Luxury saloons go into a decline
Sales of luxury saloons have declined by more than a quarter in the past five years. The four bestselling models — the BMW 7-series, Mercedes S-class, Audi A8 and Jaguar XJ (below) — have seen UK sales plummet by 26%, according to automotive market analysts at EurotaxGlass’s.
Once regarded as a must-have for every millionaire lifestyle, top-end saloons now make up just 2.5% of the prestige car market. Growing affluence means many more can afford luxury cars but the new rich appear to be spending their money on smaller, more economical saloons, such as the Audi A6 and BMW 5-series, luxury 4x4s and sporty roadsters.
Prestige car makers like BMW, Lexus, Mercedes, Audi and Jaguar have kept ahead of the change in tastes and have seen overall sales rise by more than 50% in the past five years.
Depreciation of top models is also faster than ever before. Luxury cars now lose more than 40% of their original value in just one year, leading some commentators to predict a “terminal decline”.
“The luxury saloon is not considered as desirable as it once was,” said Richard Crosthwaite, prestige car editor at EurotaxGlass’s, which publishes the Glass’s guide to car values. “Many traditional luxury car buyers are migrating to prestige-brand SUVs and niche coupé models. Luxury saloons have higher running costs and buyers are becoming aware of the high levels of depreciation.”
Even limousine businesses, once the heartland of the luxury saloon, are opting for cheaper alternatives. “Cars such as the Mercedes E-class now offer the space they need but without the initial outlay,” said Crosthwaite.
Source: Times Online