We’ve all been there- you’re driving your nice, sensible, and economical car when you see a bright yellow sports car or pimped-out luxury SUV and start fantasizing about owning and driving such a vehicle. But before you get too carried away, you might want to consider these 19 excellent reasons not to splurge on that enticing high-end vehicle, even if your bank account says that (technically) you could afford it.
Depreciation
Luxury cars fresh from the forecourt are tempting, but according to Edmunds, brand-new luxury cars tend to depreciate more rapidly than everyday vehicles- by as much as 50% or more within three years of purchase. Such a steep drop in value will result in significant financial losses should you choose not to keep such a car for the long term.
Higher Insurance Costs
Owning a high-value, high-end vehicle that not only has extraordinary performance but is more expensive to repair should it be damaged, can really send your insurance premiums skyrocketing. Market Watch states that a Mercedes (considered a luxury brand) costs far more to insure than a more standard Honda.
Maintenance Expenses
Car Edge reports that luxury cars like Porsche, BMW, and Jaguar are the most expensive to maintain. They often require specialized, difficult-to-source parts and are more sensitive to damage should sub-standard or generic alternatives be used. This means even a simple routine service is going to cost you more.
Fuel Efficiency
Luxury vehicles are aimed at people with enough disposable income that they don’t need to worry too much about fuel efficiency. Many high-performance sports cars with massive engines are (unsurprisingly) total gas guzzlers, but Car & Driver also warns that luxury SUVs from the likes of Bentley and Rolls Royce also drain the tank quickly.
Limited Practicality
Dream cars are often designed for performance and style, so they often lack practicality in everyday use. While a Lotus Elise sports car may look exciting and be fantastic to drive, you won’t be able to fit your suitcase in the trunk or carry more than one very agile passenger (Road & Track).
Interest Rates
Because dream cars are expensive, you may need to finance your car, but the interest rate you receive will vary greatly depending on your credit score, loan amount, and chosen lender. Luxury car loans often come with greater interest rates, seriously increasing the total cost of the vehicle by the time you’ve actually paid for it.
Lost Investment Opportunity
Unless you’re buying something incredibly rare or antique, a luxury vehicle will always be worth less as it ages and is a poor investment choice (Visual Capitalist). The money you use to purchase it could be otherwise invested and yield a high return- definitely a more lucrative investment than a depreciating asset like a luxury car.
Safety
High-performance vehicles with rapid acceleration, advanced handling capabilities, and extreme top speeds are tempting to drive dangerously- making you more likely to be harmed in a car accident. Medium reports that the most dangerous car is the Porsche Carrera GT, which packs so much raw power that only experienced drivers can handle it safely.
Limited Space
This doesn’t apply to luxury SUVs and sedans, but it sure applies to luxury sports cars like Ferraris. Such exotic, high-end performance cars are made to be fun to drive at high speed, so weight is often reduced to make them faster. Consequently, you won’t have much headroom, a back seat, or even anywhere to put your smartphone!
High Taxes
VINN reports that luxury cars over a certain purchase price are subject to additional taxes dependent on where you live and the vehicle’s value. It’s crucial to make sure you can afford to purchase the car and pay the associated taxes before buying it; otherwise, you might be left unexpectedly broke!
Parking Concerns
Having something expensive and beautiful feels terrific, but worrying about where to leave it safely can be stressful. Finding suitable parking for a gigantic luxury SUV or wide-bonneted sports car can be especially difficult in crowded urban areas, plus the fear of them being vandalized or stolen can cause anxiety.
Environmental Impact
As with fuel efficiency, high-performance cars, and fully loaded SUVs aren’t built with reduced carbon emissions in mind. Even if you can afford the increased fuel costs, your environmental conscience might dissuade you from purchasing a vehicle that will contribute to air pollution far more than a standard hybrid or economical super-mini.
Attention Magnet
If you don’t love being the center of attention, that acid-green Lamborghini may not be the best choice! According to Faster Capital, luxury sports cars are a status symbol that others will admire and envy, meaning you’ll be bound to turn heads. So, if keeping a low profile is important to you, you might want to go for something more ordinary.
Road Conditions
Some of the most iconic sports cars have extremely low ground clearance and stiff suspensions, making them uncomfortable and difficult to drive on anything other than smooth, flat tarmac. This makes rough roads, speed humps, and potholes particularly problematic and may even cause damage to a low-riding vehicle.
High Theft Risk
Even if grabbing public attention is your thing, some attention will be particularly unwanted. Thieves often target expensive, stand-out luxury cars due to their high value and head-turning appearance. This can cause anxiety over your vehicle’s security and result in higher insurance premiums.
Lifestyle Expectations
Owning a high-end vehicle can elevate your perceived financial status and put you in contact with wealthier people. So, if your more standard home and regular store-bought clothes don’t match your splurged-on vehicle, you may feel pressure to maintain a more luxurious lifestyle- which can seriously impact your finances.
Tire Costs
High-performance vehicles require specialized tires, which are often more expensive and require being replaced more frequently. You need to have appropriate tires with sufficient tread for safe driving, so consider such extra expenses when deciding whether to purchase your dream car.
Maintenance Downtime
Rare or exotic cars with unusual badges may make you original and stylish, but you’ll likely end up driving a hire car for extended periods whenever your vehicle is in the shop. The difficulty in sourcing unique, specialized components means even a simple repair can take weeks of waiting for parts to arrive from abroad, causing inconvenience and extra cost.
Resale Value
Luxury cars typically fetch a lower resale value than their initial purchase price. As soon as you drive that Mercedes off the forecourt, it’s worth far less, and its value falls faster every year compared to more everyday vehicles. If you plan to replace your vehicle regularly, consider a less prestigious brand.
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