Opinion: Why Rolls-Royce Cars Aren't Overpriced

It's all a matter of perspective. If your net worth is high enough it's not at all expensive, otherwise the price will seem insane.

Let's take the Rolls-Royce Phantom for example. Some facts about the Phantom:

1. The Rolls-Royce Phantom was introduced in 2003 and is the first incarnation of the new generation of Rolls-Royce cars under BMW. Customers can choose from, hold your breath, 44,000 colours.

2. The birth of every Phantom takes place in Germany, where close to 200 aluminium sections and 300 alloy parts are welded by hand. It takes at least two months to build a Phantom.

Rolls-Royce Phantom Bonnet and front grill

3. The Phantom has a V-12 engine what can push the car from 0 to 100 km/h in just 5.9 seconds.

4. Every Phantom comes with Teflon-coated umbrellas that are built into the doors and pop out with the touch of a button.

5. It takes around 75 square metres for the upholstery of each Phantom, and the job takes up to 17 days.

That's why they are "expensive".

But these cars are one of a kind, with obviously the brand value and luxury second to none.

They don't take advantage of something called the economies of scale. This means that while Toyota and Ford make millions of cars that are exactly the same, Rolls Royce makes a small number of cars that can be different for every person.

They're also very careful when they make the cars, and they include things like real wood and even little perks like refrigerators if you want one. All of this makes the inputs (things used to make the car) more expensive, which makes the car more expensive.

Also, the people who buy Rolls Royce cars pride themselves on having something special, and the high price is a part of that. If the car was cheaper, more people would be able to afford one, but they wouldn't be so special and those people might not want to buy one anymore.

Each Rolls Royce is built most entirely by hand by skilled craftsmen. The experience and tenure of a man or woman who can perfectly hand-stitch fine leather is far more expensive than the labour done by a robot speed stitching thousands of normal car seats together each day.

If you are a car enthusiast and you liked this article check out our other articles on cars like the advent of Self-driving cars, coolest car features, car maintenance tips, tips to improve clutch life, information on car warning lights, importance of regular car service and more!

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