Luxury Car Sales Soaring
While the news seems to be overrun with stories of hardship and the cost of living crisis there seems to be something else happening.
In the UK at least, there seems to be a shift going on in the car market. In the last 10 years there has been a growth in drivers shifting towards brands normally seen as being in the luxury sector. Car makers such as Audi, BMW and Mercedes-Benz have seen a much bigger chunk of the overall sales while traditionally more popular and affordable names like Ford and Vauxhall have seen sales slide.
Wages in the UK have remained at a similar rate for the last few years, so how are people able to make this shift upwards in the market? One thing that has evolved more than anything else in the automotive retail sector in the past few years is how you buy your car. Cheap finance is readily available and PCP/leasing has given the general public much more choice in how they buy. This new availability of more prestigious brands has driven and facilitated a much more aspirational lifestyle. PCP lets drivers drive a brand new or nearly new upmarket car for a few years without even owning it. After this term is up they then have the option of paying the car off or trading it in for a newer model and continuing the PCP cycle. UK car buyers are now in debt to the tune of almost £18bn!
The UK luxury car space has seen remarkable growth over the past 15 years. Marques like Porsche that are usually synonymous with high end sports car drivers have seen their market shares increase massively. Land Rover and Toyota’s luxury arm Lexus have seen their market shares jump by almost 80%.