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Thursday, 27 August 2020 22:33

Luxury Vehicle Sales Expected to Rebound from Depression

Written by Kimberly Hurley, CBT News

Index

Japanese and German automakers have lagged behind the most, including Mercedes Benz and BMW. This is expected to get a lot better now that factories are back up and running, albeit with a lot more social distancing and sanitary measures implemented since they reopened.

 

It’s been quite understandable consumers have been putting off car buying due to other needs during the pandemic. Consumers are facing an unfortunately high unemployment rate, as well as increased financial anxiety and budgetary restrictions, which is impacting car sales all across the board. However, while concerns will remain for quite some time, it doesn’t all look terrible. 

 

Congress is working out another stimulus package, and Americans may see some additional cash in their accounts soon that undoubtedly could push some consumers who are on the luxury/non-luxury fence to splurge for a luxury vehicle.

 

The job market is expected to bounce back as the pandemic tapers off, meaning people will get back to having a regular, reliable paycheck and extra cash in their pockets. Consumers may then start reconsidering more expensive vehicles as opposed to basic, cost-effective, non-luxury ones.

 

Cox Automotive made sure to include that BMW continues to take the gold medal as the top luxury brand, continuing the trend since Q3 2018, with Audi and Lexus closely behind.

 

Luxury SUVs are still at the forefront of shoppers’ minds, with 62% of people looking for an SUV as opposed to a sedan. As the market recovers and consumers have more money for spending, the hope is that demand will increase for luxury vehicles of all makes and models, which will make sales bounce back to pre-COVID levels and beyond.

 

We thank CBT News for reprint permission.


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