It seems that perception is everything these days. We want to look good, we want to obtain what we think is the best for our hand-earned money, and we want people surrounding us to think that we’re doing very well, even though we might not be.
So far this year, most luxury brands have recorded sales increases compared to 2010; 19% for Audi, 11.5% for BMW, 13% for Land Rover, 6.5% for Mercedes-Benz, 44% for Porsche and 7.5% for Volvo.
Meanwhile, most mainstream brands’ sales are stable or in a downward spiral. Obviously, the earthquake in Japan slowed down the supply of vehicles for Honda/Acura and Toyota/Lexus.
But we’re witnessing a growing trend for smaller cars and trucks in the luxury brands’ portfolios. These vehicles are more affordable and, after their initial launch, backed by competitive lease and finance rates.
Honestly, between a 240-horsepower, $35,149 Ford Escape Limited V6 and a 241-hp, $38,500 BMW X1, which one would you choose? Sure, the X1 is a little pricier and not as spacious as the Escape, but you get no-charge scheduled maintenance for 4 years or 80,000 km, it’s much more fuel-efficient (hooray for turbo 4-cylinder engines) and you get to drive around in a vehicle with a prestige logo glued to it.
Would you buy a loaded, $38,340 Toyota Camry XLE V6, or a base $42,150 Lexus ES 350? I don’t even have to think about it.
Would you buy a full-tilt, $48,420 Honda Pilot Touring or a $55,900 base Porsche Cayenne? This might be stretching it a little, but I think you get the idea.
Bottom line: what are a few bucks more on the monthly payment for the privilege to park your derrière in a luxury car? Is a BMW X1 THAT luxurious? Not really, but it’s still a BMW.
A passing fad? Perhaps, but know that a plethora of other luxury-brand small cars and crossovers are on the way within the next few years. So, maybe not.
So far this year, most luxury brands have recorded sales increases compared to 2010; 19% for Audi, 11.5% for BMW, 13% for Land Rover, 6.5% for Mercedes-Benz, 44% for Porsche and 7.5% for Volvo.
Meanwhile, most mainstream brands’ sales are stable or in a downward spiral. Obviously, the earthquake in Japan slowed down the supply of vehicles for Honda/Acura and Toyota/Lexus.
But we’re witnessing a growing trend for smaller cars and trucks in the luxury brands’ portfolios. These vehicles are more affordable and, after their initial launch, backed by competitive lease and finance rates.
Honestly, between a 240-horsepower, $35,149 Ford Escape Limited V6 and a 241-hp, $38,500 BMW X1, which one would you choose? Sure, the X1 is a little pricier and not as spacious as the Escape, but you get no-charge scheduled maintenance for 4 years or 80,000 km, it’s much more fuel-efficient (hooray for turbo 4-cylinder engines) and you get to drive around in a vehicle with a prestige logo glued to it.
Would you buy a loaded, $38,340 Toyota Camry XLE V6, or a base $42,150 Lexus ES 350? I don’t even have to think about it.
Would you buy a full-tilt, $48,420 Honda Pilot Touring or a $55,900 base Porsche Cayenne? This might be stretching it a little, but I think you get the idea.
Bottom line: what are a few bucks more on the monthly payment for the privilege to park your derrière in a luxury car? Is a BMW X1 THAT luxurious? Not really, but it’s still a BMW.
A passing fad? Perhaps, but know that a plethora of other luxury-brand small cars and crossovers are on the way within the next few years. So, maybe not.