How to reduce the cost of buying and own a luxury car

How to reduce the cost of buying and own a luxury car

Friday, 30 November 2012 5:56 PM

Owning a luxury car needn't be too expensive

Owning a luxury car needn't be too expensive

Owning a luxury car – whether it's a Bugatti Veyron, a Porsche 911 or something else – is something virtually every motorist dreams of. If you're looking to turn these dreams into reality, however, it's important that you pay a fair price for a high-end vehicle.

While you shouldn't expect to shell out a similar amount of cash for a Ferrari as you would for a Ford that isn't to say that a high-performance car always has an extortionate price tag attached to it. Even if you have the financial resources to get a brand new top-of-the range vehicle, you always ought to try and get the most for your money.

Of course, once you have bought a luxury motor you should look to keep the cost of running it as low as possible. Here's a rundown of some of the things you can do to ensure that the process of purchasing and owning such cars do not become needlessly prohibitive.

Consider buying at auction

First of all, let's look at how the cost of buying a car can be lowered. As you're probably already aware, a new vehicle's value will drop dramatically the minute it is driven off the showroom forecourt. Instead, it's often much more cost-effective to get a second-hand car as they will maintain their value for longer.

If you are planning on getting a car from a dealership it's worth doing so in December. It is at this time of year that dealers will be keen to clear out stock to ensure they hit their annual sales targets and to make way for new models that will be coming in at the start of the new year, so there will be more scope to negotiate a competitive price.

Alternatively, you might want to think about purchasing a luxury car at an auction. With hundreds of vehicles often going under the hammer at such sales, you should find there is plenty of opportunity to get a vehicle that's right for you.

Rather than haggling with a salesperson, the amount you pay for a vehicle will be determined by the level of interest shown by you and other bidders. Provided the reserve price has been met, you could drive away in a vehicle for significantly less than what you would have to pay for a similar model at a traditional dealership.

Compare fuel prices

No matter what vehicle you get, fuel is always likely to be one of the largest costs attached to owning a car. As such, you should regularly compare prices offered by retailers in your area to make sure you're always going to the place that enables you to get the most for your money when filling up at the pumps. On the other hand, always buying your fuel from one retailer, regardless of the price they charge, is likely to be to your financial detriment, especially when cheaper outlets are located nearby.

It's also worth bearing in mind major supermarkets often run special deals offering a discount on fuel to motorists. However, a certain amount of money will usually have to be spent in-store to obtain such a voucher.

Obtain comprehensive insurance

Another major expense attached to luxury car ownership is insurance. While all motorists should look to get a good standard of cover, it is perhaps even more important for owners of prestige vehicles to do this.

Not only do such cars have a higher financial value than mainstream counterparts, but they tend to be more common targets for vandals and are more expensive to fix. As such, it's worth taking the time to obtain luxury vehicle insurance to ensure that the cost of repairing your car does not have to come out of your own pocket.

Generally speaking, mainstream insurance companies are unwilling to insure high-end vehicles – largely due to the perception that drivers of these are more likely to make claims on them – so you're best off using the services of a specialist broker. That way, you can be confident of taking out comprehensive insurance and tailor your policy to meet any specific requirements you have.