The Gift That Keeps on Taking: 8 Hidden Expenses of Luxury Vehicle Ownership You Should Know

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Driving a luxury vehicle may feel like a dream, but it can come with nightmarish hidden expenses.

Don’t be haunted by the surprise costs of luxury vehicle ownership. Driving the luxury car of your dreams might be worth the price, but it’s essential to be aware of those hidden expenses so you can figure them into the overall cost of the car.

What are the hidden expenses of luxury vehicle ownership?

The cost of any car isn’t just on the sticker. Car owners encounter a variety of expenses other than the vehicle price. These eight hidden costs of luxury vehicle ownership are crucial for car buyers to consider before signing on the dotted line.

1. Car shipping cost

Shipping expenses often come as a surprise to car buyers. Whether your luxury vehicle comes from another location in your country or ships from another continent by freighter, you should figure the car shipping cost into the car’s total price.

Some luxury car buyers will buy a one-way ticket to the city where their vehicle is and drive it home, reducing the shipping costs.

2. Insurance

Auto insurance is a must for any vehicle. In most places, it is required by law. Insurance companies calculate your premiums by considering the cost of replacing your car should it be damaged or destroyed. Luxury vehicles cost more to insure because they are more expensive.

The risks of luxury cars are also figured in since they may be more likely to attract the attention of car thieves.

3. Taxes, title, and registration

Car costs also include the annual price of your car’s license tag. The car tag cost is a property tax based on the vehicle’s value, which usually reduces each year as the car ages, but the price of a license tag renewal for a luxury car will be more.

Car buyers will also have to pay for title and registration, which is required when a car changes hands.

4. Fuel expenses

Not every luxury car gulps fuel, but some do. Usually, the larger luxury vehicles, or ones known for speed, will be the most fuel-inefficient. Also, some luxury cars run best on higher octane gas, which is more expensive. Gas prices around the world are rising, with no end in sight.

This point may be less of a problem for electric luxury cars, but you should always figure fuel expenses into the costs of car ownership.

5. Tires

Replacing tires is a fact of car ownership, but those replacement tires tend to be more expensive for larger luxury vehicles and performance sports cars. Some luxury cars also have tires filled with nitrogen for a smoother driving experience.

Car buyers often don’t consider the cost of replacement tires when calculating luxury car expenses, but acquiring new tires is part of car maintenance.

6. Repairs

You’d think a luxury car wouldn’t break down often, but that can happen to all vehicles from time to time. Repairs on luxury cars cost more because of parts and labor prices. Luxury cars may need specialized mechanics with training on those particular vehicles, driving up repair and maintenance costs.

7. Depreciation

All cars depreciate, starting when a new owner drives them off the lot. Don’t think that it won’t go down in value just because a car is a luxury vehicle.

Because the price of a luxury car is so high, new luxury vehicle owners can find that their vehicle is worth less than they still owe on the car loan they used to buy it. Unless a car is a rare collector’s item, it will likely drop in value.

8. Traffic violations

Some luxury vehicles look like they’re going ninety miles per hour while standing still. As a result, performance vehicles and sports cars are more likely to be pulled over, while vehicles designed for families such as SUVs are less likely.

The best way to lessen this risk is by obeying traffic laws and sticking to the speed limit, even if you’re behind the wheel of a Ferrari.

Final thoughts

The hidden costs of luxury vehicles don’t mean you shouldn’t own one. On the contrary, many luxury car owners say their dream vehicles are well worth the price because they love driving them.

Cross-country road trips can be a great way to enjoy a luxury car, but just driving your luxury vehicle to work or on errands will give you a thrill.

Whether it’s routine maintenance, repairs, tag costs, insurance, or even a speeding ticket, owning a luxury car can include expenses that aren’t listed on the sticker price.

Knowing about these hidden costs before buying a luxury car will allow fewer surprises in budgeting later. In addition, planning for these costs will make maintaining your luxury vehicle a smoother ride.