Are luxury cars worth it? Short answer, yes and no. Long answer, read below.
For the past two millennia, luxury is a word that describes something pleasurable, fancy, and tasteful. To sum it; luxury = expensive. But, one would argue that cars are more or less the same when it comes to features, tech, and materials, how come these cars come with a hefty price tag? And when you have the means to buy, are luxury cars worth it? We’ll tell you why.
Why Are They Expensive?
The out-of-this-world price tag is due to the low production volume of these vehicles. Many people believe that fancy cars such as Lamborghini, Jaguar, and Ferrari are not affordable because of their superior quality parts and materials. This assumption is only half-correct.
For example, most luxury cars use fine leather for their seats, instead of using vinyl or cloth. But the costs between these three are not that far apart. Other luxury offerings, such as heated seats and glass roofing aren’t that expensive to produce, too. Many of these features are also available in “economy” cars. So, what gives?
The main known reason why luxury cars are expensive is due to their low production volume. Carmakers spend millions of dollars on developing a vehicle and improving its performance. And we’re not even including the costs of creating a plant, getting some workers, marketing. If we combine all these costs, then the bill can go up to a billion or more. The amortization of the costs of development is then divided by all the units created. And since the production volume of luxury cars is low, the price for each one is going to be high.
So why limited production? Because of their car’s noteworthy performance, most luxury cars rely heavily on their brand. Names like Audi and Ferrari are already known and synonymous with luxury; therefore, people already expect these cars to be pricey.
So Are Luxury Cars Worthy Of Their Price Tag? Here Are Some Insights
Performance – You can never go wrong with carmakers like Mercedes and Aston Martin – they are renowned for a reason. And that reason would be these cars are well-developed in every aspect – from the exterior down to the engine. And their above-par performance is worthy of the price. For example, a Mercedes-Benz has more horsepower than a Toyota.
Safety – Cars, regardless of being a luxury brand or not, need to be safe to use. When it comes to luxury cars, on the other hand, safety is also a top priority. Since mots luxury car manufacturers aim to perfect the car’s engineering aspects, it might as well perfect its safety features. The more pricey these cars are, the better the safety features. Or so it seems.
So, are luxury cars worth it? In so many ways, they are. They’re an investment that you can hang to. But it all boils down to what your budget dictates. And if you have a luxury car you want to sell, bring it to our auto inspection company to have it pre-inspected and sell it on your behalf. Click on the link to know more.