Costs and Benefits: Are Luxury Cars Worth the Hype Surrounding Them?

What makes a car luxurious? Leather interior, gorgeous design… plush carpet? Aside from lavish amenities, luxury cars are considered to be so because of the prestige that comes with the name.

A car’s main purpose is to get you from point A to point B (safely, of course) so is a luxury car a necessity? Well, most luxury cars offer some of the best safety features as well as a smoother ride— and the price reflects that.

Some people may even suggest that having a car is a luxury in itself, but for others, it is a necessity. Here are some of the costs and benefits of owning a luxury car.

The Actual Cost of Luxury Cars

Luxury car brands can be categorized into high-end and low-end, depending on the price. Some of the most expensive cars in the world include Lamborghinis and Bugattis, with models costing millions of dollars. 

Even the cheapest Lamborghini costs hundreds of thousands of dollars, while the cheapest 2021 Bugatti still costs over one million dollars! We’ll leave these at the super high-end of the luxury car spectrum.

Prices

Here are the cost ranges of some popular luxury car brands for a 2021 model:

• Audi: $39,000-$49,000
• BMW: $36,000-$56,000
• Cadillac: $36,00-$80,000
• Lexus: $35,000-$90,000
• Mercedes: $36,000-160,000
• Porsche: $60,000-$101,000

These are only a few luxury car brands, some with lower-end prices being the same as non-luxury vehicles. This doesn’t include Tesla, which is famous for having only electric cars. Tesla cars usually range from about $40,000 to $124,000.

Insurance

Car insurance is a very necessary thing, with rates based on many different factors. One of those factors is the make and model of a car. Luxury cars usually cost more to insure than regular cars, due to the fact that they are equipped with top-of-the-line safety features. They’re just all-around more expensive, so they cost more to fix if they’ve been damaged in a wreck.

A 2021 model is going to cost more than a 2016 or older. Generally, the less expensive a car is, the less the insurance— but not always. Keep in mind that other factors go into determining insurance rates, so it’s best to compare car insurance quotes to find out exactly how much you’ll be paying.

The Benefits of Luxury Cars

Now it’s not bad to own a luxury car, it’s just that there are some downsides. There are, however, benefits to owning a luxury car, too.

Technology

As mentioned before, luxury cars have some of the best safety features on the market. Some of these include backup cameras, blind-spot warnings, automatic lane-keeping, and curtain airbags.

Other high-end technology offerings include push-to-start, Bluetooth connection, wireless charging, built-in navigation, and heated/cooling seats and steering wheels. Of course, other non-luxury brands offer these types of technologies too. But why not treat yourself?

Resale Value

The value of your car decreases as soon as you drive off the lot; that’s just how it is. But since luxury cars already sell on the higher-end, they’re more likely to have a higher resale value. Also, when it comes to luxury cars, a lot of people tend to buy used or lease them.

So, should you get a luxury car? Well, it really all depends on what you can afford. You don’t necessarily need the newest model on the lot, but that can apply to non-luxury cars as well. Just be aware that insurance rates are likely to be higher, so comparing them is a must. Customizations and add-ons will cost you more too (upfront and on the insurance end, but that holds true with non-luxury cars too.

Safety is a necessity, but more and more affordable brands are offering impressive safety features too. Some of the lines are becoming blurred when it comes to luxury vs. non-luxury vehicles (excluding the extremely lavish), so for some brands, it’s all about prestige and exclusivity.