Luxury Car Dealers Deal With Tough Economy

Jan 23
09:18

2009

Joe Kent

Joe Kent

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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.

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The hottest,Luxury Car Dealers Deal With Tough Economy Articles 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.