U.S. Luxury Car Sales Losing Traction

While luxury car sales are absolutely insane in China and Asia, they are at a sort of standstill in the States.  The reasons for the U.S. luxury car market sales lag are not all obvious, but sales could definitely use some traction.  Detroit luxury cars Vs. China helps to understand part of this trend, but does not explain it all.

Porsche luxury car

Porsche luxury car

In the first quarter of 2010, U.S. luxury car sales were up 8%, while the rest of the auto market experienced 26% growth.  A research firm, Polk Research, organized sales trends into 5 categories within the luxury car market:

•    Basic (entry-level cars like the Nissan Maxima and Infiniti G37)
•    Mid (Cadillac CTS)
•    Prestige (Lexus LS)
•    Prestige Sporty (Porsche range)
•    Roadster (Mazda MX-5)

Mercedes SLS AMG

Mercedes SLS AMG

Americans typically buy mostly the top two categories, with the Cadillac CTS being the best-selling.  Even basic luxury sales are dropping, and with the recession on an upswing, what is causing this trend?

Interestingly, the people at Polk Research believe it may be because the styling and features once offered only in luxury cars are now available in standard cars.  The math is simple:  standard cars are more affordable, standard cars now come with luxury looks and amenities. 

Ford Focus mobile connectivity

Ford Focus offers top grade mobile connectivity

Think about it, rain-sensing wipers were once only available on the 96 Cadillac Deville Concours…now they come standard on a Ford Focus.  Mobile connectivity in luxury cars is now being rivaled and even beaten by Ford these days, and Americans are more frugal than they previously had to be!

Audi R8 Spider

Audi R8 Spider

What do you think will happen if this trend continues?  Comment below!

 

 

 

 

 

Post by Imagine Lifestyles Luxury Rentals