Many people are satisfied with driving or renting a standard car from a top-rated automaker, but others crave the experience and image only an exotic car or luxury car rental can provide. Before making the big decision, it is important to consider the hidden costs of owning a luxury car, as you may prefer to rent one!
Among the top 5 hidden costs of owning a luxury car are:
1. Higher taxes
2. Increased insurance needs and rates
3. Maintenance costs, cost of ownership
4. Fuel expenses
5. Proper storage costs
Higher taxes. When you own a luxury car, you will incur not only the steep initial cost of purchase, but get slapped with a large sales tax. This is because the sales tax is the same for any vehicle purchase, and measured by a percentage of the vehicle’s price tag, which will be astronomically higher for a luxury car. Before investing, you may want to consider how much cheaper it will be to simply indulge in a luxury rental car on special occasions.
Insurance costs and risks. While sales tax is the same percentage for standard and luxury cars, insurance rates differ. Exotic and luxury cars come with a higher insurable risk, and insurance companies bill accordingly. Before you buy that Lamborghini, Ferrari or Aston Martin, check with your insurance agent to find out how much your monthly insurance bill will jump, you may be astounded. A properly insured Ferrari F430 rental is less of a headache should you have a fender-bender...or end up in a situation like the photo to the right! One accident to your luxury car decreases the resale value grately.