Whether or not it’s worth buying that luxury car you’ve been eyeing is a deeply personal choice. To help you make a well-informed decision, we’ve rounded up some of the major advantages and disadvantages of buying a luxury car (and types of car insurance are just one factor). 

It’s worth mentioning here that the line between luxury cars and mainstream ones is, arguably, fuzzier than ever. A full-size American pickup truck stuffed with optional extras like stitched-leather trim and massaging seats can easily cost $80,000 or even $100,000. Meanwhile, some of the big German luxury brands have come downmarket into the sub-compact vehicle arena, with little hatchbacks and SUVs starting around $40,000. For this guide, let’s assume luxury cars are cars from luxury brands.

What is a luxury car vs a regular car?

A luxury car offers more than just basic transportation; it elevates the driving experience. Compared to a regular car, a luxury vehicle prioritizes comfort, performance, and advanced technology. Think plush leather seats, powerful engines, and smooth, quiet rides.

Regular cars focus on getting you from point A to point B efficiently. They're practical and affordable, but often lack the finer details. Luxury cars, on the other hand, add those extra little details. They might include heated and cooled seats, premium sound systems, and sophisticated navigation. Safety features are also often more advanced, with things like lane-keeping assist and adaptive cruise control.

The price difference reflects these additions. Luxury cars cost significantly more, partly due to higher-quality materials and cutting-edge engineering. They also come with a certain prestige, representing a higher status symbol for some drivers. 

What should you consider before buying a luxury car?

Before you start shopping for the car of your dreams, consider a few things. Luxury cars come with a hefty price tag, and that's just the beginning. Car insurance will be significantly higher than for a standard car. Think about fuel costs too; luxury cars often guzzle premium gas.

Driving performance

Luxury car driving isn't just about a smooth ride. Think about how the car feels on the road. Do you want a powerful engine for quick acceleration? Or is a quiet, comfortable cruise more your style? Also, consider the handling. Does the car feel nimble and responsive when turning? Some luxury cars offer sporty handling, while others prioritize a more relaxed feel. Think about the brakes too. You want strong, reliable stopping power.

It’s always a good idea to test drive different models to see what suits you best. Pay attention to the steering. Is it light and easy, or does it give you a good sense of the road? Finally, don't forget about visibility. A good view of your surroundings is key for safe and confident driving, no matter how fancy the car. 

Safety

Luxury cars often boast advanced safety features, but it's crucial to understand what they offer and how they work. Don't just be impressed by the long list; consider your driving habits and needs. Do you frequently drive on highways? Adaptive cruise control and lane keeping assist can reduce fatigue and enhance safety. City driving? Blind spot monitoring and automatic emergency braking are vital for navigating traffic.

Look beyond the basics like airbags and anti-lock brakes. Consider advanced features like pedestrian detection, rear cross-traffic alerts, and driver drowsiness monitoring. A high-end car's price tag doesn't guarantee superior safety. Informed choices ensure you're investing in features that truly protect you and your passengers – especially in the event of a car insurance claim.

Cost

Luxury cars offer a premium experience, but that comes at a price. The upfront cost is significantly higher than a standard vehicle. Expect to pay more for insurance, maintenance, and repairs. Premium fuel adds to the running costs, and depreciation can be steep, especially in the first few years.

However, luxury often translates to advanced safety features, cutting-edge technology, and a more comfortable ride. Higher quality materials and construction can lead to greater longevity. The prestige and status associated with a luxury brand can be appealing to some. Resale values, while lower than the initial price, are generally better than non-luxury counterparts. Ultimately, the decision boils down to your priorities and budget. Is the enhanced experience worth the higher cost?

Advantages of buying a luxury car

Plush ride: Most drivers would certainly welcome not getting jostled around so much over bad roads. Some luxury cars have air suspension or adaptive dampers that let the driver select a softer, or firmer, ride as needed. Other high-end vehicles have active suspension systems linked to road-scanning cameras, radar and/or GPS navigation. That way, when the car senses a sharp turn or a speed bump coming up, the suspension automatically primes itself to keep the car level or absorb the impact.

Calm cabins: The most luxurious cars money can buy have cabins so silent it feels like somebody put the world on mute. It can make for an extremely calm, relaxing ride, even at the peak of rush-hour chaos. 

First class details: Who wouldn’t like to be surrounded by natural open-pore wood, carbon-fibre, buttery-soft fabric, or real metal trim? We can all probably agree it’s nicer than the sea of black plastic you’ll often find inside economy cars.

Cool gadgets: As with smartphones and TVs, high-tech features in cars usually trickle down from expensive models to cheaper ones. In the newest luxury cars you’ll find heated armrests, or widescreen theatre displays that drop from the roof to entertain rear-seat passengers, or doors that open and close at the merest wave of your hand. (Yes, really.)

Driver assists: Hands-free driving assistants are a high-end feature more commonly found in luxury vehicles. While this technology doesn’t replace a driver – far from it – they can, in theory, make the physical job of driving easier by allowing you to take your hands off the steering wheel and your feet off the pedals under certain circumstances.

Disadvantages of buying a luxury car

Buying the badge: Nice as they are, luxury cars still just get you from A to B. To some extent, buyers are paying for the prestige (real or perceived) of having a particular shiny badge on the hood of their car. So, it should come as no surprise luxury car makers often post the highest profit margins in the automotive industry.

Filling up: Under the fuel-filler cap on luxury cars you’ll commonly find a sticker recommending 91 octane premium gasoline. (Note, some luxury cars merely “recommend” premium while others “require” it.) The costs of this type of fuel can really add up.

Repairs and maintenance: There’s a direct link between the cost of a car and its maintenance costs, a Consumer Reports survey found. The cars and SUVs with the highest repair costs for common fixes were, unsurprisingly, high-performance luxury machines, mainly from German brands, according to the survey. No luxury brand made Consumer Reports’ list of the least-expensive 10-year old cars to maintain, either. That said, non-luxury cars can leave you with shocking repair bills too, so be sure to do your homework.

Insurance: Be ready to pay more for car insurance if you buy a luxury car. When determining your premium, insurers consider how much a claim would cost if something happens to a vehicle, among other things. High-tech features, fancy paintwork and advanced technologies often (but not exclusively) found on luxury vehicles can make any repairs more costly, potentially driving up premiums. Just saying, you won’t find any luxury brands on our list of the top 5 vehicles for cheap insurance in Toronto.

Depreciation: With very few exceptions, all vehicles lose value as they get older. (We’ll ignore the fact some used cars actually appreciated during the pandemic, due to supply shortages, because that seems to be an anomaly.) On average, new cars lose 49.6 per cent of their value over the first five years, according to a massive study of 7.7 million vehicles by car search engine iSeeCars. Since luxury cars are usually much more expensive to begin with, losing half their value can easily amount to a loss of $20,000 or much, much more. Is it worth it? That’s up to you.

How can I save money on my car insurance?

There’s a lot to consider when you’re trying to decide if luxury cars are worth it – but one thing you’ll definitely want to keep in mind is types of car insurance and which is the right one for your vehicle of choice. No matter what car you end up buying, you can trust that Sonnet has you covered. Get your car insurance quote today and find out how much you could be saving!