FWD vs RWD - Price

Price

Last blogger talked about the different structure between FWD and RWD, so in this blogger will talk about the first part- price. When costumers have greater choices, the price is more important. 

For most people have the misunderstanding, the RWD will more expensive than FWD, because of some luxurious brand adopt RWD such as BMW and Mercedes. First of all, talking about what is forming a vehicle’s price. The price is not only determined by the hardware cost, but also include the research, management, sell, advertisement and labor cost. At the same, different brands have different strategic positioning, which means some companies sell the car as the same price as the cost and the others will own high benefits. So, the price does not have any relationship with the wheel drive method. 

For example, here are two similar level vehicle- LEXUS ES and BENZ C class. They both belong to medium size business cars. But the C class does not too much more expensive than ES.

The luxury need to spend more money on advertisements and sealing, which cost will add to customers. On the other hand, the luxury vehicle will be equipped more expensive comfort functions.