Despite the financial doom and gloom that still exists in part of the world, it would seem that us, the consumer, is still willing to part with our hard earned dollars for either a new handbag, a piece of couture or a luxury vehicle.
Financialpost.com reports that when it comes to luxury cars, there hasn’t been much evidence of a recession.
“It’s still a very niche market,” Dave Sambrook told the Financial Post. “But a lot of our clientele are… pretty much recession-proof.”
Porsche released the new Cayenne last year and this year, a new Boxster and 911 which has gone down well with consumers with sales being up.
Luxury carmakers, like Porsche, really saw their sales start to pick in early 2011, when they began lowering their prices by as much as $US17,500 on certain models to bring their selling prices more in line with prices in the U.S. in an attempt to stem the flow of luxury vehicles being brought across the border, Sambrook said.
Dennis DesRosiers, president of DesRosiers Automotive Consultants, said there are several factors behind the growth in the luxury car market. But the primary driver is that Baby Boomers are becoming increasingly wealthy and are coming to the age where they embrace luxury brands. And to top it all off, he noted, the Boomers are expected to inherit over $US1-trillion this decade.
“They are generally in a good position from a home ownership and equity point of view, so that all plays into the market,” Mr. DesRosiers says.
European brands have also performed with all with their share in the luxury market growing by about 10 per cent in recent years to about 57 per cent. They are expected to continue to grow their share of the luxury segment to up to 68 per cent by 2020, Mr. DesRosiers said.
As a result of this rapid growth, it is expected that luxury vehicles could sell an additional 1.1 million cars in the coming decade.
By Cassandra Murnieks
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