If you’re in the market for a car, and you have a substantial budget to draw from, then you’ll be faced with an enviable range of options. At the high end of the market, manufacturers are able to offer a series of features that can make the difference to your life behind the wheel – and that’s on top of the vastly superior build quality.
But a car can be something of a liability, financially speaking. If we’re going to spend tens of thousands, or even hundreds of thousands, of pounds on a single vehicle, can we really justify that outlay?
Luxury Car Features: Assessing the Extravagance
If you’re paying for a luxury car, then there are certain modern features that might really be worthwhile in terms of your driving experience.
If you’re buying a larger vehicle, then parking assistance is something worth having. Parking sensors at the rear should be considered obligatory, unless you’re looking at a classic luxury car. But parking video and all-around displays can make the job of parking even a very large vehicle effortless.
On top of this, we might look at safety and driving convenience features, like adaptive cruise control, automatic braking, lane assistance, and driver fatigue warnings. These subtly take the stress and effort out of driving.
As we’ve mentioned, luxury cars also tend to be made from more prestigious materials, and built to more exacting standards. In some cases, they’re even handmade. This difference can be obvious when you come to actually use the vehicle. When things like doors and windows move seamlessly, the resulting impression of luxury can be difficult to shake.
Depreciation and Resale Value
Depreciation is particularly acute during the first few months and years of a car’s lifespan. If you’re buying new, in other words, it’s going to be a fact of life.
One advantage of a prestigious, luxury brand is that it will tend to hold its value much better. Potential buyers on the used market will assign more value to a BMW or Mercedes than they do a Kia.
If you’re worried about falling into negative equity, then you might consider gap (that’s Guaranteed Asset Protection) insurance. What is gap insurance? It’s a way of covering you for the value of the car as it was new, rather than its value at the point you made the claim.
Balancing Opulence and Ongoing Expenses
In the case of second-hand classic cars, you might even find that the value of the car holds over time – provided that it’s kept in good condition. Naturally, however, you’ll need to spend time and money keeping the car in good condition.
Servicing, repairs and replacements all tend to be that little bit more expensive in the case of a luxury car. Not only are the components more expensive, but the expertise to fit them is rarer. If you have a very expensive car, then it pays to have an expert look at it when the time comes.
All of this has implications for your insurer. The more expensive the car is to maintain, the more risk it confers. You can expect this to be reflected in your premiums.