Here’s What That Luxury SUV Really Costs Retirees Over 10 Years of Ownership
Written by
J. Arky
Edited by
Jenna Klaverweiden
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Retirees live on fixed incomes and usually cannot afford to stretch their budgets much. However, being retired means treating yourself, and if you are someone who likes a luxury SUV, you might want to know exactly how much it’s going to cost you over a decade during your post-working years.
GOBankingRates added up the cost retirees might encounter owning a luxury SUV.
Depreciation
Alan Gelfand, owner of German Car Depot, shared that the biggest long-term cost of owning a luxury SUV is quite likely to be the cost of depreciation. As an example, Gelfand used the Infiniti QX50. Even used, the Infiniti QX50 “will still have plenty of life left in it and offer a sound base for further investment, but the initial list price of a vehicle that starts at $35,345 for the base model and rises to $69,950 for the top of the range Luxe will inevitably translate into a significant loss of value.”
“Luxury cars depreciate more quickly than non-luxury vehicles,” said Melanie Musson, an auto industry expert with AutoInsurance.org. “They also have a higher starting price, so that depreciation has a bigger impact.” Musson noted that if an SUV that costs $30,000 depreciates by 50%, you’ll lose $15,000 in value. But if an $80,000 luxury SUV depreciates by 50%, you’ll lose $40,000 in value.
Maintenance and Repair
In addition to the initial purchase price, Gelfand highlighted that there are maintenance and repair costs over a 10-year period that vary by model.
“Individual costs have ranged from $1,000 to $2,500 per year for brake replacements and similar wear parts for most luxury SUVs, which translates to $10,000 to $25,000 in 10 years,” Gelfand said. “For some of the more complex European models, these costs can be even higher and occur well after the warranty has expired.”
Vehicle Insurance
Because luxury SUVs are much more expensive than other cars, insurance premiums are higher than usual, according to Musson.
“Depending on your driving record, where you live and how much your vehicle is worth, you can expect to pay in the $3,000 range annually for full coverage,” Musson explained. “You might pay less, but if you have a record with violations or claims, you’ll probably pay more.”
Onboard Upgrades
In Gelfand’s professional opinion, there is also considerable risk and cost related to the technology, drivetrain and increased complexity of newer models, which might add to retirees’ bills for luxury SUV ownership.
“Air ride systems, computerized components, turbo powered engines and all-wheel-drive vehicles can cause unforeseen repair bills,” Gelfand explained. “Repair costs for even the finest luxury SUVs can average $2,000 to $6,000 per incident with at least one to two repairs per model over a 10-year period equaling the original purchase price of a new vehicle.”
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