Luxury Car Sales Down by at Least One Third

With the recession in full effect, is comes as no surprise that month after month, car sales figures are lower and lower. For months now, not a single car manufacturer (barring Mini, thanks to a delivery hiccup affecting last year’s figures) has posted a year to year increase. However, while poor sales figures during a recession may come as no surprise, this recession differs from years previous in that it’s had a dramatic effect on luxury car sales as well.

In previous recessions, the wealthy have managed to insulate their funds and protect their money. However, with the current economic crisis leaving no financial asset untouched, the wealthy are turning in their luxury cars for some transport that’s a little more affordable. While enthusiasts recognized the signs with the advent of a new class of “entry level” luxury car (reference BMW’s 1-series, Mercedes’ B-Class and even Rolls Royces’ new 200EX), the first figures have rolled out demonstrating exactly how much they’ve lost, and the figure’s been placed at at least one full third of their previous volume. With critics pointing to the sectors that caused the economic collapse being those that typically are responsible for a disproportionate amount of luxury car purchases, the downturn has prompted even staid Lexus to develop their own Prius-like entry level model, the HS250h. The effect has even hit such financial havens as Dubai, where over 3,000 abandoned cars reside in the airport parking lot; the unfortunate victims of their previous owners’ dismal credit histories in a country that punishes late credit payments with prison time.

However, the most hard hit has been those manufacturers with nothing bolster their lineups, like Jaguar, Aston Martin, and Land Rover. All former Ford stablemates have maintained a luxury car image without the assistance of a more pedestrian partner since their separation from Ford, and all have subsequently seen their values suffer. Now hitting even the lesser known brands like Saab, where the far-reaching effects of this crisis will end, no one knows.