New, high-end luxury vehicles will be introduced this fall, even though sales of these ultra luxury cars are lagging.
High-end auto sales are down more than 50% this year, according to Autodata. Mid-level luxury auto sales have fallen 32% and entry level luxury sales have dropped 28%.
The Porsche Panamera, for example, debuts this fall and starts at $89,800, topping out at $132,600. How many people can really afford a six-figure car? Doesn’t it seem silly to promote such luxury at a time when Americans are unemployed and defaulting on their mortgages? Most of us can't even imagine taking out an auto loan for that much money. It would rival the price of most people's houses.
But the plans for all the new models being introduced this fall were created a few years ago, before the recession even hit the worldwide economy. For ultra luxury automakers like Bentley, Aston Martin, Lamborghini and Ferrari, sales in China, India, and other growing markets continue to increase, CNBC reports . The ultra luxury market is global, and the competition is fierce.
It’s hard to predict whether these new ultra luxury vehicles will sell well this fall. Frugal is the new black, so those who can afford these cars may not want others to see them behind the wheel.
Luxury automakers like Porsche hope that consumers who can afford a $90,000+ vehicle like the Panamera, will head to dealer showrooms this fall and buy.
Confused or unsure about some of the car loan terms used in the article? Click here for our Auto Loan Glossary.
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