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When you hear the words luxury vehicle, what comes to mind. More often than not the first image that may pop into your head is that of a car like a Mercedes, Lexus, Cadillac, or BMW with all the trimmings and extra options that constitute the typical definition of what luxury is. The truth is that the market for luxury vehicles is far more complex than many consumers might think. Most notably, luxury trucks and sport utility vehicles are becoming exceedingly popular in the luxury market and the trend may be much more permanent that experts ever thought possible.
This trend is more than automakers in suits deciding to fluff up the truck and sport utility market, there is research to back up the claim that not only are luxury trucks more popular now, they are also more affordable. A recent analysis by Forbes on 2011 luxury brands found that overall it is much more economical and trendy to purchase a luxury truck or sport utility than it is to buy a car. Vehicles that were included in the analysis were those with a MSRP of more than $40,000 which puts them into the luxury category.
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The Forbes analysis focused on five-year total expenses of factors like fuel, maintenance, repairs, average insurance rates, taxes, interest, incidental costs, as well as depreciation. The study used an average usage of 15,000 miles per year and used a complex formula to determine average fuel costs. Depreciation is the most important factor in determining how much a luxury vehicle will cost a car owner and is important to carefully consider before making a luxury car purchase. Many times consumers get overwhelmed and anxious when buying a vehicle and overlook extraneous long-term costs such as fuel expenses and depreciation which can be a costly mistake.
Some of the best luxury trucks and sport utilities to buy on the Forbes list include models such as the Honda Odyssey which ranked number two and the Chevrolet Suburban 1500 LS which came in at number ten on the list of affordable luxury cars. Trucks on the list included models like the Chevy Silverado Hybrid at number four and the GMC Sierra Hybrid at the number six spot. Trucks are actually showing the most growth in the luxury market and consumers seem to be content with their luxury truck purchases.
Luxury vehicles are still very popular in the auto industry and with an economic recovery within sight, the trend may continue. If you are in the market for a luxury vehicle remember to consider costs of ownership before you buy. Remember, buying luxury vehicle does not always mean buying a car.
