That high-tech car of your dreams could become a nightmare if it needs repairs out of warranty. The cutting-edge technology can also increase the cost of your car insurance. It’s good to know what you’re getting into before you make your purchase.

The Highway Loss Data Institute cites the cost of replacing some of the new-fangled parts on some luxury vehicles:

2004 Cadillac Escalade

• Xenon headlight--$765
• Ultrasonic rear-parking assist--$934
• Heated side mirror with turn indicator--$997

2005 Lexus RX330

• Adaptive cruise control system--$1,318
• Back-up camera--$4,217
• Adaptive headlight with washer--$1,627 per light

2005 Mercedes C Class

• Parking sensor--$345
• Xenon headlight with washer--$1,659
• Adaptive cruise control system--$3,742

One owner of a Toyota Prius hybrid just out of warranty, had to replace the car’s transaxle, a key part of the hybrid’s continuously variable transmission. The dealer initially quoted $3,000 for the labor and $5,000 for the part. That amounted to 40% of the original cost of the vehicle. After complaining, the dealer waived the part cost. But the $3,000 labor charge still made a dent in the owner’s budget. Hybrid technology with its unique transmission, batteries and braking systems are also costly to replace. Mechanics who can work on the systems are in limited supply.

Some of the other items to be aware of include the cost of replacing high-tech key fobs for keyless entry systems—one Volvo model’s fob costs $350 to replace. The keyless ignition system found on the luxury vehicles use fobs that may cost about $1,000 to replace.

However, these costs needn’t scare you away from buying that high-tech car you really want. The benefits of comfort, safety, and convenience may far outweigh the potential disadvantages. There are some tips that can help you be a knowledgeable buyer:

Research reviews, recalls and technical service bulletins—You can steer clear of the most problem-prone vehicles by doing some upfront searching. Technical service bulletins are an indicator of potential problems and recalls. Experts say that problems usually surface in the first 36,000 miles. Car reviews of older models will usually indicate potential problems for your new vehicle.

Reconsider the extended warranty—although extended warranties have a bad reputation on many consumer products, they can be a good value for cars loaded with high technology gadgets. If you plan to own the car longer than the original warranty period or if you’re buying it used, take a look at the extended warranty offered by the manufacturer. Avoid third-party warranties which can “disappear” according to one expert. Typically, you can purchase the extended warranty at any point before the original warranty expires.

Reconstitute your lemon into lemonade—if your new car is constantly in the shop for repairs, investigate the lemon laws in your state. You can find the lemon laws for your state at this site: http://www.carlemon.com.  The laws usually cover cars under 24 months old and they outline the legal remedies for vehicles with recurring problems. Advise your dealership that you’re thinking about invoking the lemon law, armed with your research. The dealer may be very cooperative in order to avoid the black mark for a lemon law problem. You may be able to terminate your lease or receive a replacement vehicle.

Remember your budget—The high technology cars cost more to maintain and repair. Insurance costs may also be affected by the likelihood of theft on certain items such as xenon headlights and airbags. You should factor the added cost into your auto cost budget and make sure it’s in line with your means. In addition, with the rate of new technology development and adoption increasing, it won’t be long before those new goodies are more widely available on moderately priced cars. Common items such as multiple airbags, heated seats, cruise control, and CD players were specialty extras only a decade ago.

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