Luxury cars have always been a symbol of wealth and status, but as the definition of luxury evolves, so do the costs associated with owning these vehicles. According to a Statista report, luxury vehicles can cost an average of $75,000, but the actual price can vary significantly depending on the brand and model. Some brands, such as Acura, Aston Martin, Audi, Bentley, Ferrari, Jaguar, Lamborghini, Lexus, Lincoln, Mercedes-Benz, Porsche, Tesla, and Volvo, have long been considered luxury.
As the line between luxury and non-luxury brands becomes increasingly blurred, it can be challenging to determine which luxury vehicles are worth the price tag. To help navigate this complex landscape, GOBankingRates reached out to automotive experts to identify luxury cars that may look and feel great to drive but could end up draining your bank account.
One such luxury car that comes with a hefty price tag is the Bugatti Veyron. With a starting MSRP upward of $1 million, this high-performance vehicle is renowned for its engineering and speed. However, the cost of ownership can quickly add up due to high maintenance costs, rapid depreciation, and expensive insurance premiums. According to Joe Giranda, director of sales and marketing for CFR Classic, routine annual servicing for the Bugatti Veyron can exceed $20,000, with tire replacements alone costing upward of $30,000.
Another luxury vehicle that can put a strain on your finances is the Rolls-Royce Phantom. With a starting MSRP of $505,750, maintenance costs for the Phantom can easily reach $5,000 annually. This luxury vehicle requires specific parts that are hard to find and expensive, leading to additional expenses. Additionally, insurance premiums for high-end vehicles like the Rolls-Royce Phantom can exceed $10,000 a year.
The Range Rover is another luxury vehicle known for its high maintenance and repair costs. With a starting MSRP of $109,025, Range Rovers are notorious for frequent and expensive mechanical failures, particularly with their air suspension, electrical systems, and engines. According to Geoff Cudd, a consumer advocate and automotive expert, the five-year cost of owning a 2024 Range Rover is estimated to be $169,621, including $60,604 in out-of-pocket expenses.
The BMW 7 Series sedan is also likely to drain your bank account, with a starting MSRP of $97,395. This flagship sedan offers luxury and performance but comes with substantial depreciation and expensive maintenance. From routine services like oil changes to parts replacements, BMW 7 owners can expect to spend thousands of dollars on repairs and maintenance. The five-year cost of owning a new BMW 7 Series vehicle is more than $128,000, according to Kelley Blue Book.
The Maserati Quattroporte, with a starting MSRP of $140,995, presents significant financial challenges for owners. Maintenance costs can reach around $2,000 annually, with additional expenses for repairs due to the car’s complex systems. The depreciation rate of Maseratis is also steep, leading to a significant loss in value over a short period.
The Audi A8, with a starting MSRP of $91,995, is a technologically advanced and comfortable sedan that demands frequent and costly maintenance. According to Cudd, the five-year cost of owning a 2024 Audi A8 is about $124,000, including nearly $61,000 in out-of-pocket expenses.
Finally, the Mercedes-Benz S-Class, with a starting MSRP of $118,450, is a sophisticated ride equipped with technology and intricate systems. However, this luxury vehicle comes with potentially expensive repairs and maintenance, alongside high depreciation costs. Annual maintenance and minor repairs for the S-Class can easily cost thousands of dollars, with major repairs being even more expensive.
In conclusion, owning a luxury car can be a significant financial commitment, with costs extending beyond the initial purchase price. Understanding the five-year cost of owning a vehicle can help you make an informed decision and choose a luxury car that fits your budget. While luxury vehicles may offer prestige and comfort, it’s essential to consider the long-term financial implications before making a purchase.