Buying a new car can be incredibly exciting and can open up a whole new world of possibilities. There are so many vehicles on the market, and no matter what your needs are, you are sure to find something that will suit your particular driving style, aesthetic, and personal preferences. If you have been looking at higher-end models or luxury cars, though, you may have been shocked by the price. That being said, there are good reasons for higher MSRPs on these luxurious, premium vehicles.

The most expensive cars to maintain may not seem like a good investment. Many luxury vehicles will lose a large portion of their value as soon as you drive them off the lot. A premium vehicle, though, can truly offer a unique experience to the driver, and the higher price is more often than not well worth it when it comes to comfort, tech, and driveability. Knowing what makes a luxury car expensive and why it still might be a great idea to buy one can help you make the right decision and drive off the lot in comfort and style.

History and Heritage

Many times, the things you are paying for when you pay a premium price for a car are the history and heritage of a particular automaker. Classic brands like Range Rover, Rolls-Royce, Cadillac, and Bentley have a reputation for being costly, but this is well-deserved. These brands have been producing models that have consistently been a favorite of high-end customers and luxury vehicle fans. With a reputation for innovations in comfort and smooth driving, it is no mystery why these automakers are valued for their history of success.

Sometimes, a brand’s heritage in the automotive world is enough to drive prices higher than other vehicles. For example, Bentley has a prestigious heritage in both the European and American automobile markets. The name is synonymous with comfort and luxury. Because of this, the brand will always appeal to the high-end demographic. Since these are the customers Bentley has been making vehicles for throughout its existence, they can fetch higher prices than a typical economy car off the lot.

Engineering and Performance

More often than not, a high-end vehicle will be more expensive because its performance is much better than other vehicles on the market. A Mercedes-Benz S-Class, long known as one of the most sought-after vehicles for prestigious buyers, has an available twin-turbo 4.0-liter V8 engine, putting out 469 horsepower in the 2023 model. Not only does the exterior exude class and luxury, but there is also enough power under the hood to make it fun to drive. This kind of combination of power and beauty makes the S-Class an expensive luxury car that earns its price tag.

Luxury cars are also generally engineered in clever and sometimes truly breathtaking ways. BMW, for example, has always had a reputation for its brilliant German engineering style, and this is incredibly obvious in its higher-end vehicles like the BMW 5 Series. The 5 Series has been setting the standard for how a luxury sedan should handle on the road for many years. With its responsive, light touch at the wheel and finely tuned suspension, it manages to walk the line between comfort and performance, which is incredibly difficult. While you can expect to pay a high price for this kind of design work, it may be worth it to the right driver.

Quality of Materials

Perhaps one of the biggest contributors to the higher price of luxury and exotic vehicles is the better quality of the materials that are used. You can expect a higher-end luxury car to use materials in the interior and on the exterior that would not be used on a lower-tier economy car like a Honda Accord or Toyota Corolla. Things like leather seats instead of cloth and open-pore wood trim on the dashboard are standard for luxury vehicles and give the car a touch of craftsmanship and comfort that can take the feel of the vehicle to the next level.

High-quality materials are not just used on the interior of luxury vehicles, though. You will also most likely find materials like alloy and carbon fiber on the exterior. The use of materials like these is meant to improve performance through a tougher constitution or a lower curb weight and can give a vehicle better longevity as well as more responsive handling. Whenever better materials are used in a car’s construction, the price tag goes up significantly. You will also notice an increase in performance and feel, though, which can justify the cost in many ways.

Innovative Technology

When shopping for a luxury vehicle or supercar, you can expect to find technology that won’t be included in cheaper models. Oftentimes, this tech will be most apparent when it comes to the infotainment system that is included. The Genesis G80, for example, comes with a massive 14.5-inch touchscreen that controls things like Apple CarPlay and Android Auto as well as navigation and vehicle settings. While many cars these days come with a touchscreen infotainment system, they are usually around half this size, so you are getting a lot more digital real estate for the higher price.

Sometimes, a vehicle will be more expensive because the tech included is entirely new and simply won’t be found in cheaper cars. The 2024 BMW 7 Series comes with something called the Theater Screen. This is a 31.3-inch widescreen that comes down from the ceiling of the car for a rear-seat entertainment option. It uses the cellular hotspot in the car to stream entertainment apps and other options, and the touchscreen controls are integrated into the door panels. This kind of system is brand new in vehicles and explains the six-figure MSRP that you can expect from a new 7 Series.

Exclusivity and Brand Value

It is important to remember that sometimes an automaker can charge more for a vehicle simply because it has an exclusivity that other vehicles don’t. If an automaker is producing fewer models than other brands, this means that it costs more to produce each one. The automobile industry is heavily dependent on scaling, and if you are going to purchase a car that is fairly rare, you are going to pay a lot more for it. This is why when automakers create special editions of certain models, their prices are much higher than the standard version of the same car.

Brand value will also play a big part in how much a certain vehicle costs. Some automotive industry companies have prestige that is incredibly valuable on the market. Brands like Aston Martin, Ferrari, and Lamborghini are names that are synonymous with performance and style. While you will certainly be getting specs and features that are on the higher-quality end of the spectrum with these car companies, you are also paying for the name.

Aesthetic Design and Craftsmanship

Many luxury automobiles have a look that is unique and sets certain vehicles apart from the other cars on the road. The Audi A8, with its long, low profile, is a very interesting-looking vehicle and something that will certainly turn heads on the road. The same goes for the Porsche Panamera and the Taycan, both of which combine Porsche’s classic look with a sleek, modern twist. Because of these different design choices, these cars are much more expensive than other vehicles that won’t stand out on the road.

When you purchase a luxury vehicle, you can also count on the craftsmanship to be at a higher level than it would be with a cheaper vehicle. Things like stitching, welding, and other joinery within the vehicle will almost always be of a much higher quality. This gives you better longevity and ensures that you don’t get rips in the seats or broken body trim like you would with a lower-end car.

After-Sales Services and Benefits

The purchase of a luxury car includes more than just a high-quality vehicle and the prestige of the branding. Many luxury dealers will also include after-sales benefits that you can use to help keep the vehicle in good condition for a lot longer. Things like maintenance coverage and scheduled service can be a great way to keep your car looking and running its best for many years after you have purchased it.

Many of the after-sales benefits that come with a luxury car will continue for years after the purchase. When these benefits run out, though, you want to be sure that you are covered in the event that you have to get repairs done or bring your vehicle in for service. Having an extended warranty, which is more accurately called a vehicle service contract, or VSC, from a trusted third-party provider is a great way to get the peace of mind you need that your vehicle is protected. The right VSC provider will be able to cover your luxury vehicle and help you feel confident whenever you get behind the wheel.

Protect Your Car With Endurance No Matter How High-End It Is

If you are in the market for a luxury car, it is important to know what you can expect when it comes to the price tag. Knowing why some luxury SUVs or cars are so expensive can help you make the right choice for your needs and your budget. High-end vehicles have a lot to offer beyond just comfort, and getting the full picture of what is included with the cost is a great way to make a smart purchase.

If you want to protect your luxury vehicle and keep it running and looking great, Endurance offers customizable plans for first-time buyers that include everything from basic to the most comprehensive coverage. The Supreme for Highline Vehicles vehicle service contract is specifically designed for luxury vehicles and gives you the closest to manufacturer-level coverage a person can get, with parts such as high-tech components, the engine, the transmission, or other serious components all covered.

Every Endurance extended car warranty also comes with a host of standard benefits like 24/7 roadside assistance. Additionally, every new contract comes with Elite Benefits, for a small activation fee, that offers bonus perks such as key fob replacement, reimbursements for up to two tires per year due to road hazards, up to $500 in collision coverage, and more.

To experience the award-winning customer service offered by Endurance, give our dedicated team a call at (800) 253-8203 or request a FREE quote. Alternatively, take the time to explore our online store to get an instant price review so that you can shop with confidence.