THE LUXURY CAR MARKET
May 6, 2007
Unless you happen to live in a place like Naples, Florida where the lifestyle of inhabitants affords them the opportunity to drive a luxury car, the dream of a Mercedes S class may remain an elusive one.
But luxury cars aren’t the standard for most people, and dealerships don’t turn over 50 high end cars a month everywhere. The luxury car market is very small. It isn’t surprising that the major brands in the market are setting their sights on the used car market to make the dream of owning an exclusive luxury car more accessible.
The supply of luxury cars is small, especially when you consider that the supply in different countries is controlled by different quotas.
Whilst the supply of new luxury cars is small, there is an ongoing supply of used cars in the luxury segment. Luxury car makers are therefore using pre-loved cars to attract first time buyers.
The select few who can afford the price tag tend to be whimsical, changing their cars frequently in their quest for the ‘something new’ that like a new suit is ‘them’.
The average car owner might own their car for 4-5 years, but these high end automobiles are disposable, and are offloaded by their owners within a couple of years.