Ever wondered why Range Rovers are so expensive? Like are they that much better than their competitors on the market? Well, you’re not alone in wondering about this and in this post, we are going to be delving deep into this issue to see just why the car is priced the way it is.
The Range Rover has a rich illustrious history that is associated with wealth and luxury. It is one of the British brands that has managed to make a mark all over the world. From royalty, sports personalities, celebrities, the rich and those who want to look rich, you will find this car everywhere.
In short, Range Rovers are so expensive because It combines luxury with capability. It offers the highest levels of comfort, best tech yet offering the off-road capability to rival that of a Jeep. It just navigates rough terrain more gracefully than most vehicles.
Range Rover Cost
Does the price justify the ability, luxury and image of the Range Rover? The base-level trim of the 2021 Range Rover in the US costs $93,350 and the top trim is just under $181,000. When stacked up against some of its current competitors in that price and luxury range, it sits somewhere in the middle price-wise.
However, when ranked, it sits at number 10. It has other vehicles such as the BMW X7, Mercedes G Class, Maybach, the Jeep Wagoneer all sitting ahead of it. This has not seemed to deter its fans or dampened its reputation.
Reasons Why Range Rovers are Expensive
Now, let’s take a look at the reasons why the Range is so expensive. Here are some of the reasons:
Premium Brand Tag
Since its launch in 1970, the Range Rover has glammed up over the years and morphed into the luxury vehicle it’s known to be today.
This wasn’t always the case though. When first launched it was nothing close to it. Perhaps it was genius marketing and luxury features that helped it reach its current status. Whatever the combination of factors has been, it is now recognised as premium brand.
Basic economics will tell you that perceived value plays a huge role in the price of a product. Another product may be more superior to it in every way but how the market views a product will determine just how much they are willing to fork out and pay. Range Rover enjoys that reputation at present and it keeps sales rising every year.
Range Rovers are truly a luxury vehicle brand. They offer the best of the best in comfort, finishings and technology. If you were to base your decision on value based on what we’ve just outlined, the Range Rover will do a great job in justifying its cost.
Unfortunately, though, there are current competitors who are offering equal or better quality than the Range Rover. As it stands, 9 other SUVs have made a better case than the Range Rover in the eyes of the market.
Cost of Production
The cost of producing a single Range Rover is a major contributor to the high price. Bigger automobile producers such as Toyota or Ford, produce parts that work across different models within the same company. Range Rover makes parts that are specific to the vehicle.
It means that they need to engineer parts specifically for each model release. As an example, getting the powertrain of a vehicle approved costs between $1 billion and $1.5 billion dollars. That, among other costs needs, to be recouped. This ties into the next point:
Low Number of Units Produced and Sold
Range Rover produces a low number of units each year in comparison to the bigger car producers. Perhaps this is a deliberate effort to maintain the limited, exclusive nature of the brand which allows for the perceived value to go up.
The production cost of these vehicles also goes up significantly due to the labour costs of producing a single-vehicle. It is estimated that the labour cost alone per vehicle stands at $4,000 for each Range Rover produced.
Bigger production factories that produce vehicles en masse have the ability to cut down on labour costs quite significantly. This, in turn, drives the per-vehicle labour cost down significantly.
Conclusion on why Range Rovers are Expensive
Hopefully, this article has helped shed some light on the reasons why Range Rovers are so expensive. It all boils down to image, comfort, reputation, technology, finishings as well as production cost.
On the other hand, if you are looking for value, is the Range Rover the best option. If you are looking for great off-road performance combined with luxury, this is a vehicle definitely worth considering.
You will have to be prepared for a somewhat inflated maintenance cost as they are not very reliable when compared to their competitors. Alternatively, if what you are looking for is reliability and value for money at the same price point, you may want to look at the BMW X7.
It is currently rated number one in the Luxury SUV rankings offering a good mix of luxury and reliability. If you really aren’t worried about the reputation or luxury tag, you may be better served by getting a Toyota SUV such as the Land Cruiser.