Why Are Mercedes So Expensive? (4 Reasons)

Mercedes-Benz is a brand best known for its luxury cars. While some of the lower-tier models start at $45,000, the higher-end cars can cost well over $100,000. 

So, why are Mercedes so expensive?

Mercedes are so expensive because they are a luxury brand that uses expensive parts and the latest technology. Unlike car brands that mass produce, Mercedes manufactures all of its own parts, and spend a lot of money on innovation.

Continue reading to find out why Mercedes are so expensive to maintain, and if they are worth the money. 

4 Reasons Why Mercedes Are So Expensive

Let’s take a closer look at the reasons why Mercedes are so expensive.

1. Brand Positioning/Reputation

Mercedes-Benz has built a reputation for producing high-quality luxury cars. They are now seen as a status symbol, and people are more than willing to pay a premium price. 

2. They Produce Innovative, Luxury Vehicles 

Another reason why Mercedes can charge so much for their cars is that they produce innovative luxury vehicles. This means that each generation includes the newest technology, most up-to-date materials, and best features. 

While this makes the cars great to drive, it means that Mercedes must spend a lot of money on research and development. Therefore, each car has to be sold at a high price. 

3. They Manufacture Their Own Parts

Unlike many other car manufacturers, Mercedes produces many of its own parts in Germany and the US, so the cost of manufacturing is more than it would be if the process were outsourced. 

The main factory is located in Stuttgart-Untertürkheim, Germany, and it currently employs approximately 19,000 people. Additionally, there are other plants around the country, where engines and various components are manufactured. 

In the US, the Mercedes-Benz plant is located in Tuscaloosa, Alabama. SUVs such as the GLE and the GLS are produced there and then sold around the country. Because labor is more expensive in the US than in other countries, Mercedes charges more for their cars. 

4. Safety Standards Are High 

Many people know that Mercedes cars are extremely safe, and they are happy to pay more to make sure they don’t put their families at risk when driving. According to the Insurance Institute for Highway Safety, the Mercedes-Benz E-Class sedan is the safest car currently available. 

To receive the label of Top Safety Pick+, the car’s crashworthiness was thoroughly evaluated. It was found that the crash prevention systems are highly effective. They successfully avoid or slow down collisions between two cars or between cars and pedestrians. 

Why Are Mercedes So Expensive To Maintain?

According to RepairPal, the average Mercedes will cost you more than $900 per year to maintain. In contrast, the national average is about $650. There are several reasons for this: 

  1. Many Mercedes parts are manufactured in Germany or the US. Although the company does have a factory in China, the bulk of its operations is in Europe and America. This increases the price of every part. 
  2. Oil changes are more expensive for Mercedes cars because the motor requires synthetic oil. 

When choosing a Mercedes, you should research the projected repair costs because there are significant differences between the models. For example, you might only spend around $724 per year on a Mercedes-Benz C350, but it’s likely that you will have to pay approximately $1,581 if you own a Mercedes-Benz S63 AMG. 

Related Article: Why Are Mercedes Oil Changes So Expensive? (Answered)

Why Are Mercedes So Expensive To Service?

Since Mercedes cars are specialized and require specialized parts and diagnostic tests, not every mechanic can work on them. Most Mercedes owners take their cars to official dealerships. Because these technicians are highly trained, they can charge more than an independent garage.

Why Are Mercedes So Expensive To Insure?

Since Mercedes are luxury vehicles, insurance is likely to be more expensive than for other cars. This is because it costs more to repair or replace an upmarket car than a budget one. 

Another reason why you can expect to pay a lot for Mercedes insurance is that many models have a high power output. Cars with high horsepower can potentially drive much faster and therefore cause more damage. The insurance company, therefore, takes on more risk and charges the driver more. 

The cost of Mercedes insurance varies greatly depending on the model you’ve chosen. On average, drivers spend $4,201 per year. However, those with a GLA 250 might only need to spend $2,318. The most expensive Mercedes to insure is the AMT GT S, which costs $8,081 per year. 

Why Are Mercedes Leases So Expensive?

Leasing a luxury car like a Mercedes is often extremely expensive because there are few incentives available, and the interest rates can be extremely high. This is because the demand is often higher than the supply, so dealerships can easily find buyers without having to offer special deals. 

Additionally, Mercedes and other luxury brands don’t offer zero-interest deals because they believe that this might cheapen their brand. Since these companies’ success depends on their upmarket reputation, affordability isn’t one of the goals. 

Why Are Mercedes Batteries So Expensive?

Most Mercedes batteries are made out of absorbent glass mat (AGM), which is one of the most expensive materials available. Since AGM is very durable, you can expect your battery to last a long time, but the initial cost is high. 

Other factors that affect the battery’s price are: 

  1. The lifespan: a more expensive long-life battery can last for up to five years, but a cheap one is likely to last only two years. 
  2. The size: a larger battery is more expensive than a smaller one. 
  3. The dealer: not all Mercedes batteries have a price set by the manufacturer, so the amount you pay might vary depending on where you buy it. 
  4. The warranty period: a battery with a good warranty might cost more, but it’s safer because you won’t pay if it malfunctions. 

Why Are Mercedes Tires So Expensive?

Most Mercedes models are compatible with a variety of tires, so you don’t necessarily have to buy the most expensive ones. However, many drivers choose expensive Mercedes tires because they are looking for high performance. 

Tires that are highly rated for their speed are often more expensive than average ones. What’s more, high-performance tires tend to break down more quickly, so they have to be replaced frequently. This adds to the total maintenance cost of a Mercedes. 

Why Are Mercedes Spark Plugs So Expensive?

Many drivers are surprised at the high price that is often quoted for the Mercedes spark plug replacement. At a dealership, you might pay hundreds of dollars for this service because there is a significant markup when you buy from a Mercedes dealer. 

Another reason why spark plugs for Mercedes cars can be very expensive is that they contain platinum. This metal is even more valuable than gold. 

To save money, many drivers buy their spark plugs online and install them on their own. This is often the best way to go, but it’s only possible if you’re good at DIY.

Related Article: How Long Do Mercedes Last? (Explained)

Is Mercedes Worth The Money?

There’s no doubt that Mercedes are expensive to buy and maintain. If you simply want a car to get you from A to B, this isn’t the best choice. You should go for a budget brand like Hyundai, Skoda, or Nissan instead. 

On the other hand, drivers who are looking for maximum performance might find that Mercedes is worth the price. For the past 90+ years, the company has brought out high-quality, durable cars every year. As a result, the brand comes with prestige that is hard to find anywhere else.

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