Car Dealer Daily

The economy may be beginning to bounce back, but the past year has changed the perspective of even the wealthiest of consumers. As they make their way back to car dealerships, these consumers are not going for their typical BMWs and Mercedes vehicles. Instead, they’re trading in their high-end models for Buicks and Hyundais.

These brands may be less expensive than their German counterparts, but what many buyers are discovering is that these cars aren’t necessarily “cheaper” when it comes to the comfort and amenities that they provide. Continue reading ‘Luxury Doesn’t Have to Come at a Price’

While the auto industry is still feeling the effects of rising living costs, not to mention a poor housing market and a shaky economy, more affluent car buyers are actually moving away from luxury brands to instead purchase more reasonably priced vehicles.

Over all, US auto sales have decreased recently, with many factors contributing to the slump. While the price of gasoline recently has also played a role in consumer spending habits, many potential luxury auto buyers are thinking twice about that pricey, German SUV that recommends premium fuel only or that big V8 Lexus sedan.

Most automakers that have luxury brands, such as Honda’s Acura brand or Toyota’s Lexus brand have seen dramatic drops in the percentage of sales when compared with their more mainstream auto brands. That being said, some luxury dealers have remained optimistic, such as Smail Acura that has seen growing demand for Pittsburgh used Acuras as more buyers are looking for low-cost, and high-value models.

Auto industry analysts say many buyers are considering a new Ford before a new Mercedes. With the economy still struggling and gas prices still rising, even affluent consumers are becoming more conservative when it comes to their new car purchases. Since the US market accounts for the majority of sales for many luxury brands according to Mercedes Benz Washington DC.

In 2008r, the price of gas more than 31 percent from the previous year, causing many to consumers to change their buying habits at Mercedes Benz Pittsburgh and other locations, opting for smaller engines and smaller vehicles. Many parts of the country faced $5 gas prices, making consumers well aware of how costly a gas-guzzling vehicle can be should prices spike again this summer. As the economy continues to suffer, all automakers are going to be affected, but those brands that have fuel efficient and economic vehicles are expected to be affected slightly less than luxury brands that have high sticker prices and low fuel economy ratings. But, Carlsbad BMW stresses that luxury brands aren’t all about low MPG and emissions. Increasingly luxury brands are also offering alternatives for the eco-conscoius, helping keep luxury cars and crossovers ahead of the curve. Continue reading ‘Affluent Buyers Abandoning Luxury Brands’

With the recession dramatically influencing auto sales, it isn’t only the Detroit Big Three, or the Japanese Big Three, hurting for more sales. Potential buyers of premium auto brands are also thinking twice about buying new cars.

The hottest, priciest, and most luxurious cars have also faced the wrath of a shaky economy. Even the most prized brands have faced falling sales. But it isn’t just autos either. Consumers are simply staying away from premium products across the board.

At the first sign of slipping car sales, many assumed that the luxury car market would be unharmed. It was expected that wealthy buyers would not be subject to the adverse conditions that have kept consumers from visiting Chevrolet, Ford, or Toyota dealerships. Unfortunately, the assumption was not accurate, as luxury car sales, according to Autodata, have fallen about 19 percent this year. From Lexus, to BMW, to Mercedes-Benz, steep losses have been felt,  says one Acura dealer Pennsylvania, as fewer buyers can afford the bells and whistles that come with these luxury brands. Even the top echelon of premium brands, such as Bentley and Aston Martin, have also faced global sales slump, which has also fueled substantial layoffs.

While widespread layoffs are occurring, and wealthy types being forced to forgo lucrative bonuses at the very least, it’s no wonder why premium car sales have been hit hard. But while some dealerships may be struggling to get by, others such as Denver Land Rover dealers have the luxury of having a long-established business and a well-known name to get by while sales nationwide suffer.

Although premium new car sales have been shaky at best, there is a silver lining for some. Premium used car sales among New Hampshire Volvo dealers and Philadelphia used car dealers have actually increased. Mercedes Benz Pittsburgh says luxury buyers don’t want to give up the premium brand, but they do want to spend the normal gobs of cash to get it.

The automotive market in general is in a dismal state, and there’s more to it than just building the wrong cars. Many claim that the biggest problem with the Big Three is that they have produced the wrong types of cars. Yet at Los Angeles harbor, loads premium cars remain unsold and awaiting shipment. Luckily for premium automakers, they have the cash to get by. Unfortunately, like the Big Three, many premium dealers may not have that luxury. Continue reading ‘Luxury Dealerships Face Sales Slump’