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View Full Version : MSNBC Article: Luxury car market may never look the same


hayden
09-28-2009, 03:11 PM
http://www.msnbc.msn.com/id/32860931/ns/business-the_drivers_seat/

Though the big sedan won praise from reviewers, sales fell way short of the luxury automaker’s expectations...
“Given we have an all-new 7-Series, it’s clearly not doing as well as we wanted,” said Jim O’Donnell,” CEO (http://www.msnbc.msn.com/id/32860931/ns/business-the_drivers_seat/#) of BMW North America. “I think some people can still afford it, but when you’re a CEO of a company and you’re laying people off, do you want to be seen driving a new 7-Series?”


The new 2010 Ford Taurus, meanwhile, is offering the same cross-traffic monitoring system – which watches for passing traffic when you back out of a parking spot – that first debuted on the new 7-Series last autumn.

Huh? The 7 doesn't have that system...

DXK
09-28-2009, 04:23 PM
Same way companies don't let their people stay in FS or MO hotels.
I have noticed a definite pick up in spending here in Boston among the folks with money. Few months ago, they wouldn't go to restaurants, take vacations or let their wives go to a beauty spa; and nobody was talking about buying expensive cars. And while things are not back to what they were couple of years ago, there have been a definite improvement.
People are making money in the markets again; they are no longer getting laid off, although their bonuses are not as huge.
It, however, remains to be seen if the spending patterns have been permanently reset or it's just a temporary phenomenon.

BMR2009
09-28-2009, 05:46 PM
I thought about this, and I agree. I get the impression owning a luxury car is now something to be ashamed of, whereas it was previously somewhat of a celebration of hard work. I find some of my friends are buying trucks, Fords, or smaller cars. Strange days. And you know, I actually feel a little guilty buying my 7 in such a hard market. I know, I shouldn't, but that doesn't change anything.

I know ALL luxury cars are getting crushed, and I'm talking 7 series, LS460L, Audi A8's--the big ticket items.

LovinM6
09-28-2009, 07:25 PM
I thought about this, and I agree. I get the impression owning a luxury car is now something to be ashamed of, whereas it was previously somewhat of a celebration of hard work. I find some of my friends are buying trucks, Fords, or smaller cars. Strange days. And you know, I actually feel a little guilty buying my 7 in such a hard market. I know, I shouldn't, but that doesn't change anything.

I know ALL luxury cars are getting crushed, and I'm talking 7 series, LS460L, Audi A8's--the big ticket items.

I agree totally but I also think this is the first time that the economic issues have actually affected in a meaningful way the pockets of those people that are buying these cars.

I think it is a combination of both.

BMR2009
09-28-2009, 08:27 PM
Yeah, I agree. The pain was deep, sharp and everyone felt it. Everyone is reconsidering major purchases as the boom-boom market is no more. Credit has been stretched so far for so long that all it needed was a blip to bring it down, and it got a tornado.

It may take a decade for consumer spending to return to its growth rate prior to the recession. I don't think any of us will ever be the same, financially or emotionally (with regard to the market).

Leslierc
09-29-2009, 07:46 AM
I read this article as well and it's interesting that among luxury car makers, BMW isn't alone and isn't the one being hit the hardest by the down-turn. I was impressed by the fact that Mercedes Benz has already cut prices on it's new sedans. However, all this about the economy notwithstanding, I've learned (the hard way) that when one is shopping for vehicles in this market it's always smarter to lease or purchase pre-owned.

tdwayne69
09-30-2009, 03:19 PM
Your correct, its always wise to buy certified pre-owned. Honestly I'm not sure how accurate the article is concerning Mercedes Benz price cuts on the 2010 models, I have seen price cuts on the remaining 2008s and 2009s though.

hayden
09-30-2009, 03:46 PM
Honestly I'm not sure how accurate the article is concerning Mercedes Benz price cuts on the 2010 models, I have seen price cuts on the remaining 2008s and 2009s though.

MB did indeed cut the MSRP on the E class by a few thousand from MY2009 to MY2010. The S class MSRP, however, went up a few thousand from MY2009 to MY2010...

briansbimmer
10-01-2009, 05:20 AM
Well...I refuse to feel guilty for buying my 7. I work hard and I earned it. Now "deserving" it is another story...but I did earn it.