Some drivers are perfectly happy with a reliable sedan from a top-rated automaker, but others who are fans of a particular type of vehicle may gravitate toward buying a luxury car or other similar vehicle based on its brand-name appeal. Here are some things to keep in mind about the buying and selling of specialty luxury or sports vehicles.
Taxes and Insurance
Apart from the high sticker price of a luxury vehicle, there are also some hidden costs. The auto sales tax is the same for any vehicle according to its sale price. However, the insurance costs differ, and specialty vehicles such as exotic or luxury cars often carry a much higher insurance risk, and therefore, take a lot more money to insure. To figure out just how much, a car shopper may want to check in with an insurance company before buying the Jaguar, Porsche or other specialty car they have their eye on.
Another consideration for a specialty vehicle is what kind of relationship you have with local mechanics. In some cases, drivers may even find that there are no qualified mechanics at all in their area who will take on the specialized task of dealing with an exotic or luxury vehicle. Take a look before buying and figure out if there is a skilled mechanic in your area who you can trust with the car on an ongoing basis. It may also be pretty hard to order parts for a specialty or luxury vehicle, in which case some experts recommend keeping a "spare" on hand. In other words, if a car shopper can find 2 of the same custom vehicle, he or she can harvest parts from one in order to keep the other in good roadworthy condition.
Some specialty and luxury cars hold their value better than others. A lot also depends on the economic climate at the time of resale. Buyers should know that resale value for specialty and luxury cars fluctuates a bit more than those standard prices for your everyday sedan or truck. Anyone who has seen a Mercedes of a prior decade parked in someone's front lawn can see that resale prices for these vehicles are not always high.
For those who need to have the high performance and glamorous image of a luxury car or vehicle, there's always the option of leasing. Specific lease terms and agreements for these vehicles may include extended warranties that can help out with the maintenance issue, and leasing also takes the burden of resale off of the driver. Leasing is a very valid option for those specific vehicles that individual driver may want to boost his or her image, where buying can turn out to be very costly experience.
Keep the above considerations in mind when deciding if a luxury vehicle is worth it for you.
Related Questions and Answers
What is Considered an Entry Level Luxury Car?
An entry level luxury car is smaller than a normal family car and it can be smaller than a compact car too. They are the cheapest in the luxury car segment and the most common models that are sold by reliable manufacturers include coupes, saloons, estates, and cabriolets. Although these cars are rated as luxury cars, they are sold with less equipment, less interior room and engine horsepower accounting for their slightly lower price tag. This is compensated by the fact that you get high quality design and manufacturing standards from the same high class company. For example, BMW sells over 40% of its cars in this category worldwide accounting for its popularity and sales.
What are the Most Popular Luxury Car Makers?
Luxury car makers manufacture cars that have additional features which are not essential to the working of the car. But these additional features do add to the car value due to the high standards of construction, design ingenuity, and engine performance. All these features add to the status value of the car and the brand image of the car owner. There are several car brands that fall in the makes of cars in this range. They are:
- Rolls Royce
- Aston Martin
These car companies will make high performance cars that are listed as exotic brands, and whose value will exceed $100,000. Although these are just a few of the car makers, there are other companies that make slightly higher priced cars. Like Ferrari, Lamborghini and Porsche, but these are not considered in the luxury car category.