Whether it’s the Porsche 911, Mercedes AMG GT, Bentley Bentayga, Jaguar F-Type, or a Lexus LS, there is something about luxury vehicles that captures attention and demands a market.
The luxury vehicle market is expansive with base vehicle models starting around $40,000, making the opportunity to choose to cruise in a luxury vehicle a viable option for young and seasoned professionals alike. While 40k isn’t a modest sum in the least, the buyer can be confident that they are receiving a first-class machine in exchange for the price tag.
We understand that a vehicle is one of life’s most practical investments, and choosing to purchase a luxury brand is a bold statement of enhanced design, safety, and performance unchallenged by the affordable vehicle segment.
In this series, we will investigate the key differences between a luxury model and their affordable counterpart for our various brands including Volvo, Lexus, Porsche, and Jaguar, addressing the pros, cons, and frequently asked questions when a client is deciding whether or not to dip their toes into the luxury automobile segment. But first, why luxury?
Luxury brands offer enhanced performance within their entire line-up of cars.
Acceleration and fuel economy are continuously improving year over year among the luxury segment. From base models to bespoke, you as a consumer will have increased high performance options at your fingertips when purchasing a luxury vehicle. Looking at the new 2017 Land Rover Discovery, it has four models available ranging from base MSRPs of $49,990 to $73,950. Each ticket price allows the client to benefit from key features
The base SE model offers 340 hp, 19″ 5 split-spoke allow wheels, key less entry, leather seats, 10 speakers, an 8 inch color touchscreen, and rain sensing windshield wipers. The First Edition (base MSRP of $73,950) offers that and then some, including 21″ 10 split spoke alloy wheels, all terrain progress control, Windsor leather seats, a surround camera system, and a Meridian Sound System with 10 speakers, subwoofer, and 10 inch color touchscreen. The quality is consistent throughout, and a luxury vehicle consumer will receive more at the base model than some economy class counterparts.
Consistent quality throughout the entire hardware and software of the vehicle.
State of the Art equipment and safety features are standard among luxury vehicles. For example, the 2017 Lexus GS offers the Lexus Safety System+, fit with a Pre-Collision System, Pedestrian Detection, Lane Departure Alert, Steer Assist, All-Speed Dynamic cruise control. These features are now standard across Lexus, increasing their brand’s value on the second-hand market and further distinguishing it among economy class options.
Certified Pre-Owned programs and manufacturer-backed maintenance are also perks of luxury ownership because you are not just a consumer or customer, you are a client and should be treated as such throughout your luxury new and pre-owned ownership experience.
Crisp design, beautiful contour, and insane comfort cohabitate peacefully in luxury models.
The manufacturer’s designers and engineers pay close attention to not only the overall aesthetic of the vehicle but also the fine print details of each element that makes up a luxury vehicle. The quality of materials used are just as important as the way they look when pieced together- an attention that can only be appreciated at the luxury level of vehicle ownership. For example, Bentley Motors offers a limitless spectrum of color so that Bentley clients have millions of possible color and trim combinations to make their luxury vehicle extraordinary. Mulliner, Bentley’s personal commissioning division, offers the perfect solutions-like state-of-the art color recognition software-to attain the perfect hue for a truly bespoke creation.
Luxury vehicles can have a high resale value.
According to Forbes, new cars lose immediately about 20% of their value as soon as the new owner drives it off the lot. Fast forward five years later, and certain models will depreciate faster than others (some up to 80%). Since depreciation is the single largest cost to vehicle ownership, it’s important to choose a brand and model that’s been engineered to retain its value for years after it leaves the lot.
Say you decided to purchase a brand new 2017 Lexus GS at an MSRP of $52,590. Five years from date of purchase, you decide to sell. Odds are that the Lexus GS will depreciate less over 5 years than your budget friendly models and thus will result in a higher resale value. According to Kelly Blue Book’s 2017 Best Resale Value Awards, the 2017 Lexus GS will retain 42% of its value 36 months post purchase, and then 31% at 60 months- making it the winner of “Best Resale Value” in the luxury segment.
The available technology and safety features, fuel economy, and exceptional design of a model are also key to choosing what vehicle cost will give you the most cost benefit to fit your unique lifestyle.
This is not to say that there are no economy class vehicles that are fantastic on the road or provide their passengers with peace of mind in terms of safety, but there is an authenticity attached to luxury ownership that simply cannot be replicated. Exceptional engineering, precise attention to detail, and an authentic portrayal of a high performance lifestyle will not disappoint for any new or pre-owned client.
Amongst all the pros and cons that will be discussed in this series answering the question of “Why Luxury”, one thing is for certain, – “you get what you pay for.” Stay tuned as we continue this series with model to model comparisons in upcoming posts.