What makes the luxury cars so expensive? The one-word answer can be luxury cars are expensive as they have limited production volumes but the other broad answer is the luxury cars are more pricey because of the parts and that are used in the car are of superior quality. An excellent seat cover, a very expensive engine, superb quality glasses, good mileage, etc. all makes a car expensive. But, expensive cars are just affordable to the people who earn at least a million dollar a year as a single part of the car is can cost you more than a thousand dollars. For this reason, the auto manufacturing companies have come ahead to make cars affordable to the general people.
The additional cost of the luxury features assists to explain why the car manufacturers will offer them on the economy cars. For example, Honda offers a leather interior and high-tech navigation because that is very cost effective. This increases Honda’s total profits on that model. The fundamental reason why an SL500 or Range Rover costs a lot is the volume of the production. These cars are very costly to develop and design. The automakers often expend hundreds of millions of dollars or sometimes it is billions in the developing and designing of these cars from the ground up.
On the top of these high end developing and designing costs, there are costs for the configuring and tooling of manufacturing plant, expert and trained workers, updated technology and robotics. The car manufacturers who make affordable cars tend to use low-end products to lower the cost of the production and make it accessible to everyone. For example, the Tata Car Company of India made a car lower than the expense of a good bike which uses products and items which are easily affordable and replaceable. The car manufacturers produce cars in high volume as the designing and development cost is less due to the use of affordable products in the car.
In reasonably priced cars the engine will not be as same that of the expensive one. Again, cheap priced cars will use standard seat covers whereas it is must to have natural leather seat covers with the expensive cars. Again, the auto glass utilized in the low-end cars are not that costly and almost of the average price said the expert – visit the Burlington shop The cost of the auto glass provided in these cars can be little, but they also provide the same benefits like that of the high-end products if they are installed correctly. We are not saying both are equal but installation matters because it ensures the better holding of the auto glasses to the car. There are quite a good number of reasons for which the car companies use mediocre products for the manufacturing of these cars.
A cheaper vehicle can be stable, durable and reliable if the designer invested money and most importantly time with these affordable products so that it might not be luxurious. But if someone wants luxury they have to pay for it. To sell more, to get more profit and to earn fame among the general people, it is required to produce cheaper and affordable cars to be competitive in the market.