3 Luxury Cars With Repair Costs That Outweigh Value
Luxury cars aren't known for their affordability, and they can even cost more to fix than they're worth.
According to the latest data from Kelley Blue Book (KBB), the average transaction price for an entry-level luxury car was $56,846 in September 2025, while higher-end models average about $124,702. That's more than double the price of the industry average of $50,080.
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While the sticker price is already steep, the real financial strain often shows up later. Here are three luxury cars you can expect repair and maintenance costs to outweigh the investment.
Tesla
"Once a Tesla needs a new battery, it's often a better option to buy a new car than to buy a battery that is worth more than what the car is worth," Melanie Musson, auto industry expert with AutoInsurance.org, wrote in an email. "Depending on the car and the battery required, a new one could cost $15,000 or more."
In some cases, EV batteries can last between 10 and 20 years, according to J.D. Power, but there are factors that can reduce their lifespan. Batteries degrade faster in hotter climates, and charging the battery at a Level 3 fast charging station can overheat the battery as the process is too quick.
Plus, if you're battery lasts that long, you may need to pay out of pocket. Tesla's entry-level options only provide a warranty duration of eight years or 100,000 miles, but premium models come with coverage of up to 150,000 miles.
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Land Rover
"Land Rovers can be a nightmare to work on. They're hard to repair, and the parts are expensive," Musson wrote. "If you have to get a new transmission, it could cost $10,000. The suspension, which is prone to failure, will cost around $4,000 to repair. Once repairs start piling up, it's easy to see why buying one past its warranty is risky."
According to Consumer Reports, Land Rovers have the highest maintenance and repair costs over 10 years of ownership, averaging about $19,460 over the decade.
Mercedes-Benz
Mercedes-Benz is also known for its costly repairs.
"They depreciate quickly, so at a certain point, it's not worth rebuilding the transmission that would cost as much as $6,000," Musson explained. "When Mercedes-Benz vehicles start having problems regularly, it's probably a good idea to get a replacement vehicle."
Consumer Affairs pointed out Mercedes-Benz models average around $1,000 to $1,500 yearly for routine service -- which is more than most nonluxury brands.
And when compared with other luxury brands, Consumer Reports noted Mercedes costs more than twice as much to maintain and repair over ten years as similarly-priced luxury brands like Lincoln.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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