The True Cost of Ownership: Depreciation, Insurance & Maintenance for Luxury Cars

The True Cost of Ownership: Depreciation, Insurance & Maintenance for Luxury Cars

Posted on September 1, 2025

Owning a luxury vehicle in Ontario is as much about the lifestyle as it is about the car itself. From the elegant design and advanced technology to the prestige of the badge on the hood, driving something refined and powerful feels great but the costs that come after the purchase aren’t always as glamorous.

At Faraz Auto Sales in North York, ON, we work with buyers who understand value, but many are still surprised by what ownership really looks like long-term. So let’s break it down: beyond the monthly payment or purchase price, three big factors can shape the true cost of owning a luxury car depreciation, insurance, and maintenance.

Depreciation: The Silent Value Drop

Depreciation is one of the biggest expenses luxury car owners face, even though it doesn’t show up as a monthly bill. As soon as you drive a new car off the lot, it starts to lose value, and with premium vehicles, this happens faster and more dramatically than with economy cars.

Why? Luxury vehicles typically come loaded with high-end tech and custom features, which are costly upfront but may not hold their value the same way over time. On top of that, new models and refreshes roll out quickly, meaning last year’s car can look outdated fast.

That’s why more luxury shoppers are turning to high-quality pre-owned vehicles, which have already gone through their steepest depreciation drop.

Insurance: More Coverage, Higher Premiums

It’s no secret that luxury cars cost more to insure. But why is it so?Insurance premiums are based on repair costs, replacement value, theft risk, and safety ratings, all of which can be higher with luxury models. If you drive something like a BMW 7 Series, Mercedes-Benz S-Class, or Range Rover, you’re not just covering a higher sticker price; you’re also protecting expensive electronics, rare parts, and specialized service.

Some luxury vehicles also fall into higher theft categories, which raises premiums. And since high-end models often pack a lot of horsepower under the hood, insurers factor in the potential for higher-speed collisions or performance-related risk. High-density areas tend to carry higher insurance costs due to increased chances of accidents or theft.

You can lower your insurance by bundling policies, increasing your deductible, or shopping around for quotes. But it’s always smart to factor this cost into your ownership budget, especially when comparing models or brands.

Maintenance and Repairs: Premium Means Precision

Here’s another key part of the luxury ownership puzzle: maintenance. While premium vehicles are known for high-quality engineering, they also require higher-grade care to stay that way.

Routine maintenance—like oil changes, brake service, and tire rotations, usually costs more on luxury vehicles because they require specific parts, premium fluids, and skilled technicians. Something as basic as an oil change might cost $100 or more, and a brake job on a high-performance model could run well into the thousands depending on the setup.

Then there are wear items like run-flat tires, performance brake pads, or adaptive suspension components, these are more expensive to replace than conventional parts found in non-luxury vehicles. If you’re shopping used, it's important to ask about the vehicle’s service history and whether any key components, like timing belts, batteries (in hybrids/EVs), or brakes have been replaced. A car with a clean maintenance record can save you thousands down the road.

Don’t Forget Fuel and Features

Fuel is another cost to consider especially with powerful gas engines that demand premium fuel. Many luxury sedans and SUVs with turbocharged or V6/V8 engines aren’t designed to run on regular unleaded, and the difference at the pump adds up over time.

That said, newer luxury models, especially hybrids or plug-in hybrids, are getting much more fuel-efficient.  Also consider the cost of certain features after the fact. Some brands now offer subscription-based access to specific functions, like remote start or advanced navigation updates adding to your annual costs.

Plan Ahead, Drive Smart

Owning a luxury car in Ontario isn’t just about the thrill, it’s also about being informed. By planning for depreciation, insurance, and maintenance from the start, you’ll avoid surprises and enjoy your premium driving experience with peace of mind.

At Faraz Auto Sales in North York, ON, we’re here to help you find the right luxury vehicle with transparent pricing and expert advice. Whether you’re looking at a high-end gas model, an efficient plug-in hybrid, or an electric performance car, we’ll walk you through all the long-term costs so you can make the smartest choice for your lifestyle.