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High Average Prices: As of July 2025, the average transaction price for entry-level luxury cars is $56,846, while higher-end models average $120,654, significantly exceeding the industry average of $48,841.
Repair Costs Exceeding Value: Certain luxury cars can incur repair and maintenance costs that surpass their value. For instance, replacing a Tesla battery can cost $15,000 or more, making it more economical to purchase a new vehicle instead.
Tesla: The battery life can range from 10 to 20 years, but factors like climate and charging methods can shorten this lifespan. Tesla's warranty covers only eight years or 100,000 miles for entry-level models, and up to 150,000 miles for premium models.
Land Rover: Known for high maintenance costs, Land Rovers average $19,250 in repair expenses over ten years. Major repairs, such as a new transmission costing around $10,000 and suspension repairs costing about $4,000, make them risky investments post-warranty.
Mercedes-Benz: This brand also faces high repair costs, averaging $12,962 over the first ten years. The likelihood of requiring a major repair is 41.24%. Mercedes vehicles depreciate quickly, making costly repairs, like a $6,000 transmission rebuild, less justifiable compared to purchasing a new vehicle.
