This is more of a curiosity question. In the market, we can find cars ranging from a $12-13K Hyundai accent to $2.5mil Bugatti Veyron SS. While I understand the difference in quality between the 12K Hyundai and a 24K Honda ( Own both ), I am kind of confused on the value we get by paying further more... Did a test drive of an Audi over the weekend, but not sure where the extra 12K is going into. Sure it has some extra features, still the price difference seems pretty steep. Even more confusing for cars north of the 40-50K mark. Is it all brand name?
Location: Amidst a glow in the sky.
Posted on: 27-06-12 12:58:39
All cars do the basic job - take you from one place to another. It is the added features like driving experience / speed / acceleration / road stability / luxury and of course brand that adds to the price.
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Speed is limited by traffic and posted limits. So not really a differentiating factor. Even the cheapest cars ability exceeds this limitation.
Acceleration - whether the car can reach 100kmph in 2.8 sec or 5 sec is really not that material in street driving. Yes, the cheapest ones like my Hyundai takes even more time and is a factor. But once we get into the 30K range, cars are in the 5-7 sec range. Paying more does't really bring much value.
I asked the Audi sales guy about the added value the 12K brings over a similarly featured Honda and he is like 'no comparison'. He won't/can't give me any points
Location: Amidst a glow in the sky.
Posted on: 27-06-12 17:42:13
It all depends on one's preferences. There is a big market out there who wants all these added features and are ready to pay the price for it. It may not be important for you but there are other things that may be important for you and not for others :-)
Shauq da mul nahin :-)
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__________________________________
George Malley: Hey, would you, uh, love me the rest of my life?
Lace Pennamin: No. I'm gonna love you for the rest of mine.
__________________________________
None of us knows God until someone introduces us - Life of Pi
Location: Western Hemisphere
Posted on: 27-06-12 18:40:09
Quote:
Originally posted by aqua
Speed is limited by traffic and posted limits. So not really a differentiating factor. Even the cheapest cars ability exceeds this limitation.
Acceleration - whether the car can reach 100kmph in 2.8 sec or 5 sec is really not that material in street driving. Yes, the cheapest ones like my Hyundai takes even more time and is a factor. But once we get into the 30K range, cars are in the 5-7 sec range. Paying more does't really bring much value.
I asked the Audi sales guy about the added value the 12K brings over a similarly featured Honda and he is like 'no comparison'. He won't/can't give me any points
For some a metal box with wheels, brakes and gas and preferably couple of seats might work as a car and see value in it. Some might look for seats that may do more than allowing one's butt and they see a value in it. Some are brand loyalists. If everyone saw the metal box as the value, there wouldn't be variety on the roads.
As far as why price points differ, it is a matter of what goes in underneath the car and how much the consumer is willing to pay. Typically, SUVs used to carry a hefty profit margin - almost up to $10k. The quality of parts used are different as well. Suspensions, exhaust systems, shift quality, shift speeds, durability of a lot of parts, finish, mode of finish, type of vibration controls, type of electronics, all play a role in the pricing.
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Dimple2001
Repair/maintenance cost also goes higher as the brand name gets bigger..
100K+ Expensive cars are for those who like having a wardrobe also have a fleet. They wear cars like clothes and drive different cars according to ocasions and locations.
