOW RESALE VALUE

If you sell your luxury car, more bad news follows. Most luxury vehicles have low resale value (although there are a few exceptions) and you inevitably lose money as your car’s value eventually depreciates over time. If you sell a high-end car to buy a new one, you inevitably spend more than the amount budgeted.

SECOND-HAND LUXURY CARS?

Creator: Petar Chernaev | Credit: Getty Images Copyright: Petar Chernaev

Buying a second-hand luxury car instead, involves heavy fuel, insurance, and upkeep, besides the steep price of a used luxury car exceeds that of a new mid-range vehicle. Taxes on luxury items can be rather steep so do research before a splurge. A new car is so appealing, but if it burns a hole in your pocket for life, do re-think priorities. A luxury car involves big money, and continuing maintenance expenses. After making savvy comparisons, a luxury car may not be worth purchasing.