Buying an Expensive Car- is it Worth it? Pros and Cons
Do you ever think of buying an expensive car for yourself? Is it really worth buying an expensive car considering all the crucial things?
Relax, I’ll tell you everything so that you can make your decision without any hassle.
I’ll also give a smart guideline and mention the pros and cons of buying an expensive car.
Is it Worth Buying an Expensive Car?
Buying an expensive car can be a good idea, but you should remember not to buy a car that costs more than 10-20% of your gross annual income. Also, you should consider buying a used car so you won’t lose too much money on depreciation.
It’s not a good idea to say yes or no when someone asks if it is worth buying an expensive car. The answer will depend on the customer’s objective and overall situation. Then a conclusion can help to make the final decision.
Some people need a car only for transportation purposes. It’s not a good decision for them to consider buying an expensive car.
You also need to think about the maintenance cost if you own an expensive car. The cost for your car maintenance shouldn’t affect your other things that are more important than an expensive car.
But an expensive car can help you in some exceptional ways towards your dream position or business. If these ways provide you more value with mental satisfaction, you should go for one.
It’ll contribute to your business development and brand value. The car you own silently says a lot of things about you and these create an impression among people. Everyone wants to work with somebody successful and exceptional.
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An expensive car uplifts your lifestyle to the next level among relatives and society. This creates more value for you among them with a classy representation.
Attention is important nowadays to stand out from millions of competitors. As your car resembles a part of you, it’ll help you draw people’s attention.
A quality expensive car will provide you quality and worth. It may give you a feeling of fulfilling one of your most important dreams.
There is no reason to forbid someone from buying an expensive car until it challenges any important thing of life. You can consider renting the exact same car you want to buy. If it suits you well and fulfills all of your desires, then don’t hesitate to go with your decision.
What Cars are Considered Expensive?
Cars having exceptional luxury features with limited editions are considered expensive. Rolls Royce, Bentley, BMW, Porsche, Mercedes, Audi, Jaguar, Ferrari are some of the common names when the question of an expensive car comes up.
Expensive cars just don’t come with a noteworthy price tag but also invention and class. The manufacturing process is faithful, smart, and powerful.
Adding a unique feature is a noteworthy part of expensive cars. You can see the starlight roof on Rolls Royce or the infotainment pack in Bentley. These features make expensive cars different from others.
Sometimes expensive cars come from less familiar brands like Pagani. More familiar brands like Bugatti and Aston Martin also bring expensive cars.
Premium materials or systems are another property of expensive cars. Leather air vents of Porsche or the scent system of Mercedes can easily add a new dimension to make them look exceptional.
Indeed, the price of an expensive car is much higher compared to others but there are some other major factors we should consider. Having solid build quality, unique features, exceptional looks, and noteworthy inventions also remain behind the expensive car to make it worthy.
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However, the car brand means nothing when you decide whether a car is too cheap or too expensive. If you really want to know if a car is too expensive for you, you should always make sure that a car that you want to buy doesn’t cost more than 20% of your gross annual income.
Some people say you shouldn’t buy a car that costs more than 10% of your annual income, but it’s a pretty conservative number. If you want to buy a car, keep 20% of your annual income in mind.
For example, if you make $50.000/year, you can spend a maximum of $10.000 on a car. If you make $75.000, you can buy a car for $15.000
Pros of Buying an Expensive Car
The pros of buying an expensive car can be stated as below :
- Leading Performance
- Better Safety
- Premium Build Quality
- Different from Others
- Perceived Value
- Status Reflector
Expensive cars offer some noteworthy pros that make them always one step ahead of others. If you consider them, you’ll probably find an answer behind their price.
- Leading Performance
Expensive cars don’t just look superior from the inside and outside, they also perform better. The performance of the engine and body design are two of the major parts where consumers can expect beyond their expectations.
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- Better Safety
Expensive cars don’t compromise when the question of safety comes. Most of them have airbags today with full complement. The anti-lock braking system, traction control, and noteworthy crash testing results are important safety characteristics of expensive cars.
- Premium Build Quality
Expensive cars come with a better build quality compared to other low-end cars. Their premium prices make it possible to allow them to use high-quality materials and smooth finishing.
- Different from Others
As many expensive cars aren’t produced on a large scale, it’ll allow you to join an exclusive club. You may own one in a town or city that increases your local fame.
- Perceived Value
It’s not a bad decision to spend more if you get value in return. Expensive cars contain a larger perceived value compared to others.
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There is no difference if we consider the basic functionality of an expensive car with other low-priced cars, but the details and the manufacturing process make the real difference.
- Status Reflector
An expensive car can reflect your status and class among the people of your society. It can represent you like a different one among the crowd. This will put value in your business as well as your brand.
Cons of Buying an Expensive Car
The cons of buying an expensive car can be stated as below:
1. Excess Fuel Cost
2. Larger Insurance Amount
3. Depreciation Issue
4. Costly Repair
5. Bigger Expense for Little Things
The cons related to an expensive car can make you think again even after taking your decision. You should consider these wisely before purchasing.
- Excess Fuel Cost
Sometimes you have to compromise with fuel economy while riding on expensive cars. A significant number of expensive cars require premium quality gas, not like the regular unleaded one. That means you should be prepared to spend an extra amount every time at the time of filling.
- Larger Insurance Amount
The insurance cost of an expensive car may surprise you. But it’s logical to have a larger insurance amount as the car costs a lot. You have to pay even more if you own an expensive sports car. The cost can vary from place to place, company to company.
- Depreciation Issue
Depreciation issue is very common for all kinds of cars whether it’s a budget-friendly or expensive one. It can take something like a larger bite when the question of expensive cars comes as the cost is high. The depreciation value will increase over time also.
- Costly Repair
An expensive car needs proper maintenance and care. Though sometimes you need to repair some parts of your vehicle. The price of the parts is high and it’s difficult to find a proper repair shop to do them. The reason is that the cars are limited and not every auto repairing shop can fix them.
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- Bigger Expense for Little Things
Little things in an expensive car will cost you a lot. Like you may need to buy a spare key or a new battery for your car.
The price of a spare key for your Mercedes can cost somewhere between $400. The regular battery price for a budget car can be $100 but you may need to pay $350 just for a battery if you own an expensive one.
How to Buy an Expensive Car Smartly?
It’s important to be smart while buying an expensive car. Wise consideration about some crucial things like the condition of the car, depreciation value, popular color, best time for buying, payment method, etc. can help you to buy your car smartly.
Depreciation is something you can’t ignore. But you can choose to make it higher or lower. As brand new cars depreciate much, you can consider buying a used luxury car to make the rate of depreciation lower.
Color is an important thing for expensive cars. Some colors are worth an extra amount compared to others that aren’t popular.
Make a list of the popular colors available for expensive cars and then choose one that you like the most. Remember, your choice is also important.
It’s a good decision to buy an expensive car when you have proper cash flow. The flexible payment method is also a matter of importance while buying a car.
Choosing when to buy an expensive car is a significant thing to consider. At the end of the year, car dealers plan to furnish their shop with new ones.
Buying an expensive car in December can save you a lot as you’ll find to manage yourself by saving a decent amount.
What are the best and worst months to buy a car? More about it in this article.
You may see some car advertisements based on the holiday or special occasions. If you buy your car at that specific time or period, getting a bigger amount of discounts is possible.
Try to avoid buying cars in the early stage of a year as prices remain high because of the newly available models.
