Why do maintaining a luxury car costs more? Shouldn’t they be more reliable than the cheaper ones?

Question

Why do maintaining a luxury car costs more? Shouldn’t they be more reliable than the cheaper ones?

In: 60

Answer 1

Aside from what’s already been mentioned, there’s the psychological side of “willingness to pay” as well. Consumers who buy less expensive cars are generally also less likely to be willing to pay higher amounts for repairs. Consumers who are willing to spend more on a car initially tend to also be more willing to pay higher prices to maintain it. Car manufacturers know this and take it into account when pricing as well.