Thinking about buying a luxury car? But have you considered the hidden costs of owning a luxury car that the auto manufacturers don’t want you to know?
Owning a luxury car is a lot different than driving around in a regular car. There are a ton of factors that make a luxury car more expensive than a regular car. As far as manufacturing of a luxury car(like Audi A7 or Kia K9) is concerned, the auto engineers design and built them keeping a high ticket customer in mind. Notably, someone who has enough money not to care about the high maintenance costs.
Luxury car manufacturers do not entertain ideas that involve cost-cutting or use of below-par pieces of equipment. In addition, they use high-grade Brembo brakes(which cost $9000 each brake) and drivetrain engines.
Here are a few hidden costs of a luxury car that the auto-manufacturers don’t want you to know.
1. On-board navigation
On-board navigation systems are used to sift through traffic or locate a particular destination. It is a screen that shows a map along with directions. It guides the driver to the destination without him having to do much work.
These days, a regular car driver can also navigate perfectly with the help of Google maps mobile app but an on-board navigation system takes the experience to a whole nother level. It integrates with the car very well and provides a better GPS signal.
2. Dashboard Cameras
Dashboard Cameras are also known as Dash-Cams or Event Data Recorder (EDR) are cameras that continuously record the events happening in the front and the rear end of the vehicle. They are used for both diving assistance and drivers security.
Recently a car driver recorded a horrific accident in which two bikers collided on a bridge. This incident happened in Florida. Without the dashcam, no one would have known what happened and who was responsible for the accident.
Cost: $200 per camera
3. Maintenance and Repairs
Generally speaking, 1-2 percent of the total car cost should be assigned to annual maintenance and repairs of the car. The above number stands true only for new cars. The older you car get(more than 5 years of use), the higher the percentage you should assign to its maintenance and repairs.
Cost: It depends on how expensive the car is. $680-$1360 for Audi A7.
High monthly premium payment is quite justified for a luxury car owner. More expensive the car, the more the costs of spare parts. Your car insurance company is responsible to pay for any damages to your car, they are the ones who are bearing the risk, so they will want more money from you.
Secondly, they also know that you are good with money. You have your finances sorted out. Why wouldn’t you pay high premiums on car insurance?
Cost: $1,488 per year(Audi A7) and $2,240.40 a year(Kia K9)
Buying a luxury car only makes sense if you are financially prepared to splash money on things that you may not have before. The above-mentioned factors are just the tip of the iceberg, the older your car gets, the more maintenance and repairs it needs. So, do not buy a luxury car just to impress your friends or raise your social value.