The sticker prices of cars to own do not tell the full story of how much they cost. If you are going shopping for a car, do not just consider its sticker price or monthly lease rate. Measure ownership costs over time.
If you have set your heart on buying a car, especially a luxury model, do not think of making it a good deal by looking at the handful of dollars you can save on the spot. Cars you choose reflect your personality. Of course everybody would like to get a good deal. To get a good deal out of a purchase, it is important to weigh the total cost of ownership over a period. A vehicle with a low sticker price may be very tempting but would prove to be more expensive than most of the expensive cars in the long run.
Compare the total cost of ownership for various cars by including the costs for 15,000 miles per year for:
- Fuel
- Insurance
- Maintenance and repair bills: Maintenance and repairs can start to add up, especially in the fourth or fifth year, after a warranty expires
- Depreciation: Depreciation is the biggest single item affecting cost of ownership
- Interest, taxes and fees
Lets us consider the case of
- The Mercedes GLK
- The Lexus RX 350
The Mercedes GLK is the lowest-priced midsize luxury crossover. The Mercedes has an average market price of $33,709. The Lexus RX 350 sells for an average $35,542. Factor in the five-year cost of ownership for both vehicles and you will be surprised to know that the Lexus is a better bargain. The Lexus RX 350 will cost $52,381 to own it over five years and the Mercedes GLK, $53,361. You may consider buying the Infiniti EX 35. Infiniti EX 35 sells for an average of $33,854. This price is just a bit more than the Mercedes. The good news is the Infiniti EX 35 has the lowest cost of ownership in the segment at $50,704.
The Sticker Price – Less is Expensive
The sticker price of the Land Rover LR4 is the lowest-priced midsize luxury SUV. It cost $51,008. Its cost of ownership is around $73,472 which is higher than that of Toyota Land Cruiser. The Toyota Land Cruiser has a sticker price that is almost $10,500 more than that of the Land Rover LR4. After five years of ownership the Land Cruiser would cost you $71,507 which is apparently much less than owning a Land Rover LR4.
Let us now look at Audi A6. The Audi A6 would cost you as much as the Mercedes E-class with $49,577 for the Audi and $50,019 for the Mercedes. The A6 ownership over five years will cost you $3,779 less to operate over time. The A6 will cost $70,808 while the E-class, $74,587 over the same period.
The Sticker Price – The best luxury car value
So far, the best five-year cost of ownership to the average transaction price, is exhibited by the BMW X6 as the best luxury car value. The X6 crossover sells for $84,867 and will cost $91,396 over time. The hybrid version of the X6 sells for about $4,500 more, and has the same cost of ownership ratio.
The Sticker Price – Not always the best luxury car value
The costliest luxury car is the Lincoln MKZ, which offers a sticker price of 31,322 but would cost an ownership of $52,811 over five years.
The above instructions are not meant as legal advice. You may persist your lemon law claim or any other issue with your automobiles by contacting Illinois lemon law attorneys of Krohn & Moss Ltd., or Call 1-800 US LEMON® (800-875-3666) toll free, to reach Krohn & Moss for your FREE initial consultation.
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