New to the list, Acura's recently introduced TSX - a 200-hp near-luxury performance sedan based on the (smaller) European Accord - struck a chord with consumers by placing 5th in only its third month on the market. Covering all bases with the sporty RSX coupe and soon-to-be-revamped (in '04) 3.2 TL sedan and CL coupe, Acura became the only brand to nail down three positions on this month's list. The Volkswagen Passat, Mercedes C-Class and Ford Mustang all held on to their respective Top 10 rankings.
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| Only in its third month on the market, the near-luxury performance Acura TSX grabbed 5th spot. (Photo: Trevor Hofmann, Canadian Auto Press) |
Experts are scratching their heads as to why the luxury segment is sizzling while overall sales fell 6% in June from last year.
Certainly low finance and interest rates attract new customers when $45,000 A4's and Infiniti's can be leased in the $600 - $700 per month range - similar to what a fully equipped Ford Explorer or top-of-the-line Honda Accord might have cost a few years ago when rates were higher.
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| Even in the luxury segment buyers are looking for more utility, which is why luxury SUV's like the Lexus RX330 and Infiniti FX35/45 are enjoying such unprecedented growth. (Photo: Trevor Hofmann, Canadian Auto Press) |
But according to Richard Cooper, Executive Director of J.D. Power & Associates in Canada, it's all about demographics and shifting consumer tastes.
"People have to have the wherewithal to buy in this segment," Mr. Cooper noted, making the link between age and affluence. J.D. Power's research reveals the median age for buyers in the "entry luxury" class is 48 and 51 for luxury SUVs. Even in the luxury segment buyers are looking for more utility, which is why luxury SUV's like the Lexus RX330 and Infiniti FX35/45 are enjoying such unprecedented growth.
"Traditional lines (of what is considered to be a luxury vehicle) are going out the window," Cooper states. He feels manufacturers are doing a good job of meeting buyers' practical and emotional needs with exciting new product entries at both the lower and upper ends of the market. Mr. Cooper's outlook is "positive for the rest of the year."