When It Got Tough In 2009, Why Did New Car Buyers Continue To Flock To These Three Brands?

While the overall market for model-year 2005-2008 used vehicles is down 8.5 percent this year, Subaru has shown the best performance in 2009, increasing 1.3 percent. In addition, Audi is down only 1.9 percent, and Mercedes-Benz is down just 3.3 percent this year, both significantly better than the market average.

When looking at data from recent weeks, Q4 2009 vehicle depreciation has outpaced drops in earlier quarters. Over the last four weeks the market has continued to slide, depreciating 5.6 percent overall. However, Subaru has come out on top once again in the past month, depreciating a scant 0.4 percent while the rest of the market has taken significantly larger hits. In addition, Mercedes-Benz and Audi continue to outperform the market, only dropping 2.7 percent and 3.6 percent in the past month, respectively.

In addition, preliminary Kelley Blue Book Market Intelligence data from the Q4 2009 Brand Watch study shows that in-market new-car shoppers' consideration for Subaru in the Non-Luxury SUV/CUV segment is currently at its highest; since Q1 2009, consideration has increased five points (from 17 to 22 percent). Audi consideration in the Luxury SUV/CUV segment also is at its highest; since Q1 2009, it has increased four points (from 14 to 18 percent). Further, Mercedes-Benz consideration in the Sports Car segment has increased two points since Q1 2009 (from 15 to 17 percent).

"The fact that Audi, Mercedes and Subaru are 'bucking the trend' in a down economy is further proof that exciting and innovative vehicles are paramount to success," said James Bell, executive market analyst for Kelley Blue Book's kbb.com. "Recent redesigns and new-car introductions by all three of these brands have ignited consumer interest, and the high demand for these cars also translates to better retained value on the used-car side of the business."

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t_bone - 1/4/2010 12:46:47 PM

+3 Boost

To a large degree I don't get these "tough economy" articles. Many people are living the same lives they ever have, in fact they are taking advantage of the cheaper goods/services right now. But to unemployed people, they are living in Sub-Saharan Africa, right there in their hometowns.

In either case, brand choice is hardly a factor...you are either getting great deals on the car you want, or you are looking at what piece of furniture will give you the most heat tonight.

enthusiastx11 - 1/4/2010 1:01:59 PM

-6 Boost

what don't you get? 10% unemployment (hugely understated), massive investment losses over the past couple of years, lacking consumer confidence, huge uncertainty for people who have jobs, etc.

the result: very few are living the same lives they did before. people with money are plenty nervous and, as a result, they've cut spending.

t_bone - 1/4/2010 1:34:06 PM

+6 Boost

I think you should re-read my post...I personally am a casualty of this economy but I see MANY who are untouched and it wouldn't affect their brand choice.

KZ258 - 1/5/2010 2:28:09 AM

+1 Boost

yeah enthusiastx11.

people are still spending money at the malls, movies, diners, fast food, etc...alot of stupid crap. drive by your local movie theater or iHop and it should be packed...as always. many are barely effected by it.

david999 - 1/4/2010 1:32:27 PM

-3 Boost

Subaru gives you a good car for the money, but the only reason Merc and Audi are mentioned in the article is because they were discounting their cars big time to push sales. Nothing wrong with that, but claiming they maintained sales because they are quality vehicles is not exactly true.

enthusiastx11 - 1/4/2010 1:39:05 PM

-4 Boost

you're just an ass.

enthusiastx11 - 1/4/2010 1:40:08 PM

-1 Boost

and by the way, mercedes would need to offer 40% discounts on the S-class just to get down to the LIST price of your beloved LS (which they are discounting plenty).

david999 - 1/4/2010 1:52:27 PM

-1 Boost

We are talking about their bread and butter cars like the c-class and Audi A4. You make a statement like
"people with money are plenty nervous and, as a result, they've cut spending", yet we are supposed to believe that they would still buy Mercs and Audi over Lexus, BMW. Infiniti who all are higher quality vehicles?
Who's the ass?

Willis - 1/4/2010 2:19:49 PM

0 Boost

Who's the ass? David999.

Always talking about "quality" as if this is some trait that is only available from Toyota. Give me a break. It's amusing reading your delusional posts.

david999 - 1/5/2010 12:48:21 PM

0 Boost

More anti-Japanese bias from the kid Willis.
Who mentioned Toyota?

Htay7500 - 1/4/2010 3:59:34 PM

+3 Boost

For Subaru, you are very wrong, as is MB and Audi. The reason why subaru did well in these times is because they aren't as mainstream as Honda, toyota and nissan. Their forester was the reason why its sales improved. And the legacy and outback which just came out, improved sales as well.

Joe_Limon - 1/5/2010 12:54:54 AM

+2 Boost

Hyundai/Chrysler/Kia are putting up far far bigger incentives. It's kind of working for the Korean cars since they make half decent vehicles, and it isn't working for Chrysler.

Htay7500 - 1/6/2010 5:21:25 PM

+1 Boost

Ok fine, heres your source, fresh out of the press:
Outback sales are up 106%
http://www.freep.com/article/20100105/BUSINESS01/100105041/1014/Outback-sales-are-way-up

In Dismal Year, Subaru Sets New Sales Records
http://www.autoobserver.com/2010/01/in-dismal-year-subaru-sets-new-sales-records.html

Subaru's 2009 Sales Rose in Auto Industry Rarity
http://moneynews.com/Markets/US-Auto-Sales/2010/01/05/id/345434

ThierryHenry14 - 1/4/2010 7:20:12 PM

0 Boost

Maybe because these cars are very good all around cars with purpose in winter conditions (for those who lives with nasty winters like myself), in summer, great brand image, etc.

Its just these companies have found ways to position themselves as value.

nguyenvuminh - 1/4/2010 9:49:32 PM

0 Boost

This is just speculation and "personal logic" on my part but I suspect these 3 companies' customer-loyalty and valuation are high is because their respective product track most closely to their customer's key value/taste. Subaru buyers are a unique bunch and not known for their wealth and Subaru cars are similar in their legacy of reasonably priced AWD cars (my family owned 3). Audi buyers heavily lean towards elegant style (not flashy) with good performance and their cars don't pretend to be S-class or performance mad BMWs. MB buyers on the whole are people who want proven well rounded excellence and their cars (from C to S) are safe, technology-laden, comfortable yet good handling bank vaults. Lexus and BMW are also known for their expertise (luxury and performance respectively) but their car line up also include alot of "non-traditional" characteristics and their customer base include alot of outliers ; e.g. Lexus' rice rocket IS series amongst the luxurious LS image and BMW's Mini and 7-series (high performance for successful, i.e. old, people that for the most part place higher priority on comfort and prestige).

And now that I have read back what I just typed, never mind :-)

thstone - 1/5/2010 7:39:39 PM

+1 Boost

Subaru took Toyota, Nissan, and Honda sales by offering more value.

Audi took BMW and Lexus sales by offering more value than BMW and more cachet and performance than Lexus.

MB kept its sales because its the top of the line and there are still enough people who want and can afford it.

I would have expected Hyundai to also make the list because of their strong value proposition in a down economy.