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Why Are German Cars More Expensive

Posted on 11/20/2017

Even among luxury vehicles, purchase price and maintenance on German autos tends to be a bit higher than their American and Asian counterparts, though many would argue that the difference in price is more than justified by the quality, prestige, and driving experience. Are you really just paying for quality, though? What is it that makes German cars more expensive?

Labor Costs

Most German cars are made, unsurprisingly, in Germany. Even BMW and Mercedes, which have manufacturing plants in the United States, are assembled from components made in Europe.

European labor costs are much higher. Especially in developed countries like Germany, the United Kingdom, and Belgium, high wages and taxes make manufacturing far more expensive than in the Americas and Asia. This is one of the reasons German automakers have plants in other countries - they can save a little money and sell vehicles at a lower price by outsourcing assembly to a cheaper labor force.

Those higher German labor costs get passed on to you, the end consumer. Assembling certain models in the USA lowers the retail price of those models a certain amount, but with components and parts still manufactured in Germany, your import is still going to cost a little more in initial price and some repairs.

Exchange Rates

The values of local currencies fluctuate, making global commerce just a little more tricky than manufacturing and selling domestically. Exchange rates mean that $1 American today might be more or less valuable in Germany next week, and with constant fluctuations, it can be difficult to predict how much a company overseas needs to charge for their products to generate the right amount of revenue after currency exchange.

In order to offset any losses that might occur due to fluctuations in exchange rates, foreign companies like German automakers pad their pricing a bit so that they can absorb a little of that uncertainty. Without that margin, German car prices would be in constant flux as the relative global markets adjust.

Engineering and Quality

Ultimately, if drivers didn’t find luxury German cars worth the premium price tag, they wouldn’t buy them.

German automakers are known for using higher quality materials and more meticulously engineered designs to create great vehicles that are fun to drive. Those better materials cost more, and when your car’s entire interior is built with quality in mind instead of economy, the base cost adds up. Now, take into account the details like high end suspension systems, the precise design and testing that goes into creating each vehicle model, and even the psychological research that German engineers use to determine exactly what drivers want from their cars, and you start to understand the price point.

Branding

Let’s be honest here - people are willing to pay a premium for anything they consider to be a status symbol. A lot of luxury German cars are expensive because if they were cheap, they wouldn’t be the same product anymore.

Brands like Mercedes-Benz, BMW, and now even Porsche offer lower priced models so that middle-class buyers have options, too, but the real brand value comes from exclusive vehicles at exclusive pricing. If everyone could afford a Porsche, it almost wouldn’t be a Porsche anymore.

That’s not a disparaging statement, either. There is real value in exclusivity, and since German cars really are higher quality, the brand values and reputations are well deserved.

There’s one side effect to brand value that isn’t strictly necessary, though.

Dealership Pricing

Since German brands are more expensive, US dealerships selling German cars charge premium rates for everything, whether the price is justified or not.

You might not know this, but dealerships don’t make much of their profit from selling cars. They do make some profit from car sales, of course. It’s just much less than you think. Most of the profit a dealership makes is generated by their parts and service department and all the maintenance and repair they do on the car they sold you.

Since that’s the big moneymaker for dealerships, they charge a premium rate for their parts and labor, and they provide maintenance and service even if it isn’t strictly necessary for the health of your vehicle.

At least you can reduce this part of your German auto ownership expenses. By going to a certified and licensed specialist in German cars, you get only the service you need at a fair market price, thereby cutting out the inflated dealer margins. Your car does need maintenance, and parts can be more expensive, but prices at reputable third parties are far more reasonable than the dealership.

The bottom line is that German autos are top-notch products with top-shelf pricing. You’re the only one that can decide whether or not there’s enough value there for you to make it worth the expense.

Are Mercedes Expensive to Maintain

Posted on 11/16/2017

Owning a luxury car is both a pleasure and a responsibility. The superior feel and performance of a car like a Mercedes Benz comes largely from the fine tuning and careful engineering that went into its creation. Those finely tuned systems need regular maintenance, though, if they’re going to keep performing at top efficiency.

Are Mercedes expensive to maintain? That depends largely on what you consider expensive, and to what you’re comparing your maintenance costs.

Compared to an average midsize sedan, Mercedes service and maintenance might seem high. Plus, the older your car, the more maintenance is going to be required as things wear out and need repair or replacement.

On the other hand, independent studies have shown that Mercedes vehicles last longer than similar luxury brands before needing serious maintenance. When comparing Mercedes with other brands in its class, Mercedes Benz maintenance doesn’t look unreasonable at all...and maintenance costs are almost always far lower than the price of neglect.

If you’re considering upgrading to a Mercedes or similar luxury vehicles, you can expect maintenance and upkeep costs to increase accordingly.

Mercedes Benz Maintenance

Mercedes Benz service recommendations follow a regular schedule. The dealership will ask you to return at 2,000 miles for your first oil change, and at every 10,000 miles for service. Those 10,000 mile checkups alternate between Service A (minor service) and Service B (major service) depending on total mileage and the last maintenance you had completed.

Service A mostly covers oil and a basic inspection. Service B includes an inspection, your oil, your filters, and checks and updates for your car’s computer systems. Of course, additional service is performed as needed.

Going in for that regular service is more important than you might think.

Most people don’t realize how much modern cars rely on computers, and those computers need updates to continue functioning properly. Software updates are part of your Mercedes service schedule, and that’s one part of your car’s maintenance that you can’t do at home.

At the same time, taking your Mercedes for service at the dealership is often the most expensive way to maintain your car. Dealerships make more profits from servicing vehicles than they do from selling them, and when you go to a Mercedes dealership for Service A or Service B, they’ll perform all tasks on that schedule whether they’re needed immediately or not.

By taking your vehicle to a certified 3rd party specializing in German cars, you’ll save money and only get the maintenance that you need. Check your warranty and make sure that the shop you choose is certified - using some independent shops may void your warranty.

Your Other Maintenance Expenses

Proper upkeep involves more than an annual trip to a trusted mechanic for service.

The way you care for your car at home and on the road affects your vehicle’s lifespan and continued performance. If a check engine light comes on or you feel that your Mercedes isn’t running as well as it should, take it in for service whether the maintenance schedule says it’s time or not. Letting potential problems go can create much more expensive headaches later.

Regular upkeep for a luxury car like a Mercedes is going to be slightly higher than something like a popular midsize sedan.

Luxury vehicles are designed to run on premium fuel, while commuter cars are generally made for regular gas. Your Mercedes engine is tuned to perform with that higher octane, so while regular fuel will technically work, it can cause problems over time. In many cases, your luxury vehicle will also get slightly poorer gas mileage than the family sedan, so fuel costs are higher and you need to fill up more often.

Insurance is higher for luxury vehicles, too. If you’re unsure about how much your insurance costs will change, get insurance quotes before you make a purchasing decision. Even an older, entry-level luxury vehicle will raise your rates.

Perhaps the biggest expense involved in Mercedes upkeep is the cost of repairs and parts.

You’ll save a significant amount of money by using a certified independent shop to perform repairs instead of going to a dealership, and it’s far easier to find parts for modern vehicles than it used to be. Some components still might have to come from Germany, though, and since it takes more skill and time to work on a Mercedes, parts and labor costs are generally going to be higher for a Mercedes Benz than they are for lower priced, domestic vehicles.

The Bottom Line

Luxury vehicles in general are the most expensive to own and maintain, and the costs might be more visible because owners of luxury vehicles are less likely to be lax about upkeep.

Whether you own a luxury vehicle or not, though, the costs of regular maintenance are far lower than the cost of neglect. Maintenance is part of the total cost of ownership for any vehicle, and it should be factored in before you decide to make a purchase.

GERMAN MOTORS OFFERS RENNTECH PERFORMANCE

Posted on 12/04/2015

Performance without compromise. This is the foundation upon which RENNtech has built their reputation. Established in 1989 by Hartmut Feyhl, RENNtech has evolved and grown from humble beginnings into the foremost authority on luxury automobile performance tuning and offers complete tuning solutions for Mercedes Benz, Porsche, VW, Audi and Bentley vehicles.

Over the years, RENNtech has developed high-performance products for virtually all Mercedes-Benz AMG vehicles (including the commercial Mercedes Sprinter van and SMART vehicles). Some of the most notable among these are the 200 mph RENNtech E7.4RS (which was called fastest sedan in the world by Car and Driver in 1996) and the 2006 "Chrome SL" show car—an SL-based project entirely covered in chrome. Each of these vehicles featured extreme performance, upgraded luxury features, and a fit and finish that rivaled factory vehicles.

Historically, RENNtech has been a prominent Mercedes-Benz specialist, and Feyhl himself is regarded by many as the USA's foremost authority on Mercedes tuning. His vast experience comes from his 12 years spent at AMG well before the tuning company became part of Mercedes-Benz in 1999, then going onto serve as that company's North American technical director prior to branching out on his own to start RENNtech.

Recently, RENNtech has begun to offer performance products for other marques specifically Porsche, Volkswagen/Audi, BMW and Bentley vehicles. The product offerings focus on RENNtech's core competencies such as performance engine tuning, suspension, exhaust and custom fabrication.

RENNtech is an authorized Akrapovic exhaust dealer and also the exclusive North & South American distributor for Aixro rotary race engines. Our Aixro race engines also power the worlds fastest and exclusive racing karts, the RENNtech SLR kart, which is built in house by RENNtech.

RENNtech designs, engineers and manufacturers their proprietary line of tuning products in-house at our facility which features a full fabrication and machine shop with CNC and rapid prototype capabilities; an in house performance dyno, complete engine management and software tuning capabilities; a complete service/repair/installation facility and a full time design, engineering and sales staff.

German Motors is proud to offer Las Vegas drivers of all marques, Renntech, performance for your higline vehicle. ECU Upgrades, intake modifications and exhaust. If you are looking to take your AMG Mercedes Benz to the next level, contact German Motors today.

German Motors

3379 Sammy Davis Jr Drive

Las Vegas, NV 89109

2015 Lamborghini Huracan

Posted on 11/30/2015

Lamborghini Huracan –

Lamborghini is widely known for being the automotive marque that loves to push

the limit, and the successor to the famous Gallardo is no exception, welcome to the

Lamborghini Huracan. Named for a famous fighting bull renowned for its strength

and courage, the Lamborghini Huracan does its best to honor the namesake. With

its gorgeous and absolute design, groundbreaking performance and unparalleled

quality, the Huracan is a supercar unto itself.

The Huracan is immersive luxury meets hardcore race car. With the finest tufted

leather and alacantra interior, the fighter jet inspired instrumentation and controls

make the interior very cosseting, while at the helm of a 610 horsepower track

monster. A true fighting bull in a bespoke suit makes the Lamborghini Huracan truly

a one of a kind experience. Lamborghini has once again set the benchmark for

redefining the supercar.

The new 5.2 liter V10 engine in the Huracán generates its massive 610 hp at 8,250

rpm and a maximum torque of 560 Nm at 6,500 rpm. The new "Iniezione Diretta

Stratificata" combines direct and indirect injection - achieving an increase in power

and torque compared with its successor and a decrease in fuel consumption and

emissions as well. Mated to the 7-speed dual clutch transmission, Lamborghini's

new 'Doppia Frizione' (Dual Clutch) gearbox, the transmission performs differently

depending on the mode the driver has selected. Lamborghini’s special all-wheel

drive system that is electronically controlled and therefore faster and extremely

precise in transferring the torque between axles, according to the road situation and

the dynamic mode.

With incredible power, comes incredible speed. The Lamborghini Huracan's top

speed is over 325 km/h (202 mph) The Huracan can also accelerate from 0 to

100 km/h (62 mph) in 3.2 seconds and from 0 to 200 km/h (124 mph) in just 9.9

seconds. With a relatively light weight of 1,422 kg (3,135 lb), the Huracán has a

power-to-weight ratio of 2.36 kg (5.20 lb) per horsepower. Rivalling the same power

to weight ratio of the venerable Bugatti Veyron.

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