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Hard to buy, hard to hold: the real price of luxury cars

Do you notice more and more luxury cars around you?

You are not wrong, but if you thought that buying a car for more than half a million shekels is the hard part of the story, wait and see how much it costs to own it

Tags

• prestige

• Luxury Cars

• Premium

• Mercedes

• BMW

• Udi

Keenan Cohen

Sunday, 14 March 2021, 23:22 Updated: 23:45

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BMW X7 and Land Rover Range Rover: Buying them is not the hard part (Photo: Rami Gilboa, Rami Gilboa)

In the last five years, the Israeli luxury market has broken records every year, when in 2020 the Corona crisis recorded a record of 3,272 cars worth over half a million shekels.

According to data from the Carzon website, in 2015 1,830 luxury vehicles hit the road, while in 2020, as mentioned, no less than 3,272 units were sold, a figure that embodies a sharp increase of 79%.

According to the data, despite the fact that 2020 was supposed to be a year in which Israelis would maintain a stricter spending policy and not rush to purchase vehicles worth half a million shekels or more - the data shows that there was an 8% increase in the number of vehicles sold, compared to 2019. In it, 3,016 vehicles worth more than half a million shekels hit the road.

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To the full article

Consistent climbing since 2015 (Photo: Screenshot, Carzon)

Divided by brands, Mercedes leads the local "penny parade" when in the period from 2015-2020.

This is no less than 5,580 units.

It is followed by BMW with dedication data of 3,367 vehicles.

Udi, which closes the German trio, is also recording considerable success with 3,128 vehicles.

In fourth place is the Land Rover brand, with 2,293 vehicles delivered over the said period.

In fourth place, and a considerable gap from the top three Germans, is Porsche, which sold 837 luxury vehicles at a minimum price of half a million shekels.

Volvo also presents impressive dedication figures with 707 vehicles.

The other brands delivered a 'relatively' low number of vehicles, according to the following division: Maserati (356), Lexus (234), Jaguar (197), Cadillac (90), Jeep and Aston Martin (74 each), Bentley and Alfa Romeo (52), Ferrari (48).

Mercedes GLE, best-selling (Photo: Keinan Cohen, Keinan Cohen)

Expensive to buy, expensive to maintain

However, the depth of the pocket required for the ownership of a luxury vehicle does not amount to the initial capital that is required to be put in favor of its purchase, but also to the maintenance costs and the loss of aggressive value that this entails.

Take for example the two best-selling vehicles in the last five years in this exclusive group - Mercedes GLE and Audi Q7, with an average of 15 percent impairment in the first two years and 14 percent in the third year, we are talking about orders of magnitude of about 90,000 shekels in the first year Only in the case of the Audi and about 105,000 shekels in the case of the Mercedes depending on the level of finish.

If you continue to climb up these numbers can be broken down into meanings of daily loss of value in alarming amounts.

How scary?

The only depreciation of the Bentley Continental GT equipped or Mercedes AMG GT, before treatments, before insurance and before you put a drop of fuel in them is about 1,000 shekels - per day.

Bentley Continental GT, depreciation of NIS 1,000 per day for a fully equipped one (Photo: Keenan Cohen, Keenan Cohen)

And what happens when something goes wrong, but really goes wrong.

Suppose the 2019 Audi Q7 gearbox?

Well according to the importer's replacement price list, you may wave goodbye to the amount of NIS 94,306 for one complete with all the extras.

Did a Range Rover Sport review light come on?

Hope this is not the catalytic converter that will cost you 43,235 shekels.

Suddenly the 15,435 shekels for the engine in the BMW 850 Coupe does not look so terrible.

And we have not yet touched on the amounts of vehicle parts or lighting that could be damaged, "Wait a minute" say - here you can roll the expense on the insurance.

Well, that's not cheap either.

The best-selling models, Mercedes leads by a wide margin (Photo: screenshot, Carzon)

The aspect of insurance

Zohar and Avi Tzadik: "A young driver will increase the premium to 5% of the value of the vehicle" (Photo: PR)

For those who can afford to purchase such vehicles, and meet the insane annual maintenance costs, and there happen to be children who also hold a driver’s license, well they should know that the cost of the annual comprehensive premium will be higher.

Zohar and Avi Tzadik, owners of the Sabra insurance agency, which specializes in luxury car insurance, among other things: "In the case of an insured with a clean insurance history and two drivers named in the policy, both over the age of 40, a premium of 2.5% can be reached." The calculation was performed) ", this is the classic and simple case.

In other cases, the premium will be calculated on the basis of a rate of 3%.

"At the same time, a car owner who wants to include in the insurance of this vehicle, and in fact in all luxury vehicles, also young drivers - should take into account that the premium can in some cases even rise to a rate of up to 5% of the value of the vehicle."

Does the roof rise?

Also the price of the premium (Photo: Keinan Cohen)

However, the amount of the premium is not the only difference between regular car insurance and luxury car insurance;

Because here there is also a significant difference in the amount of the deductible that the insured will pay in the event of the policy being activated.

Thus, if a regular policy has a deductible of up to a few thousand shekels, "in the case of a luxury car," the Tzadik brothers explain, "it easily reaches a sum of 15,000 shekels."

And what is the deductible that will appear in a luxury car policy with a sunroof?

It turns out that this detail also has meaning.

For in a policy that covers an accident, that is, an unforeseen event derived from the statistics of accidents and involvement of such cars in which and their cost are defined as 'sensitive coverage', in such a case the agency says: The self also climbs to the amount of NIS 30,000. "

The owner of the Porsche thought of saving the insurance cost of the car worth NIS 1.2 million and was left without the money and without the Porsche (Photo: Keinan Cohen, Apex Nürburg, Claire Kesselaar, Felix Töllich)

The most advanced is the most lucrative

Compulsory insurance starting at NIS 54 per month

By the insurance company WE SURE

Purchase >>

So for some of the customers of these luxury cars, spending at this height is a reasonable thing, because in life you know, everything is relative. But what about those who in light of the high sums give up insurance? Well, that's not always a good idea. He learned this lesson in the flesh of a Porsche owner who cost NIS 1.2 million. Since the vehicle was used mainly for weekend travel, he believed that there was no place to pay the premium that the insurance company demanded from him but unfortunately, he was involved in a car accident and the vehicle was irreparably disabled. "That's how NIS 1.2 million evaporated for them," says Tzadik. "I warned him against Murphy's law but he fortified himself in his position that there was no need to purchase insurance, and eventually he found himself with a disabled vehicle and no insurance."

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