Driving a Mercedes is often seen as driving a luxury car.
The German manufacturing company specifically makes luxury cars for private owners and commercial owners.
Since a Mercedes is still just a car, you may wonder what it is that makes it so expensive.
Why Is Mercedes So Expensive? (10 Reasons)
Mercedes cars can cost as low as $25,000.
However, once you get into their high-performance cars, the price can increase well above $100,000.
The quality of parts that the company uses, its innovative technology, and its focus on providing preventative safety features are some of the reasons Mercedes has expensive prices.
Let’s look at these reasons in more detail.
1. Premium Parts
Mercedes is expensive because it uses premium parts in its manufacturing.
Because Mercedes is a luxury brand, the manufacturing company only uses the best parts.
They can’t release a high-performance vehicle with parts that are low in quality.
If they did, those parts wouldn’t last long when the driver pushes their car to its greatest potential.
Premium parts make Mercedes expensive because of their own cost.
They tend to use high-quality materials which aren’t the cheapest to harvest or source.
Mercedes has to spend more money to get the best materials.
There are other companies out there looking to get those parts as well.
Mercedes needs to put up an offer that ensures they’re the ones who get the materials.
That means paying a premium price for premium parts.
To make up for the difference, the company needs to sell its Mercedes cars at high prices.
It also takes trained mechanics to put those parts into the vehicle.
While the company likely uses automation to some degree, they also use human workers to ensure the parts are properly installed.
Since those mechanics have to work with premium parts rather than standard parts, they need special training.
That means it likely costs more to pay them.
All these associated costs make manufacturing Mercedes cars more expensive.
To cover the expenses, Mercedes has high prices.
A feature that many owners claim about their Mercedes cars is that they’re long-lasting.
They’ll buy a car and still be driving it several decades later.
There are a few reasons for this.
The primary one is that Mercedes builds its cars to last.
Since they use premium parts and high-quality materials, their cars are more durable.
They’re less prone to wear and tear.
Mercedes cars are also a status symbol.
They show wealth and prestige.
Mercedes owners want to hold onto their cars because it allows them to show off their status.
Some Mercedes cars are also classics.
They may be a rare model that the company doesn’t produce ever again.
Owners who love Mercedes cars may want to hold onto them because they like to show off their collections.
All these factors make Mercedes cars more expensive because it means the company produces fewer of them.
Fewer people are buying cars because their current one is still in service.
Other cars that are less durable tend to wear down quickly.
The owners of those cars need to replace them.
Manufacturers of cheaper cars keep the prices low because they know that people are going to buy them more frequently.
They can rely on frequent purchases.
Mercedes isn’t quite the same.
They make excellent cars with the anticipation that people are going to need to buy fewer of them.
To ensure their profits last, Mercedes puts higher prices on their cars.
3. Brand Name
Another major factor behind the expensive price tag on Mercedes is the brand name itself.
When people see a Mercedes or hear about it, they tend to immediately think of luxury cars.
That’s because Mercedes has built a reputation for itself over the decades as a luxury brand.
They put in the effort from the start to create a performance car that stood apart from the others.
Due to these efforts, the Mercedes name is now associated with luxury.
Luxury cars and other products tend to come with high price tags.
When an owner buys something that considers itself a luxury, then they’re prepared to pay a higher price tag.
They’re not looking to buy something that’s cheap.
Brand names also tend to make things more expensive because they’re deemed more legitimate to customers than generic brands.
Brand names market themselves while generic brands tend not to put as much effort into marketing.
Marketing matters since it sells the idea of what the product is and how it can serve or help a customer.
Mercedes markets itself as a luxury brand.
If you removed the Mercedes name from a car, then there’s a good chance the price would be cheaper.
Brand names make certain products a lot more expensive.
4. High Performance
One of the reasons Mercedes cars are part of a luxury brand is their high performance.
They’re able to reach top speeds quickly.
They last a long time.
They have great handling.
Making a high-performance car doesn’t come cheap.
Mercedes has to spend a good deal of money to make their cars as powerful as they are.
It all starts with research and development costs.
Mercedes needs to hire and pay the best engineers and designers.
Several car manufacturers produce luxury or performance cars.
To make sure they stand out from others, Mercedes has to have the best engineers at hand.
Those engineers then need to spend money and time looking at different prototypes.
Those all come with costs, especially if the prototypes aren’t ones that they go through with.
The prototype ends up being a waste of money.
Once they decide on a prototype, they then have to use resources to make it and implement it.
From there, Mercedes faces manufacturing costs.
They use expensive materials to make their parts.
Finally, Mercedes knows that certain clients are going to be more willing to pay more for a high-performance car.
All these factors together make Mercedes expensive because they produce high-performance cars.
5. Massage Seats
Mercedes is expensive because it has massage chairs.
Most standard cars don’t have massage chairs.
A few of them might have heated seats, but they don’t usually go to the extravagance of including chairs that massage the person sitting in them.
Massage chairs make Mercedes expensive for a few reasons.
The first is manufacturing costs.
Seats on their own have a certain expense.
Mercedes makes them more expensive by including extra parts to give the seats more features.
Massage chairs require far more parts.
Besides the actual technology to make the seats vibrate and massage, it also needs software.
The individual in the car needs to be able to turn on the massage features with a click on a panel.
Besides the manufacturing costs, there’s also the added appeal.
People with certain budgets may be more inclined to buy cars with massage seats than those without them.
They don’t need massage chairs to drive the car, but it is a nice luxury to have.
Some might even see it as a status symbol.
They have seats that can massage those who sit in them while other cars don’t.
As such, some people are more willing to pay higher prices for cars that include massage seats.
Mercedes has expensive prices because it spends extra money to include massage chairs in its cars.
6. Advanced Safety Features
Another reason Mercedes is expensive is the number of safety features that it includes in its cars.
Besides selling high-performance cars, Mercedes also ensures that they’re safe.
The company understands that by providing cars that are able to reach high speeds, they need to do what they can to protect those inside the car.
To do so, they include several different safety features.
One of those safety features is the number of sensors that Mercedes use.
The sensors keep track of cars that come too close to the car or when the driver starts to steer out of the lane.
When that happens, the sensor communicates to the car and helps the driver oversteer to safety.
It even tightens seatbelts to ensure the individuals inside the car are safe.
Some newer models even release a pink noise which helps protect the occupants inside by protecting their hearing when a crash occurs.
There is an assortment of other sensors and corrections that the car makes to keep those inside it safe.
Those sorts of features are expensive to design and make.
That adds to the cost of manufacturing the car.
Besides the cost, the allure of those safety features also adds to its price.
Some people are willing to pay more to ensure their family is safe.
Mercedes is expensive because of its extensive safety measure.
7. Limited Production
Another reason Mercedes is expensive is that it only produces so many cars in a year.
Mercedes isn’t a company that mass produces its cars.
Some manufacturers focus on selling a certain number of cars each year.
They rely on having a large number of sales to make a high profit.
Since they produce and sell a lot of cars in a given year, they’re able to keep their prices lower.
Mercedes follows an opposite strategy.
Instead, they only produce a smaller number of cars each year.
Not only does this mean they’re able to spend more time on each car, but it also means they’re not making as much money over time.
They have to increase the prices of their cars to get a sizable profit.
It plays into supply and demand.
There is a lot of demand for Mercedes cars.
Drivers love the luxury features that the car offers and they like its reliability and durability.
It’s also a status symbol of wealth.
While the demand is high, the supply of Mercedes cars is low.
Mercedes doesn’t produce its cars in mass.
Because there’s a smaller supply, but with high demand, the price for the cars is higher.
Mercedes is expensive because it only produces so many cars each year.
8. Intensive Quality Testing
One of the aspects that sets Mercedes apart from others is the intensive quality testing that it performs.
Because Mercedes sells luxury cars, it can’t afford to release a car that has defects.
It would impact their reputation as a high-quality manufacturer.
Intensive quality testing isn’t cheap.
It means hiring workers who specifically check each feature and part of the car.
While Mercedes might have automated processes to do parts of quality testing, they also have people check over each car.
It makes the manufacturing process a bit more expensive because of labor expenses.
It also makes it take a bit longer to hit the market.
That means it takes longer for Mercedes to earn a profit on the car.
If they discover problems, then the car needs to go back on the assembly line for corrections.
That also means the car isn’t earning Mercedes a profit until later.
Other car manufacturers may choose not to do intensive quality testing.
They’ll save money in the short term, but if the car gets recalled, then they’re going to face some high costs.
Mercedes doesn’t want to have to put out a recall on their cars.
It would harm their reputation for producing high-quality cars.
They avoid that by implementing intensive quality checks.
9. Maintenance Costs
It isn’t the price of Mercedes cars alone that makes them expensive.
After paying for your expensive car, you also need to maintain it.
The good news is that Mercedes makes durable cars that don’t break down quickly.
However, when you eventually face your first big repair, you can expect it to be pretty expensive.
That’s because Mercedes uses expensive parts.
Since they have high-quality parts, they need to replace those with high-quality parts.
It’s up to the owner to buy those expensive parts to replace the broken ones.
Mercedes also has patented parts.
You can only get certain parts from them.
As a result, you have to pay top-dollar to get them.
Their engines are also specialized.
It requires experienced mechanics who know how to fix Mercedes engines to fix them.
Since not everyone has experience working on Mercedes cars, those mechanics tend to get paid better.
You’ll end up paying higher repair bills.
Mercedes engines also use high-quality oil.
That tends to make even smaller maintenance jobs like oil changes more expensive.
High-quality oil costs more than standard oil.
While buying a Mercedes car is expensive, the cost of owning one also makes it expensive.
A final reason Mercedes is expensive is the technology that it uses.
No luxury car is complete without innovative technology.
Mercedes tries to get ahead of other luxury car manufacturers by using cutting-edge technology in their cars.
One of its primary focuses is the windshield.
Mercedes designs screens that integrate with the windshield.
The screen tells you information about the weather, road closures, your speed, and can even sync with your phone.
They also use technology for safety.
For example, Mercedes focuses on preventing accidents and collisions before they happen.
They use various types of technology to make the car, and driver, aware of a potential threat.
The technology either alerts the driver or corrects the driver to ensure the car’s safety.
Parking is also a chore.
Mercedes makes it easier by having the car do it for you.
That requires innovative technology.
The reason technology makes Mercedes expensive is that it’s expensive to make.
Engineers and designers get paid to come up with innovative ideas.
They need to buy certain parts to make the technology.
These expenses increase the cost of manufacturing the car.
To cover the expense, the company charges a higher price on the cars.
Mercedes is expensive because of its innovative technology.
Mercedes is an expensive luxury brand of car manufacturing.
The cost of making a Mercedes car is expensive due to the company’s focus on excellence and quality.