‘Every new car is a luxury purchase’
Part of the problem is that more Americans want expensive SUVs and pickups with all the options, he said, which can cost up to 40% more than the base price.
Over the past decade, luxury shoppers have proven time and time again that they are willing to spend more on high-end cars and the financing to go with them.
Citing the overwhelming excitement over the Honda Odyssey’s built-in vacuum option when it was first introduced in 2014, Drury said even the smallest upgrades have been met with increased demand.
Different packages, or trim levels, offer a variety of features to appeal to different buyers, such as better safety features, larger engines or higher-end finishes such as leather seats and better stereos.
Now everyone wants high-tech touch screens, ambient lighting, 360-degree cameras and heated and cooled seats, Drury said, which costs even more. “At least people want something basic.”
with him attractive luxury segment In high demand, carmakers are upgrading their lineups and cutting back on less expensive cars.
“The base model, while enticing in theory, rarely hits the road,” Drury said. “Every new car is a luxury purchase at this point.”
“Who do you blame: the consumer who is buying these options, the dealers who are ordering these cars or the automakers building the lesser base models?” They said.
As more people are excluded from the new car market, automakers may begin testing cheaper alternatives, he said, although if there is a lot of consumer interest, it could raise prices for those models as well.
For now, the best way to obtain a base model vehicle is to order it directly through a dealer, Drury advised.
“Could be a good alternative at about half the cost,” he said.