Why Do Luxury Vehicles Have Higher Fees Than Domestics?

Luxury vehicles generally come with a higher price tag than their domestic counterparts.

But that’s to be expected, especially when you consider the high overhead cost that goes into manufacturing foreign parts and accessories for luxury brands.

And, while most in-market shoppers are comfortable dishing out more dough for a fancier vehicle, what they’re not always prepared for is the difference in ownership fees. Price tag aside, luxury and exotic models are known to have higher sales tax, more expensive monthly fees, and even more expensive gas. But why are only luxury models being targeted?

More Features, More Fees

Anybody who drives a luxury model knows that you simply can’t compare it to a domestic. It would be like comparing an apple to an orange. Luxury models are packed with more features and the overall quality of their craftsmanship goes above and beyond your average family sedan. In essence, you get what you pay for, and you should be prepared for that!

Technology and entertainment features aside, exotic models are often renowned for their aerodynamic capabilities, and engine power. Those big, roaring engines take a whole lot of power to accelerate the way you want them to, so there’s no doubt they’ll cost a bit more. Most luxury shoppers prioritize performance over fuel economy. After all, if mileage was a major concern, you wouldn’t be getting behind the wheel of an exotic in the first place. However, thanks to technological advancements, many of today’s luxury brands like Audi and BMW are improving the fuel economy on their car and SUV models.

Understand Your Purchase

If you shop for a vehicle that costs more, your fees will increase--not because of brand, or industry image, but because you are buying into a product that costs more money to produce. Domestic vehicles are able to maintain a low overhead because their mass production uses cheaper parts. When a cheap part breaks, it’s easy to fix or replace. When an expensive part does, it can be challenging, especially if production is done in-house, overseas. Insurance prices, for example, will always be slightly more costly on a luxury vehicle because they’re protecting a more expensive asset. These details are not secrets, and you will always be notified of your costs up front when buying.

Luxury cars are easy to fall in love with, and even more fun to drive. At Somerville Auto, our dealership i home to some of the finest luxury cars and exotic SUVs in the GTA. Plus, our affordable finance and leasing plans make them easily obtainable--without breaking the bank. Call us today at 1-(877) 503-5102 or contact us online for more information.