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.
Volvo Dives into Plug-in Hybrid Technology
Volvo has been struggling amid slumping global sales, but that hasn’t stopped the automaker from diving into research and development. One such as product of its R&D efforts is a new plug-in hybrid that will be due by 2012. Volvo has committed itself to producing a high mileage diesel-electric plug-in hybrid, but it has yet to confirm its plans to sell the vehicle in the U.S.
Lexus ES Still Critical to Luxury Brand Lineup
As one Lexus’ most popular models, there will be plenty of drivers that will be happy to see a revamped Lexus ES 350 coming to showrooms later this month. While it may not be a full redesign, the updating certainly brings needed enhancements.
Euro Civic Type-R Teases U.S. Consumers
In the U.S., Honda is mostly known for producing somewhat conservative, economical cars. However, the image of Honda outside of the States is far more performance oriented. This is attributed to a range of models that can be had overseas, but remain unavailable here.
