Why are luxury cars so expensive to maintain?

  • Ruud
  • 2020-11-01 09:13
  • 678
  • 1

Why are luxury cars so expensive to maintain?

Suppose you are thinking of buying a luxury vehicle or already have a new luxury car in your garage. In that case, the maintenance and repair costs of a luxury vehicle may take you by surprise if you are a first-time owner of that type of car.

Many drivers are unaware that the price tag on a luxury vehicle is only the beginning of costs that will affect a budget. Future repairs and even just routine maintenance of a luxury car can cost owners hundreds, if not thousands, a year.

If you want to learn why repair and maintenance costs are expensive for luxury vehicles and what high-performance car insurance you can get to reduce repair costs, read on. We give you a breakdown of exactly why luxury cars are so expensive and what exactly you need to combat those high maintenance costs.

Why Luxury Cars are Expensive to Maintain
Luxury cars are called luxury for a reason. These specialty cars aren’t mass-produced, so their purchase price is higher than generic cars like Honda or Toyota. The exclusivity of luxury vehicles means that when luxury cars need to be repaired, the service and parts will be more expensive than parts for generic vehicles.

According to Kelley Blue Book, luxury cars range anywhere from $40,000 to $100,000. At prices like these, even the need to repair just one part like a new bumper or steering system could cost a driver thousands of dollars to replace.

Specialty Replacement Parts
Luxury cars also have more gadgets and specialty parts than generic vehicles. For example, there may be heated steering wheels, backup cameras, advanced sound systems, and more. Additionally, many people like to customize their luxury cars to be even more special.

And of course, whenever you add more parts to a car, there are more parts that can break down. Then when parts do breakdown, it is usually necessary to have specialists work on the vehicle.

Normal repair shops may not be equipped or knowledgeable enough to repair all the parts of a luxury vehicle. You may have to bring your luxury car to the original manufacturer for more complex repairs. Naturally, this means that there will be higher bills to pay for repairs.

High Performance Wear and Tear
Another reason luxury cars are more expensive to maintain is that they generally suffer from more wear and tear if driven frequently. Owners usually drive high-performance vehicles faster and brake harder, meaning more wear and tear on brake pads and tires.

If not taken care of properly, such as getting the engine checked regularly and using the right kind of gas, there is greater potential for things to start breaking down.

Bottom line? Luxury cars are more expensive to maintain because they are, well, a luxury.

Anything with a high price tag will cost more to repair, and the many moving parts of luxury cars means greater potential for breakdowns. So if the wheels on your Ferrari aren’t mounted correctly, or your brakes are malfunctioning, you’ll end up paying for it later.

Mechanical Breakdown Insurance for Luxury Cars
What is mechanical breakdown insurance? Mechanical breakdown insurance is very similar to a car warranty. This insurance can be a way to cut down your luxury car repair costs to make luxury car ownership more affordable.

This type of insurance covers all car repairs outside of normal maintenance (such as oil changes and inspections) and normal wear and tear (including new tires or new brake pads). There is also usually a car insurance deductible on mechanical breakdown insurance unless you pay more to have a $0 deductible.

What is a car insurance deductible? A deductible is how much you agree to pay for car repairs after a breakdown. Once you’ve paid your deductible after a claim, your insurer will cover the rest. So if you have a $250 deductible on mechanical breakdown insurance, you will have to pay $250 towards repairs.

It is always useful to get a quoted repair estimate before you file a claim if you have a deductible.

Why? If repairs are estimated to cost $300, it doesn’t make sense to file a claim for only a $50 payout. But if repairs are estimated to cost $1,000, a claim should be filed, as your insurer will cover $750 of repairs.

What Mechanical Breakdown Insurance Covers
So what are some examples of what mechanical breakdown insurance covers? Some of the breakdowns that mechanical breakdown insurance will cover are:

Cooling and heating system breakdowns
Electrical breakdowns
Engine breakdowns
Exhaust breakdowns
Steering breakdowns
Suspension breakdowns
Transmission breakdowns

Make sure to check with your insurer to see what specific breakdowns are covered, as not all insurers will cover such a wide range of breakdowns.

Where to Buy Mechanical Breakdown Insurance
When shopping for mechanical breakdown insurance for your luxury car, it is important that you do not buy it through the manufacturer or car dealership. This is because it is often much more expensive to purchase mechanical breakdown insurance through a manufacturer or dealership, and these policies often do not cover as much as a policy through your insurer.

When bought through your insurer, mechanical breakdown insurance usually costs less than $100 when added to your pre-existing policy. This low rate means it may cost only a few extra dollars a month to add mechanical breakdown insurance to your coverage. The low cost makes it worthwhile for anyone with a new luxury car to add this coverage to their policy.

For example, an engine breakdown could cost you thousands of dollars to replace or repair, as most of the higher-end engines in luxury cars (such as a V8 engine) cost a minimum of $5,000 to replace. With mechanical breakdown insurance, you will only pay the deductible.
Offset the Maintenance Costs of Your Luxury Car
So if you are considering buying a luxury car but are worried about the cost, consider adding mechanical breakdown insurance to prevent huge bills after breakdown emergencies.

You can also help lower your rates if you take the time to shop around to find luxury cars that are more affordable and less prone to breakdowns. You may not want to, but taking the extra time to compare rates will definitely be worth it in the end.

Rachel Bodine is a car insurance expert who writes and researches for the car insurance comparison site, CarInsuranceComparison.com.

Comments on this article

Related news