Lexus, Mercedes Lead Sales Drop as Affluent in U.S. Feel Pinch of Slowdown

[Purveyor]

May 2 (Bloomberg) -- U.S. sales of luxury auto brands including Toyota Motor Corp.'s Lexus and Daimler AG's Mercedes- Benz fell in April, adding to evidence that the economic slowdown is causing even wealthy buyers to curb spending.

Sales by automakers' luxury divisions -- broadly defined by analysts as those selling autos for $40,000 aimed at the most- affluent consumers -- dropped 13 percent from a year earlier, according to Woodcliff Lake, New Jersey-based Autodata. That outpaced the 8.9 percent decline in sales of all vehicles.

The results reflect the run-up in gasoline prices, dropping real estate values and tighter credit that forecasters said may halt economic growth by mid-year. Sagging stock markets and shrinking bonuses may also be weighing on premium-brand buyers, spurring them to join lower-income shoppers in paring purchases.

``Normally, the case is the upper end is unaffected'' by the economy, Jeff Schuster, an automotive sales analyst with J.D. Power & Associates in Troy Michigan, said in an interview. ``You have this financial markets crisis that appears to have impacted the segment to a greater extent.''

Luxury-auto sales have fallen 16 percent this year, according to Autodata. The automakers reported U.S. sales yesterday.

---eoe---

http://www.bloomberg.com/apps/news?pid=20601109&sid=aXgObEkELJcw&refer=exclusive

[truth-warrior]

1. Yikes. The wheelse are really coming off of the economy.

Where is Bush? Where is Congress?
Ostritch head in sand technique of claiming everything is okay ain't gonna cut it.

[Clear Blue Sky]

2. Wonder how the Bentley and Maserati dealers are doing...

[TomInTib]

5. Great, here in Marin.

I see brand-new ones every day.

[Clear Blue Sky]

9. Some folks are immune to economic slowdowns...

[TomInTib]

3. Or maybe prospective "buyers" can't qualify for loans.

Our Gallery sells to the wealthy (the real ones), and our sales aren't slumping.

There were a lot of people getting financed on higher-end cars who had no business in owning thos autos.

[DJ13]

4. Nothing will spur the needed real reforms faster than the rich hurting

Its about time.

[Warpy]

6. That's the upper middle class feeling the squeeze

meaning people comfortably in the mid 6 figure annual income to low seven figure income ranges.

All the serious money I ever knew drove Toyotas and equivalents.

Only their sons in college had the overpriced wheels.

[cliffordu]

7. Bummer. Turn them into housing for the homeless.

[blue sky at night]

8. guess you would call that the.......

"trickle up" theory of economics. Thanks, now I won't sleep tonight worrying about all of the rich fucks that have to keep driving last years beater.

[Selatius]

10. They don't have my sympathy.

:nopity:

If you didn't quite make enough to buy that Mercedes or Lexus luxury vehicle, you're not in the same boat as the person who didn't quite make enough to afford a car at all.