Here’s a little need-to-know information about luxury vehicles before you decide to purchase one.
10. What is a Luxury Vehicle?
The first thing you should know about luxury vehicles is what qualifies as one. You can do that by starting with the definition of the word “luxury.” A luxury is defined by The World Book Dictionary as “the comforts and beauties of life beyond what is really necessary.” A luxury vehicle, then, is a vehicle that has comforts and beauties beyond what it necessary. That being said, luxury cars sometimes come with some crazy features. Here are just a few of them:
-Fancy clocks that wind themselves and have a motor that can rotate it to keep it running
-Anti-paparazzi curtains in the rear seats
-A refrigerator between the rear seats
-A picnic table and a full picnic set
-Doors that open and close with the push of a button
9. Hyundai Makes a Luxury Car
Not all luxury cars are made by luxury brands. Some are made by non-luxury brands like Hyundai. And get this: in 2017 Hyundai’s luxury car –the Genesis — got better ratings than BMW or Porsche! The Hyundai Genesis is “one of the best-kept secrets in the U.S. luxury car market. Industry data show that relatively few upscale buyers even know the spin-off from mainstream South Korean carmaker Hyundai even exists,” NBC News reported.
Some other non-luxury brands that make luxury cars include Chevrolet (Impala Premier), Honda (Accord Touring), Kia (K900), Nissan (Maxima Platinum), Toyota (Avalon Limited), and Volkswagen (Arteon SEL Premium).
8. Some Luxury Cars Have a Low Resale Value
Looking at the price tags of some luxury cars, you’d think they’d yield a nice return on investment. Unfortunately, that couldn’t be any further from the truth. In fact, according to Investopedia, the resale value of luxury cars rapidly dwindles as they age. Not only that, but many of these cars lose much of their value as soon as you drive them off the lot! That being said, here are five luxury cars you might want to think twice about before purchasing them brand new:
Aston Martin Dapide S and DBS — The Aston Martin DBS convertible typically loses $170,000 of its $325,000-when-new value over just three years.
Bentley Arnage — You can purchase a used Bentley Arnage for 60 percent less than a new one — which will cost six figures.
BMW 7 Series — Models that sold for $70,000 brand new now go for as little as $10,000.
Jaguar XJ and XK — The value of the Jaguar XK drops 29 percent in just the first year of ownership.
Mercedes-Benz Maybach 57 — A 2004 model that sold for $300,000 brand new will now go for just $50,000.
7. Insurance is Expensive
According to Bankrate, luxury cars (and sports cars, too) are the most expensive to insure. So what makes luxury cars so expensive to insure anyway? Well, the high price for one thing. The fact that they’re more likely to be stolen also counts for the expensive insurance, as does the costly repairs associated with owning a luxury vehicle.
And, if you’re thinking about purchasing an exotic car — a subsection of luxury cars — beware. You might have a hard time finding an insurer who offers coverage for your type of vehicle. Exotic cars, which include Ferraris, Lamborghinis, McLarens, etc., are a huge risk for insurers due to their high price, costly repairs, and the high crash risk that comes from having very high horsepower. “If you own an exotic car, you should consider a collector car or specialty auto insurance policy. These policies often operate on an agreed value for your vehicle, meaning that you and your insurer decide a total payout price to replace your vehicle. This agreed value is the maximum amount you’re covered for, which eliminates disputes if your insurer has a lower evaluation of your exotic vehicle’s actual cash value than you would expect,” ValuePenguin.com said on its website.
6. They Can Be Affordable
Did you know that not all luxury vehicles are expensive? In fact, there are many ways to get your hands on an affordable one. One way is to get an off-lease used luxury car. According to BUSINESS INSIDER, off-lease used cars are a great way to get a nearly new car at a fraction of the price. Another way is to purchase one made by a non-luxury brand. The Nissan Maxima Platinum, for example, comes with leather seating that is heated and ventilated in front, a rear power sunshade, a panoramic moonroof, Bose premium audio, active noise cancellation, and quilted leather upholstery, among other features. And, all for a starting price of just $41,440. The Honda Accord Touring starts at just $34,990 and comes with a head-up display, leather seats that are heated both in front and in back, ventilated front seats, wireless charging, adaptive cruise control, lane-keeping assist, traffic sign recognition, and more.
5. They’re Pretty Safe
According to Florida-based dealership Boca Autohaus, one of the pros of owning a luxury car is that they are safe. “Luxury cars are usually and more often than not known to be safer than their cheaper counterparts. Luxury cars tend to offer more safety features than their non-deluxe alternatives including standard stability control, traction control, anti-lock braking systems, side front airbags, and curtain airbags,” the dealership said on its website. In fact, according to Consumer Reports, 44 percent of the vehicles chosen as top safety picks have an estimated base price higher than $30,000.
4. They Offer Better Performance
Luxury vehicles have better components and better handling, which in turn leads to better performance. And, they have plenty of horsepower, too. The 2015 BMW 5 series, for example, introduced its first model with 240 horsepower. On the higher end, the BMW M2 CS comes with a whopping 445 horsepower! And, if you do a quick search on Google, you’ll see that the new 2020 BMW M5 comes with 600 to 617 horsepower! But, be careful though. As we mentioned previously, very high horsepower carries with it a high crash risk.
3. They Have Consistent Quality
Luxury vehicles are known for their consistent quality — and this is precisely why many drivers purchase them. “To many shoppers, luxury cars offer better quality than mainstream models, whether it’s the interior surfaces or the materials they put in the doors and body,” Autotrader said on its website. “In many cases, that’s a valid argument. Many luxury cars offer improved surfaces, such as high-end leather upholstery and soft-touch plastics. And some are constructed better, providing increased safety in case of an accident.”
2. They May Have On-Demand Service
Did you know that Bentley has an on-demand service that lets you swap out your vehicle for another one? Yep, it’s true. If, for example, you happen to be going on a family road trip and your Bentley Continental doesn’t provide quite enough room, you can call up Bentley and they’ll send over a Mulsanne or some other model that has a bit more room. And, if you think that’s something, listen to this: Bugatti offers 24/7 concierge service that monitors your car and flies someone in to fix it if something happens to go wrong. Plus, you can also use the concierge service to find restaurants in a new city and make reservations.
1. You May Have to Pay Higher Fines for Traffic Violations
Depending on where you live, your luxury vehicle could result in higher fines for traffic violations. At least that’s the idea that officials are mulling in Singapore anyway. According to The Straits Times, Nominated Member of Parliament Walter Theseira suggested back in July that making motorists who own luxury vehicles pay more fines for the same offenses committed by those who drive cheaper cars would deter unsafe driving. “I think it reasonable to presume that the driver of a large luxury car is able to pay more than one driving a cheaper vehicle, and would likely regard the demerit points and other consequences of an offense as far more serious than the value of the fine itself,” Theseira said, according to The Straits Times. “In fact, insofar as many luxury cars are marketed as safer than less well-equipped cars, there is even more reason to increase the optimal fine as a deterrent, since the perceived risk of injury to the driver themselves will be lower and they may be more inclined to speed.”
Now that you are armed with this information, we hope that it brings you closer to your decision to purchase (or not purchase) a luxury vehicle. Thanks for reading! Feel free to leave a comment below.