6 Things No One Tells You About Owning a Luxury Car
Becoming the owner of a luxury car, outfitted with all the bells and whistles you could ever imagine, can evoke all sorts of emotions — from silent self-satisfaction to unabashed delight. But if you’ve never owned a high-end vehicle, you might be surprised that the extra money you’ll shell out doesn’t stop at the purchase price.
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Here are six things you should know that no one tells you about owning a luxury car.
Depreciation Is Still a Thing
You might think that buying a high-end luxury car will shield it from depreciation, but it won’t. It will depreciate just like any other vehicle does. According to Carfax, you can expect to lose 10% of a car’s value in the first month you own it and 20% in the first year.
And unfortunately, within five years, your luxury car could lose more than half its value. Research data from CarEdge found that the average sale price of a Mercedes-Benz GLS-Class is $116,680 on average, and it will depreciate in value by $72,633 within five years. This means the average residual value at that time will be $44,047.
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Selling Your Car Privately Can Be Difficult
With such a steep depreciation rate for some luxury cars, you might be disappointed at what a dealership offers you for your car if you try to trade it in.
However, if you decide to sell your car privately to maximize your profit, you might be in for a long wait. Overall, and understandably so, there are fewer buyers for a used luxury car than there are for more popular, less expensive models.
Maintenance Costs Are Elevated
Oil changes, belt replacements, brake work — maintaining your luxury car will likely cost more than taking care of a car driven by the masses, according to the following data from CarEdge.
The five-year maintenance cost for a Toyota Yaris is $1,080, while the cost to maintain a Porsche Cayenne over five years is over five times as much: approximately $5,500.
A Mitsubishi Mirage incurs a five-year maintenance cost of $1,285 to maintain, while the five-year cost to maintain a BMW X7 is $4,989 — or almost quadruple.
Repairs Are More Expensive
And when it comes to repairs on a luxury model, you’ll likely pay more, according to the following Repair Pal estimates.
To replace an alternator on a 2022 Jaguar F-Type, it could cost you up to $1,329. The same repair on a 2022 Honda CR could cost up to $1,096.
To replace the catalytic converter on a 2022 BMW M850i xDrive Gran Coupe, it could cost up to $4,800. On a 2022 Toyota Camry, the same repair will cost up to $1,255.
Total brake pad replacement on a 2022 Land Rover Range Rover could cost up to $1,735, but the same repair on a 2022 Chevrolet Traverse could be only as much as $680.
Auto Insurance Premiums Are Higher
According to Lemonade insurance company, luxury cars have high-end performance and safety features and lavish interior appointments that command higher insurance rates — mostly because those things are more costly to replace, especially if you total the car.
The most expensive automobile insurance premiums are between $3,522 and $5,024 per year, according to Lemonade. To compare, the average cost of full-coverage car insurance in the U.S. is $2,150, according to Forbes Advisor’s analysis.
Luxury Cars Draw Attention
There’s no doubt that a flashy, high-end luxury car will draw attention — unlike most mainstream vehicle models. And that head-turning attention could be positive or negative.
When your expensive luxury car is parked in a public lot, people may hover near it, taking pictures or looking inside. Others may “key” your car out of spite or do something worse. It’s all part of owning something that’s out of reach for the average earner.
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