Reasons for High Cost

Reasons for High Cost

by admin, March 19, 2020

Reasons for High Cost

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Luxury cars are considered luxury partially because of their cost. It costs a lot more money to buy and maintain a luxury car than it is a regular car. But why? Well there are two answers to this question. Luxury cars cost more because they use high performing materials which requires more talented workers and because luxury cars often come in smaller batch sizes. 

For example, Porsche and Mercedes-Benz are two luxury car brands that are significantly more expensive compared to a Honda or a Toyota. This is because Porsches and Mercedes-Benz’ are specifically designed for performance. Hondas and Toyotas take repairs into account. But cars like a Porsche and Mercedes-Benz require auto shops to drop the engine to do most repairs. This means more expensive parts to replace the high performing materials that are not working AND more expensive labor costs because it takes more time to fix most repairs. 

Another reason why luxury cars are more expensive is because of their limited production volumes. Luxury cars are more expensive because customers are paying for exclusivity. The more exclusive the car, the more the automaker has to charge for design, development, and assembly costs. Driving a luxury car has so much to do with class, fame, and prestigiousness and this is why brands like Porsche and Mercedes-Benz have such a high price point. Basically, there is a reason why you do not see just anyone driving around in a Porsche or a Mercedes-Benz. 

High performance materials cost more. Exclusivity costs more. But you will get what you pay for as almost all Porsche and Mercedes-Benz owners love their ride and what it means when they drive past everyone else.

For more information on luxury cars like Porsche and Mercedes-Benz stay updated on our blog or visit us at Midtown Autoworks today!