Is the Decline of the Real-Estate Industry Affecting the Sale of Luxury Cars?
Across the sea to the land of Oceania, German car dealers are facing a major problem. As a matter of fact, Audi, for example, recorded a whopping 25.8 percent decline in its sale for cars in the month of August, while BMW experienced a dip of 12.2 percent, and last but not least, Mercedes-Benz experienced a dip of 11.5 percent.
Taking a Closer Look at the Statistics
When analyzing the figures from the previous year and comparing them with these ones, Audi has been hit the hardest, further recording an 8.5 percent dip compared to the same period in 2017.
Additionally, BMW has been down by 3.8 percent while Mercedes-Benz has been down by 7.5 percent.
Comparing their sales to that of Volkswagen, Kia, Honda, and Toyota within the same time frame, it is crystal clear that there is a trend of declination across the board, with the least affected being Hyundai, which recorded a 1% drop, making it one of the healthiest car manufacturing brands in the mainstream market.
From the Words of the Managing Director
In an interview with Car Advice, managing director of Audi Australia, Paul Sansom gave his sentiments to this worrying trend, stating that the sudden decline in the demand for luxury cars could be a by-product of the housing market crisis, as well as other uncertainties in the economy.
He continued on to say how tough the current market is, noting that there has been a contraction in the luxury car market in the last couple of months. Thus, from an economic perspective, the fact that house prices are softening is a major factor for all to see.
He believes that the current situation can be traced back to the past 2 decades when house prices began steadily rising. This, in turn, caused the premium market to follow suit, leading to the financial crisis that is in place.
According to Sansom, another major factor that could be causing the decline in luxury car purchases could be government instability, and runaway interest rates that have no doubt dented consumer confidence.
Audi Confident of Turning Things Around
That being said, Audi still believes that they can turn it around, and hopefully bounce back as the market rebounds.
Sansom believes that Audi is well-positioned for such a rebound. He believes that their business is still in its prime health, and the release of new products to the market anytime soon will definitely attribute to the impending rebound.
The new products he speaks about are of the SUV sector, and they hope to ameliorate consumer value albeit at an affordable price.
Additionally, the fact that the company has an astounding dealership network in Australia is further evidence, and they intend to capitalize on that.
However, there is still uncertainty as to the duration in which the current degradation of the economy will continue to affect both the car market and the house pricing.
Nonetheless, analysts put it from between six to 18months; but these estimates vary from one analyst to another.
Top-End Luxury Car Brands Seem Invincible
Interestingly, while a majority of luxury car brands have recorded declines in their sales this year, the likes of Lamborghini and Ferrari seem untouchable. They recorded massive increases of 14.1 percent and 22.1 percent respectively.
As a matter of fact, in the month of August, Ferrari recorded an impressive 46.2 percent increase in its sales, same as the previous year. This strongly shows that top-end brands are not been affected by the current economic upheavals. It seems that the crème de la crème are still splurging their cash for the most expensive cars.
That being said, an economist will probably be confident that the market will be able to rebound despite its current worrying trend.
Conclusively, these three brands will have to come up with decisive ways to counter their losses. The fact that Audi has taken a closer step to rebounding by looking to release a set of new products soon is one sure way of getting traction. People will have to just wait and see to know what the likes of Mercedes have up their sleeve.
More inLuxury Cars
The Real Story Behind Steven Spielberg’s INSANE $200 Million Yacht
If you had an annual salary of $150 million and a net worth of $3.7 billion, what would you do with...June 18, 2019
Here’s an Exclusive Look at the Newest Addition in Kylie Jenner’s Luxury Car Collection!
After Kylie Jenner was recently named as the youngest self-made billionaire in the world, there’s no hiding the fact that wealthy 21-year-old is...June 18, 2019
Everyone is Talking About Kylie Jenner’s Customized Rolls-Royce Wraith with Sparkly Ceilings
Kylie Jenner is a young woman with a penchant for some of the most expensive rides on earth. The net worth...June 18, 2019
This Is How a Car Donation Can Change Lives
Every donation helps, but some stories that include donations leave you with a warm feeling inside that you rarely experience. These...June 18, 2019
British Motor Museum Receives a RARE Car in Donation
The iconic Ford Anglia Super may not look like much, but it was the British car that put the country on...June 18, 2019
You Can Save Hundreds of Dollars Every Year in Insurance Payments with This Simple Trick
If you’re looking to purchase a new car, one of the things that you’ll have to address is the amount of...June 18, 2019
Do Luxury Cars Cost More to Insure?
Buying a luxury car is certainly expensive. You’ll find that some of them are manufactured with some of the most high-end...June 18, 2019
Busting the Biggest Myths About Donating a Car
Many people have a vehicle that has gone out of style and isn’t exactly needed anymore. Others have one that requires...June 18, 2019
Bugatti Has BANNED These Celebrities from Owning a Luxury Car for a Very Shocking Reason
One of the ways to tell how rich your favorite celebrity is by seeing what car they drive. Most of the...June 17, 2019