Why Are German Cars So Expensive?

When it comes to expensive cars, undoubtedly, you will think about BMW, Mercedes-Benz, Porsche, Audi, and Volkswagen, to name a few. Ever wondered why German cars so expensive?

German car manufacturers bring revolutionary changes by using innovative technologies in the automotive industry. The efficiency and performance of German cars are incredible. Also, these cars’ build quality, design innovation, and demographic are better than other cars. That is why they are so expensive.

I will discuss the reasons comprehensively in this guide. Keep on reading intently.

German vehicle makers outspend their competitors regarding R&D. They use the most innovative components in the car, which makes them set apart compared to their rivals.

Here are the top reasons for the expensiveness of German cars.

1. Top-Notch Technology

Mercedes-Benz has always been the inventor of the latest technologies. They always use a basic level of invention in their cars. You will find a set of functionalities to make your day-to-day driving smooth. More importantly, these functionalities are unavailable in their rival cars.

The active-start mechanism senses the distance regardless of the gap. This system activates the brake depending on your car’s speed and distance. This way, you can effortlessly avoid collisions with other cars in front of you.
An exit warning system is another remarkable feature. Opening the door to get off the car gives you a signal about incoming vehicles. Thus, avoiding accidents between the opening door and upcoming vehicles becomes easy.

The above 2 features make Mercedes-Benz an exceptional car brand in the automobile industry. Besides, all-wheel drive opportunities are new features available in almost all German cars. Happily, other brands also have similar features.

2. Premium-quality Interiors

The interior quality of German cars is unbeatable. For example, Mercedes-Benz comes with the below interior features,

Large dashboard
Fully digital display
Thick-rimmed steering wheel
Leather appointments throat
Well-appointed vents
Sharp seating controls
Unique trim level

Mercedes-Benz used brushed aluminum in the controls. Also, the door panel has power seat controls for your convenience. Simultaneously, brushed aluminum is used in the console control, which is pretty amazing.

German car seats are fully leather-covered and have contrast stitching, leaving a beautiful look. Moreover, they have a high-quality general design. The overall design of the interiors gives an eye-catchy and pleasing look. You will also find electronic displays in most German cars, which are the nicest in the business.

Some latest models of German cars from Audi, BMW, and Volkswagen come with several electronic controls to make your riding experience enjoyable and safe.

3. Efficiency and Performance

German cars have undergone a lot of improvements.

For instance, you will find several versions of Mercedes GLA. In each version, they offer new technologies and upgrade the earlier versions. More importantly, Mercedes-Benz doesn’t rest on its laurels. They introduced a 20 liter turbo, the 4-cylinder engine used in different versions, making them a reliable car brand in the world. A lot of different models consist of V8 engines and 4-liter twin-turbo V8. In addition, German car brands are stepping into 6-cylinder engines.

It proves that German cars are not only versatile. They are efficient and high-performing. They are proven to be more powerful than other cars.

4. Innovative Design

Innovative style and design are another reason for the expensiveness of German cars. Many models use high-quality parts in every section. Exterior LED headlights, fully automated convertible systems, etc., are a few features that are hardly available in European cars.

Grille designs are different and unique in German cars. More importantly, they have incorporated several grilles. For this reason, they look pop and sharp at night. Shining and reflected lights seem great.

5. Build Quality

Steel and aluminum are the prime materials of German cars body. A combo of these materials will save you from severe collisions. Leather, paint quality, powertrain, materials and all other things are high-grade in German vehicles.

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Most expensive German Car brands

While buying new cars, you might have experienced that German cars are the most expensive. Read below to learn about the most expensive German car brands available in the market.

1. Mercedes-Benz

Mercedes-Benz started its journey in 1926 and established itself as one of the world’s most reliable and well-known brands. Although they have an inexpensive model as well, limited editions are also there, which are the most expensive.

Such a model is the Mercedes-Benz Maybach Exelero which will cost you roughly $8 million. This car is powered by a V12 engine. To date, only 12 or fewer Maybach Exelero is found in the world.

Another expensive model is the Mercedes-AMG Project One. It is a hybrid-performance vehicle with the technologies of Formula One cars. If you are seeking a truly expensive and worth the price car, Mercedes will surely be a deal-breaker.

2. Audi

The most impressive thing about Audi is that they make the most expensive cars in the world while they have budget-friendly models too. This ensures that everyone can afford an Audi car and be satisfied.

Their Newest Q9 Series is the flagship car and could be one of the best cars you have ever seen. This model comes with many advanced technologies to blow your mind.

Additionally, Audi is now focusing on manufacturing Sportback and SUV segments, indicating that they want to take their car models to the next level.

3. BMW

Are you looking for famous luxury cars? Buy BMW cars without hesitation. BMW vehicles come with luxurious designs and high prices.

In 2021, their sales rate increased to 22.8% despite having an expensive tag. The reason is that BMW cars are one of the reliable ones providing the best protection on the road from severe collisions. Moreover, their cars are designed with the latest technologies to give the driver and passenger a memorable driving experience.

4. Porsche 911

Wealth and Quality – these words perfectly match Porsche cars. One of the most highly-priced car lines globally is the Porsche Cayenne. Most of their cars are built with a strong engine, giving raw power to dive safely on the road.

Porsche has focused on building high-performance models since its inception in the automobile industry. Their cars remain up-to-date and modern in every version.

5. Volkswagen

Volkswagen doesn’t only make expensive cars, but they are also well-known for reliable manufacturing vehicles.

Some of the best-selling Volkswagen models are the Golf and Polo. Reliable engineering, spacious interior, and advanced modern equipment are the prime features of Volkswagen cars.

How much does it cost to own a German Car?

The average price of a new German car is roughly $36,300. In comparison, a used German car will cost you approximately $18,750. One thing to keep in mind, the price depends on the car model, making years and configurations. The more configuration and feature your selected car have, the costlier it will be.

What are cheaper alternatives for German Cars?

German automakers have a reputation for making luxurious, sporty cars. These cars are also pretty expensive. Find the cheaper alternatives for German cars below.

1. Genesis GV80

This is the latest model from car maker Genesis, and it impresses the whole world with eye-catching looks and premium features. It is the first-ever SUV from Genesis, receiving 10,000+ pre-orders after getting announced.

Its high-tech features and luxurious interior makes it worth the price. Moreover, it has a unique and interesting design that most Europeans love.

2. KIA K900

It is a full-size luxury sedan, offering insane value for money.

The most important thing is that this car has a Mercedes-Benz interior while its price is less than $60,000. The sedan has an intriguing look that you will say “never seen like it before.” More interestingly, it is equipped with a V8 engine.

3. Volvo XC90

If you are looking for an excellent alternative to BMW or Land Rover, buy Volvo XC90 without thinking twice. Although this car model has several generations, happily, all generations feature premium parts, spacious interior and great outlook. Build quality, design and technology are pretty similar to the BMW.

4. Genesis G80

Another car from Genesis, the G80 model, turns the head of many customers due to its latest tech and new design language.

Considering its price, you will find it a great-looking sedan. The interior is extremely comfortable and the best in its class. It received several positive early reviews from consumers.

5. Cadillac Escalade (New)

The Cadillac Escalade (New) is one of the best SUVs in its price range. You will hardly find an affordably-priced vehicle equipped with a V8 engine. Happily, it contains a V8 engine, giving you a smooth riding experience all the time. Also, it delivers reliable performance from the first day.

It features incredibly self-driving technology, several luxurious features, and tons of interior space to satisfy potential customers. In addition, its reliability rating is also legendary. Overall, the automotive market has seen fewer models like this SUV at a budget-friendly price.

Frequently Asked Questions

Are German cars expensive to maintain?

According to Consumer Reports, German cars are more expensive than American or Japanese ones. The range of maintenance costs is $700 – $1,500/ year, depending on your car model.

Consumer Reports conducted a study where they found that maintenance costs of common car problems such as alternator replacement, starter replacement, AC compressor replacement, fuel pump replacement, and, to name a few, are high in the case of German cars.

Are German cars more expensive to repair?

German cars are categorized as “expensive repair” list as per Consumer Reports. For example, in order to repair the serpentine belt of a BMW X1, the cost will be around $900. On the other hand, for other cars like Japanese or American vehicles, you may need to pay $140.

You can now reduce the repair cost by making a few tricky decisions, like looking for a good warranty or doing a pre-purchase inspection.

Generally, German cars use high-tech parts and cutting-edge technology, which differs from others. That is why, if something goes wrong, it becomes more expensive to repair.

Are German car parts expensive?

Yes, German car parts are pricier than Honda, Ford, Chevrolet and other car manufacturers. But the car parts cost relies on the car model. Let’s say the 2010 Audi A3 has cheaper car parts than the 2010 Audi R8.

The prime reason is; that these parts are sourced from premium companies. For instance, BMW depends on high-quality part manufacturers named Bilstein or Bosch. These companies have a reputation for manufacturing quality parts for expensive cars.

Is German car insurance expensive?

Car insurance for luxurious cars like Porsche, Audit or BMW is a little more expensive than Nissan or Toyota. BMW car insurance costs $1,788/year. Meanwhile, for an Audi car, the cost is $1,606/year. It is 36% more than average.

However, the insurance cost differs from brand to brand. You may need to pay $2,442 in insurance costs per year for a Porsche car.

On the other hand, Volkswagen cars are not extremely luxurious and sporty. In this case, the insurance cost is $1,468/year. It means you can’t determine the exact insurance cost since it varies from model to model.

Conclusion – Is buying a German Car worth it?

As stated earlier, German automakers are well-known for making luxurious, high-tech cars. German cars offer the below benefits,

High Performance: German manufacturers named Audi, BMW, Mercedes-Benz, Porsche, etc. compete with each other to determine who is the best. They use a powerful engine to make your every ride smooth.
Comfortable Riding Experience: The luxury riding experience is one of the best features of German cars. Hand-crafted leather interior, classy color scheme and all other details perform together to make your life comfortable on the road.
High-quality: Germans employed advanced techniques in their cars from World War II. Also, they maintain strict quality control to ensure that no substandard product is released in the market.
Fuel-Efficient: Generally, expensive and luxurious cars are known as less fuel-efficient. But German cars help you save fuel. Some highly fuel-efficient German cars are BMW 335D and Audi A3 since these cars can go 13 km/ liter.

Why Are German Cars So Expensive? – 5 Things You Should Know