Buying your first luxury car is exciting, and you want to keep it in good condition. Luxury cars are prime targets among criminals whether for theft or vandalism, so you need to have suitable insurance to protect your expense. You should also know how to take care of your car, and you should be aware of your financing choices before you make a purchase. Consider these typical mistakes that people make with their luxury cars.
Choosing the Wrong Financing Option
Aside from paying cash, financing options for a luxury car include dealer financing, secured loans, unsecured loans, and business loans. Because you can afford a higher monthly payment, it’s best to choose a loan in which you pay the least amount overall for the car. How much your monthly payment will be depends on your credit score and your car model. Monthly payments can be as low as $300 to $400 per month for a luxury car. A rule of thumb you can use is to not exceed 10 percent of your income on your new car’s monthly payment.
Using Tap Water to Cool the Engine
You should never use tap water in the cooling system because it can damage the car, corrode the engine, and make the car more likely to overheat again. According to Applied Speed, “there are certain radiators or other components that can handle tap water, but for the most part it’s more dangerous than not. If you have to use water, use distilled water.” For optimal performance and protecting your expensive vehicle, only add the manufacturer’s recommended coolant. Even using the wrong coolant in your car can damage it. Another problem with using water is that it could freeze inside the cooling system during cold weather. And a frozen cooling system can break the engine.
Failing to Fight Speeding Tickets
Luxury car drivers are more likely to get tickets. Some people may want to pay traffic tickets to not be hassled with the problem. When you pay the fine for a traffic ticket, the court views your payment as an admission of guilt. As a result, your insurance premiums can skyrocket. According to Eric Ramos, “it is never recommended you pay a citation without fighting the charge you are facing.” Having a traffic citation dismissed is easier than many people think.
Failing to Obtain Adequate Insurance
You’ll need luxury auto insurance when you have a luxury car. Minimum auto insurance often doesn’t cover most types of damage that may occur to a luxury car. Luxury cars are more likely to be stolen or vandalized than other cars. Repairs for luxury cars are more expensive as well. Luxury auto insurance is designed specifically for protecting these types of cars as minimum auto insurance policies don’t cover such expensive damages. According to The Zebra, “luxury car insurance is often more expensive than insurance for a standard vehicle. Because car insurance is designed to protect your vehicle, the high price of a luxury car inevitably leads to higher insurance costs. The average annual insurance premium for a luxury car was about 34% higher than the cost of insuring a moderately priced sedan.”
Avoid making the four mistakes listed above to protect your luxury car and keep more money in your bank account. Although you may have more money at your disposal, it’s good to minimize costs as much as possible. Minor costs add up over time, and that money could have gone into your investment account or been used for another purpose.
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