Owning a luxury car or SUV is a dream for many people, and fortunately, it is a dream that is within reach for a sizeable portion of those who want it. The cost of owning a luxury car, however, is typically the major factor that can keep someone from achieving this dream. While the upfront costs are of particular importance when considering buying and owning a gorgeous luxury car in the Dallas area, there are also long-term costs that should be kept in mind. While some of these are common for most kinds of cars in general, there are also some factors specific to luxury car ownership that should be considered carefully.
There are many basic costs of owning a luxury car, including financing to buy the vehicle either used
or new. When shopping for a new luxury car, it is important to consider all of your options, particularly whether buying or leasing is right for you. Choosing a used luxury car, especially one that is certified pre-owned, is a great way to get a beautiful and luxurious vehicle while keeping some of the costs down. Maintenance expenses with a luxury car can be a big concern, though some that are well-known for reliability can help keep these costs down.
Finally, there are some costs of owning a luxury car that are a bit more particular to this type of vehicle. Insurance prices can be affected by the type of car you own, and the Dallas area is one of the most expensive cities in the state for car insurance. There is also the risk of theft when you buy a luxury car – after all, there are a lot of people out there that want a luxury vehicle and not all of them are as honest as you. Come visit us at Frank Kent Cadillac in Fort Worth, TX, to discuss these costs and determine if a luxury car is right for you.
Buying a New Luxury Car
When thinking about the costs of owning a luxury car in Dallas or the surrounding area, it’s often easiest to start off with the most obvious, upfront costs. The biggest of which is the actual expense involved in buying a car, so let’s consider buying a new car first. We’ll look at used options in a moment.
Buying a new luxury car is typically going to be your most expensive option, especially if you want a high trim level or additional options. That being said, this also gives you the quintessential luxury car-buying experience since you get to pick your options and features to get exactly what you want. If your budget can handle it, then there is nothing quite like buying a brand new luxury car, and we would strongly recommend it.
Of course, there is also another option when looking into new luxury cars: a lease. Leasing isn’t right for everyone, but if it works for you, then it’s a great option. When you go through a traditional method, you pay for a car (or get a loan to pay for it and pay back that loan over time) and the vehicle is yours.
With a lease, however, you do not actually buy the car; instead, you lease the vehicle for a set period of time, usually between two and three years. During that time, you are basically paying for the depreciation you are causing to the vehicle in exchange for getting to drive it. At the end of the leasing period, you return the vehicle, and you can then lease something new – or you might have the option to buy it if you’ve decided you like it.
A lease is a great way to drive a new luxury car for a few years without committing to owning it, then choose a new one and enjoy it for a few years. Overall, this is less expensive than outright buying the car, but you don’t own anything at the end of the lease.
Buying a Used Luxury Car
If your budget is a bit tighter, but you are still interested in a luxury car, then choosing a used model can be a great way to still experience the sophistication and pleasure of a luxury vehicle while saving some money. A used luxury car is still going to cost more than many other used vehicles, but you get a tremendous amount of value for that purchase. Going with a used option is one of the best ways to cut down on the cost of owning a luxury car in Dallas.
In particular, a Certified Pre-Owned (CPO) vehicle is a very good way to save some money while still getting a luxury car in the best condition possible. Because many people have leased luxury vehicles like a Cadillac Escalade or CTS in Dallas, they only have them for a year or two and return them in excellent condition. Many CPO luxury vehicles were only on a lease for a few years and have not had numerous owners.
By choosing a CPO vehicle, you can cut down on the upfront cost of owning a luxury car by saving some money on your purchase, but you still get warranty protection from the manufacturer. This can help you save even more money in the long-run in case you need maintenance or repairs while it is under this warranty coverage. Of course, choosing a reliable luxury car in the first place is a good idea, but with a CPO model, you know that there is an extra layer of protection and reliability with your choice.
The Most Reliable Luxury Cars
Reliability can be a tricky thing to quantify, but it ultimately has a big impact on the cost of owning a luxury car in the long-run. We’ll take a look at some of the costs associated with maintenance and care for your vehicle later on, but first, let’s look at what that really means. Specifically, let’s consider how the reliability of your vehicle will change what you should expect while owning it in the Dallas area.
No matter how you want to quantify it, a reliable luxury car is one that will keep going and not breakdown or have any major issues within a short period of time from when you buy it. In general, most luxury cars are quite reliable, and that is part of what justifies the expense of buying one. While a luxury vehicle can be a status symbol to some degree, it is also a way of knowing you have a high-quality vehicle that will keep you on the road in great shape.
The Cadillac CTS has been one of the most reliable cars on the road for a long time, and the final model in 2019 has lived up to that reputation beautifully. As such, we expect the CT5 series that will be taking its place from 2020 onward to be just as reliable and offer tremendous value both new and used (once used models become more available). The reliability of the CTS combined with its generous price makes it a great option for anyone interested in a luxury car that won’t let them down – and used CTS models continue to be a fantastic value.
When discussing reliability in luxury vehicles, Lexus is one of the most common brands that many people mention for its durability and low maintenance costs. A used Lexus is a great way to save some money and get a vehicle that will keep you on the road for a long time. Similarly, a used BMW is also a very reliable vehicle and makes a great option for anyone interested in sophistication and style on a more modest budget.
The Costs of Maintenance
Although reliability is important when looking at the cost of owning a luxury car in Dallas or the surrounding area, the importance and expense related to maintenance is just as vital. Reliability usually refers to how well a vehicle will keep running without any major, unforeseen disasters or problems that can cost a lot to repair. No matter how reliable a vehicle might be, however, if not properly maintained, then serious issues are sure to arise and create major unexpected costs while owning a luxury car.
Perhaps the most important thing to remember is that you need to maintain your vehicle properly, and that means routine and scheduled service. The schedule for things like oil changes and new tires depends on a wide range of variables, so do not rely on any simple calendar you find online and assume it will guide you properly. Check the owner’s manual for your vehicle to see how often different types of service and maintenance are recommended and then follow the guidelines in your owner’s manual.
Some types of maintenance also depend on how you drive your vehicle and your particular driving habits. For example, the same vehicle on the same tires can require new tires at very different times depending on the driver. If you do a lot of city driving with a great deal of stop-and-go traffic involved, then you will be much harder on your tires and brakes than someone that drives infrequently. Similarly, if you hit a pothole, go up on a curb, or otherwise drive off the road, you can cause damage to your tires, trash your undercarriage, and throw off your alignment, all of which costs money to fix.
In general, some of the most expensive brands to own in terms of maintenance include BMW, Mercedes-Benz, and Volvo. This is based on 10 years of ownership and includes not only routine maintenance but also unexpected costs. For the most part, foreign vehicles are more expensive to maintain than American ones, due to the cost of importing parts and otherwise taking care of these cars compared to those made here in the US like a Cadillac or Chevrolet.
Perhaps the most important consideration for maintenance and the cost of owning a luxury car is that delaying service is always a bad idea. If you hear a strange sound or your vehicle starts feeling unusual while driving, then take it in for service right away. Issues with a vehicle often start small, and they can be quite inexpensive to repair or replace – if you wait, then the problem can get much bigger and end up costing a lot more to fix.
Insuring a Luxury Car in Dallas
As you are considering the cost of owning a luxury car in Dallas or nearby, the expense of insurance should certainly come to mind. It can be easy to focus only on the upfront costs of owning a luxury car, such as how much the vehicle will cost and interest on a loan, but the long-term expenses are just as important. These can add up significantly over time, and among long-term expenses, few are as mandatory as your insurance rates.
In general, Texas is a great place to live when it comes to car insurance, with rates that are usually lower than the national average. Before you start doing a happy dance, however, note that Dallas is a notable exception to this generalization. Based on rates from 2018, car insurance cost an average of $74 a month in the US; in Texas, the average rate was just $64 a month, but in Dallas, that average was $78 per month.
That’s not a huge difference compared to the national average, but certainly significant when you look at Texas specifically. Only Houston is more expensive in Texas for car insurance, with an average rate of $83 per month. That means, on average, you’re going to spend about $168 more each year on insurance by living in Dallas than anywhere else in Texas (aside from Houston). Where you live in Dallas also matters: if you’re on the north side of Dallas, you might only be looking at about $72 per month, while living in downtown brings that up to $86.
That’s only an average, however, and doesn’t take into account the extra cost of owning a luxury car. There are many factors that go into determining the cost of your insurance rates, and location is only one of them. Your age is one of the biggest factors when determining insurance rates: a teenager will typically pay double or triple the cost someone in their 30s or 40s pays for insurance over the course of a year.
The kind of vehicle you own also impacts your insurance rates, especially with regard to safety. If you choose a large luxury sedan with an excellent safety rating, then your rates will usually be lower than they would be if you own a two-door sports car. Bigger vehicles are considered safer than smaller ones, and luxury cars usually have excellent safety ratings, all of which reduce the cost of a collision, and therefore, reduce insurance rates.
The Risk of Theft in Dallas
One final thing worth considering when looking at the cost of owning a luxury car is the risk of theft associated with such vehicles. This is something that no one wants to think about, of course, but when you’re looking at costs and finances, it always helps to be pragmatic. Car theft is real, it happens and it can potentially happen to you – so keep it in mind when shopping for a vehicle.
In the past, the Cadillac Escalade has topped the list of most stolen vehicles in America, due to its reputation for luxury and its popularity. Because of this, Cadillac has invested a lot of time and money into security features and anti-theft technology on the Escalade. New models include a number of security features that go well beyond what you’ll find on most other vehicles, including glass breakage sensors and motion detectors. Newer Escalades even include inclination sensors that trigger an alarm if someone tries to take the wheels off or lift it onto a truck for towing.
As a result, Escalades have become much more secure and are no longer even in the top 20 for most stolen vehicles in the country. The Dodge Challenger has taken that dubious honor, along with several Infiniti models, the Mercedes-Benz S-Class, and the Audi A7. Having a car that is more likely to be stolen can increase the cost of your insurance rates, plus there are the potential expenses associated with actually having your car stolen. As such, it’s a good idea to consider which luxury cars are most likely to be stolen and weigh that before buying a car.
Finally, it’s also worth noting that Dallas is one of the better cities in the country, and in Texas, for owning a vehicle safely. Dallas is ranked 83rd in the country for rates of car theft, well behind Lubbock and Odessa, which come in at 25th and 31st. Houston is ranked 57th, which might help explain the higher cost of insurance there, and San Antonio comes in at 78th.
Frank Kent Cadillac is Here for You
Once you consider and carefully weigh the various costs of owning a luxury car in Dallas, then it’s time to make your choice. Although a luxury car is not the right option for everyone, if it fits into your budget and lifestyle, then there’s nothing else quite like it. Call or come visit us at Frank Kent Cadillac today to find the luxury car that’s right for you.