Recent market studies have shown that some luxury car buyers are switching to more cost effective models or brands. The picky shoppers though aren't willing to sacrifice options they've come to expect when buying a new car.
In 2009, some 14-percent of wealthier car buyers have moved from a "luxury" brand to Buick models or the high-end Hyundai Genesis. Some shoppers have simply moved to a smaller offering of the same brand they have driven for years, say from a Mercedes E-class down to a C-class. The seemingly low number of people who have switched out of a traditional luxury brand is up from 4-percent of buyers in 2006. Most of the causes of the migration are due to the economic downturn over the last year. With diminished home and portfolio values, public perception of wealth is at a low.
High-end shoppers expect heated leather seats, navigation, Bluetooth, and other niceties when shopping for a new vehicle. Many of these comforts previously only found in ultra-luxury offerings are becoming more mainstream by the day.
Buick, for one, is thrilled with the recent results. It has found its newly designed LaCrosse sedan is a hit among switching consumers. With entry pricing starting at $27,835 including $750 for destination, the LaCrosse is easily reachable for the wealthier crowd. Buick will soon be offering an even lower cost model in its sporty Regal, which should be priced around $26,000.
Hyundai has seen great success with its range-topping Genesis sedan. The luxurious sedan can cost up to $15,000 less than a similarly equipped model offered by a luxury car maker. Hyundai has seen its Genesis sales grow 52-percent over November of last year.
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