Revealing the Hidden Costs of Owning an Exotic Car - Las Vegas Edition

Insurance

Insurance premiums for the exotic car are a major cost. Such cars are expensive to repair and replace. Since repair costs are high, so are the premiums. Cars which appear sexy and fast are also seen as a risk. Showing off the car’s power by driving fast is always an attraction. Combined with the high repair costs, insurers consider this a high-risk class of drivers. Annual costs will be many times higher than for regular cars.

Maintenance and Repairs

Maintenance on an exotic car is also rarely routine and therefore it is inexpensive. Oil changes, tyre replacements and other regular servicing tend to be much pricier because of the need for exotic (and correspondingly expensive) parts and professionally trained laborers. Finding someone to work on the car can be especially time-consuming and difficult: a mechanic fully capable of performing these services may be found in a specialist service center or dealership.

Costs related to repairs can also be significant. Sometimes even simple problems will cost a lot of money to fix, while bigger ones can be extremely costly. Parts are often imported, so this can also contribute to how much a repair will cost, and can lead to waits of many months while parts are sourced and the job completed.

Fuel Costs

Fuel consumption is one of the  important characteristics of exotic cars. Their engines are improved for performance and their speed. Therefore, their consumption will be high. Additionally, gas might cost much more since the cars will need premium gas. In the long term, lots of costs are due to fuel and you’ll need to drop by the fuel station more frequently when you are using your exotic.

Storage

In order to maintain its value, an exotic car must be properly stored away from the elements. Thousands of dollars invested in such a car could be lost if it were exposed to excessively hot or cold weather conditions – or if it were exposed to rain or snow. You could always store it in a climate-controlled garage, but even a simple locked storage facility will run a couple hundreds of dollars a month. Or if you have space at home, you might need to invest in garage carpet or a storage solution.

Licensing and Registration

Then for licensing and registration, exotic cars generally come with much higher licensing and registration fees than an ordinary, regular car – and for individuals living in a state, county, or city where there is an additional personal property tax, the tax alone can be a significant amount due to the high value of the car itself.

Customization and Upgrades

Indeed, the cost owner’s of such exotic cars also love doing things like upgrading the engine, adding after-market parts or stylising the interior, all of which have the potential to make the car even more expensive and exclusive. Such modifications can even cost tens of thousands of dollars or even more.

Resale Challenges

Selling an exotic car can be tedious and a real chore. As opposed to a regular car, your target market is small and much less liquid, meaning you might not get a willing buyer right away. Your buyer can be very picky, usually asking for a lot of documentation and evidence about the car’s condition and its history.

Financing Costs

For example, if you wish to fund the purchase of an exotic car, you can obtain credit from the bank because you have an asset and equity you are leveraging (the car itself). However, you’ll likely have to pay high-interest rates because the lenders are loaning you a considerable sum of money on the basis of perceived risk. The total amount you’ll eventually have to pay back for a car through these inflated interest costs could be a seriously greater of what you actually borrowed.

Taxes

Sales tax on an exotic car might vary from state to state, but in many states it can be substantial. On top of the sales tax, some states also impose a luxury tax, which can add tens of thousands of dollars to the total, depending on where you live. This means considerable extra charges on top of the price of the car.

Limited Use

People often buy exotic cars but don’t use them. This is because exotic cars are low and provide very little storage space for things, combined with the high cost of traveling for many owners. Exotic cars are very expensive and therefore many owners will barely drive them regularly because driving them every day would be a waste of money. Having an exotic car usually means the owner doesn’t drive it regularly and usually spends most of the time taking up space in the garage.

Enthusiast Communities and Events

Car shows, track days and other events are all part of the exotic car ownership experience and can get expensive as well, with entry fees, travel and even special insurance. These activities might be neat, but they add to the overall cost of an exotic car.