3 Reasons Why German Cars are so Expensive

Germany is highly popular all over the world for its luxurious, high-performance, and efficiently engineered cars. But they are considered to be expensive also compared to other popular brands. So, what are the reasons behind this kind of high price? 

In this article, I’ll discuss the top 3 reasons for which German cars are so expensive. I’ll also give an idea about the cost of having a German car and some alternatives to German cars.

Why Are German Cars So Expensive?

The average starting price of BMW, Mercedes-Benz, Audi, and Porsche is $45,600, $60,000, $70,000, and $175,000 respectively. They’re the most famous automotive manufacturers in Germany, and the price itself talks about how expensive they’re. But what are the reasons behind this huge amount that you need to pay to have one?

Superior build quality, ensuring extreme comfortability, using premium parts and modern technology, excellent engines for incredible performance, and strong position in the market are the main reasons to have the expensive price range of most German cars. 

Also read: Mercedes vs. BMW- Which is Cheaper to Maintain?

Let’s talk about the 3 most important reasons to get a clear idea about why German cars are so expensive.

  1. Superior Build Quality & Comfortability

It’s hard to beat German cars when the concern related to the build quality comes. Ensuring the best quality is the priority for interior finishing, paint, metal sheet, and rubber in German cars. 

If you consider BMW, one of the most famous luxury vehicles companies in the world, they provide durable and reliable buttons, knobs, handles in most of their basic models also. This kind of practice gives a clear idea about the superiority of higher-end models in terms of build quality. 

German cars never compromise to ensure a long, comfortable journey. Great cabin insulation, supportive seats, and effective suspension systems are some of their noteworthy features to maintain comfortability. 

Also read: Are German Cars Expensive to Maintain? How Exactly?

Volkswagen Vento can easily maintain 160 kilometers per hour having just a few vibrations of the engine and other body parts. The amount of vibration is less enough to put any effect on the comfortable ride, and it’s difficult to guess the heavy speed. 

Where some economic cars like Toyota provide interiors made of cloth, vehicles from BMW come with leather interiors finished with high-quality materials to confirm the ultimate comfortable experience while driving.

  1. Use of Premium Parts & Technology

German cars from BMW, Audi, Mercedes-Benz, Porsche use premium parts in every sector of their expensive vehicles. Their high-end range contains parts that are too high quality, too expensive and no wonder that not all mechanics can fix these kinds of cars.

Using advanced technology in vehicles is one of the main reasons behind the expensiveness of German cars. This kind of practice is necessary to provide luxury and every possible facility while driving. 

Mercedes is well known for providing cutting-edge technology for a long time in their vehicles. It generally takes a long time, effort, research, development, and of course money to integrate new features and technologies. 

If you know Audi, you may know about Quattro. Quattro technology implemented in the vehicles from Audi gives safety and dynamism ensuring unique pleasure at the time of driving.

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  1. Incredible Performance & Market Position

Performance is the segment where German cars never compromise. It’s a common practice for most German cars to use high-performance and refined engines that can provide ultimate performance. 

There is no doubt that incredible performance isn’t possible without a solid, high-end engine. It’s a very expensive process to ensure high-end engine and engine-related components. This is one of the main areas where German car manufacturers spend a lot considering the overall price.

The BMW 3 Series of 2022 can do 0-60 in just 5.3 seconds. Amazingly, the 3 series is one of their slower models and some flagships of BMW can do it below 3 seconds. 

Most of the German car manufacturers like BMW, Mercedes-Benz, Porsche, Audi target higher-income customers, ensuring maximum possible luxuries. The price ranges also go higher considering higher-income customers. 

German automobile manufacturers earn a reputation all over the world for their reliability, quality, and of course luxury. It’s expensive to maintain the reputation of providing quality and premium components throughout the journey. 

And they are trying to go beyond every day by effective experimentation and research to provide ultimate satisfaction to their very own customers.

How Expensive are German Cars Compared to Other Car Brands?

German cars are more expensive compared to automobiles from other countries. Sedans from BMW 3 Series come with a starting price range of $49,350 and PHEV starts with a price range of $44,950. Japanese popular car brand Toyota offers Corolla at a starting price of $20,075. Ford is an American automobile manufacturer and their popular Ford Fusion costs $23,170 in starting. Kia Optima starts with a price range of $23,390.

What are the Costs of Having a German Car?

Let’s have a look to get an idea about different types of costs to have a German car

  1. BMW X1
  • Purchase Price: Starting from $50,895
  • Depreciation: 6.92% per year on average 
  • Maintenance & Repair Cost: $915 per year
  • Fuel Cost: $2,200 per year
  • Insurance Cost: $1,570 per year on average for full coverage
  1. Audi A6
  • Purchase Price: $52,000
  • Depreciation: 6% per year on average 
  • Maintenance Cost: $913 per year
  • Fuel Cost: $2,100 per year
  • Insurance Cost: $1,926 per year on average
  1. Mercedes GLC
  • Purchase Price: 68,000
  • Depreciation: 6% per year on average 
  • Maintenance Cost: $1,442 per year on average considering the first 10 years
  • Fuel Cost: $2,800 per year
  • Insurance Cost: $2257 per year on average

Comparison with other popular non-German cars

  1. Toyota Corolla 
  • Purchase Price: Starting from $20,025
  • Depreciation: 4.6% per year on average 
  • Maintenance Cost: $650 per year on average 
  • Fuel Cost: $1,450
  • Insurance Cost: $1,273 per year on average
  1. Honda Civic
  • Purchase Price: Starting from $21,700
  • Depreciation: 5.5% per year on average 
  • Maintenance Cost: $525 per year on average 
  • Fuel Cost: $1550 per year on average 
  • Insurance Cost: $1,420 per year on average

Also read: Are German Cars the Best in the World? ALL Pros & Cons

Are German Cars Overpriced?

German cars are manufactured generally considering the higher-income people, as the manufacturers spend most of their money to ensure an extreme level of luxury and performance. If you need a car for your daily purposes and don’t want to spend too much on maintenance and also want a good resale value, then German cars can be said to be an overpriced deal for you.

The average starting price of the most popular SUV from Toyota is about $28,000, and it’s possible to find a popular Toyota Sedan at a starting price of about $21,000.

But when you come to some of the most popular German car manufacturers like BMW, Audi, Mercedes-Benz, Porsche; the average starting price range can differ from $45,000 to $175,000. So, German cars may seem to be overpriced considering vehicles from other countries. 

Also read: BMW vs Audi: (Head-to-Head Depreciation)

Which German Car Should You Buy if You Don’t Want to Lose Too Much Money?

German cars have a bad reputation for losing their values, much more than some other brands. But not all of them have lower resale values. There are German cars available for you if you don’t want to lose too much money over time.

The BMW 2 Series, the lowest priced model, holds value better than the 3 and 5 series. The BMW 2 Series is exceptional with performance and a lower depreciation rate. It can be a good choice if the resale value in German cars is your concern, and you don’t have enough objections with a smaller back seat.

There are some other specific German cars like BMW X5, Mercedes-Benz GLE, Mercedes-Benz GLC, Audi Q5, BMW X4, Audi Q7, BMW X3, Porsche Cayenne, etc. that can be considered as luxury German vehicles with the lowest depreciation rate.

What are the Cheaper Alternatives for German Cars?

German cars are generally considered expensive for their luxurious features. But there are alternatives to German cars if you do good research. 

Chrysler 300S can be an alternative for Mercedes-Benz E400. Where the Mercedes-Benz E400 comes with a starting price of $63,100, Chrysler 300S costs $38,470 having more power and gears with more passenger space.

Porsche Cayman is a rewarding car with excellent chassis balance, incredible engine, and fancy steering control. The Cayman from Porsche costs more than $50,000. With a half-price range, Subaru BRZ is a feasible alternative for you. 
The BMW M4 costs about $65,700 where the Ford Mustang GT, a wise alternative for BMW M4 comes with a price range of $32,395.