Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Smart Shopper Talk to the Press
1230 messages, Last post on Dec 01, 2009 at 8:19 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
|
Hi friends, By now, many of you have already spoken with reporters at The Wall Street Journal, New York Times, USA Today, Chicago Tribune and ABC-TV regarding your automotive experiences. Thanks again for taking the time to share your stories. All the other requests are still live, and today I'm adding a new one to the mix. Is anyone out nearing the end of your lease, or maybe even not that close to the end, but are already getting offers to buy the vehicle from the lessor? It doesn't matter if you plan to take the offer or not. Does this describe your situation? If so, please post your story here, or respond to me directly at jfallon  Edmunds.com. As always, your identity will be protected at your request. Thanks much! |
|
|
Hi, Did you opt for All-Wheel-Drive and/or side air bags in your recent vehicle purchase? Was safety a big deal in your recent shopping experience? Are you willing to talk with a reporter about it? Your identity will be protected at your request. Thanks as always for helping out! Best, Jeannine Fallon PR Director Edmunds.com |
|
|
Ya, safety was the key issue for me in my very recent car purchase. I'm a newly single mom of four teenagers. Having two new drivers in my household made me very nervous. I wanted to be sure that they had as much protection as possible. They're very good drivers but it's always the other person that I worry about. If you need more info, contact me at lynn3989email.com
|
|
|
Thanks, jackiele. The reporter will be contacting you directly. Her story will appear in The New York Times on Sunday, May 27 - I'll make sure you get a copy as soon as it appears. Are there any other takers out there? |
|
|
Thanks for taking the time to Talk to the Press. Three of you were quoted in the below article. Please keep those anecdotes coming! Not buying it Economic news slows luxury vehicle sales, for now By Rick Popely Tribune Staff Reporter May 14, 2001 Sales of luxury models are dropping faster this year than new vehicles as a whole, and industry analysts lay most of the blame on the sinking stock market and shaky economy. With their stock portfolios suffering almost daily declines, high rollers backed away from expensive cars and sport-utility vehicles in the first four months of 2001. After years of steady sales growth, the luxury market has declined 11 percent this year versus 6.8 percent for all cars and light trucks. "Luxury sales in the late 1990s were largely driven by stock-market gains," said Susan Jacobs, president of industry consultant Jacobs and Associates. "These are fairly discretionary purchases, and people tend to splurge in prosperous times. We're now entering a time when we don't have as many splurge buyers. "We're seeing the effects of the loss of the windfall gains in the stock market. The changes in the equity markets have their greatest effects in the luxury segment of the auto industry." Robert A. Clark, an engineer for a technology startup in Silicon Valley, was ready to splurge last year on a $117,000 Porsche 911 Turbo as he watched his stock options rise to $250 per share from $50. By the end of the year, the stock had fallen to $40, and Clark bought a BMW 330i, a sport sedan that tops out at around $40,000. "The play money went away, and so did the play car," Clark recalls. "It was entirely a compromise choice, with four doors and a child seat in the back." Most of the big losers among luxury vehicles are $40,000-plus models, including the BMW 5- and 7-Series, Mercedes-Benz M-Class, Audi A6 and Acura 3.5 RL, all of which have suffered double-digit declines this year. Some luxury brands have been hit hard as well. Jaguar sales are down 13 percent, Land Rover is off 18 percent and Lincoln 20 percent. Cadillac is taking the biggest hit, 25 percent. The $54,000 Lexus LS430, which was redesigned for the first time in six years and received a larger engine, fresh styling and several new features, is a notable exception. LS430 sales have more than doubled this year. While most models more than $40,000 suffer big declines, some less-expensive merchandise is attracting more buyers. Sales of the redesigned Mercedes C-Class have risen 60 percent, and the BMW 3-Series, which has new engines this year, has gained 29 percent. The C-Class starts at around $30,000 and the 3-Series near $28,000. Paul Taylor, economist for the National Automobile Dealers Association, says stock-market losses are the biggest cause of the drop in luxury sales. "The people who buy true luxury cars are the ones who depend on their portfolio for a lot of their wealth. Their compensation often is tied to the stock market in a number of ways," Taylor said. "It hits them specifically." While luxury vehicles suffer big declines, Taylor says modestly priced small cars have fallen 3 percent because far fewer buyers in that segment are affected by Wall Street's woes. Sagging consumer confidence and hand-wringing over the economy also are prompting luxury buyers to rethink their plans. Six months ago, Ted Gizewski, a staff attorney for a San Francisco-area software company, had his sights set on a new $55,000 BMW 540i. Then the tidal wave of dot-com closings and layoffs swept Silicon Valley. Gizewski still has his sights set on a 540i, but now he is looking at a 1997 model with about 45,000 miles on the odometer, a car that will cost less than $35,000. "It's just the potential for layoffs and the lack of stability in employment," he said of his newfound frugality. "A used model is a much better value." John DeVries ordered a $39,000 BMW 525i in December, but by the time it arrived in March, business wasn't as brisk for his employer, a benefits consulting company, and the stock market had "tanked in the first quarter." He bought a used 1999 Nissan Maxima instead for about $17,000. "The early rumblings were that things had slowed down a bit. This year just didn't start as well as last year," said DeVries, who faced a $550 monthly payment on the BMW. "A year from now I might not feel comfortable with a payment that high. It just didn't seem like the right time to make such a major financial commitment." Taylor says sales of vehicles priced more than $40,000 also are declining because leasing customers are finding monthly payments much higher now than the last time they leased three or four years ago. After losing hundreds of millions of dollars on leases in recent years, car companies and banks are writing leases with much lower and more realistic residual (or resale) values, which pushes up the monthly payment. The NADA estimates that cutting the residual value of a $35,000 car from 70 percent to 50 percent of the original price adds about $110 to the monthly payment on a three-year lease. Sales of cars and light trucks hit a record 17.4 million units last year, and luxury vehicles accounted for 2.3 million, Jacobs said, also a record. This year, she expects industry sales to drop 9 percent, to 15.8 million, and luxury vehicles to drop 11 percent, to just more than 2 million. "We will see the industry get closer to the replacement of vehicles on a normal cycle. We are returning to a time when people don't replace their vehicles for fashion purposes." Jacobs doesn't expect the stock market to quickly bounce back to 20 percent annual growth, but if it does, sales of luxury vehicles will take off with the Nasdaq index. "The slump in the luxury vehicle market will only last as long as the slump in the equity markets," she said. She expects luxury sales to stay at about 2.3 million for the next six years, and Baby Boomers will buy the bulk of them. After 2007, the luxury segment should decline as more Boomers cut back on vehicle purchases. "The demographics for the luxury market are very favorable through most of this decade until the Baby Boomers start retiring. They are in their high-income years, more of them will be empty nesters and they have more discretionary money," she said. Jacobs defines the luxury market by brand instead of price. She includes all BMWs, Audis and Infinitis, for example, some of which start at less than $30,000, but not Buick Park Avenues or Chevrolet Suburbans, which cost more than $30,000. |
|
| I bought the Ultra Lux option because of the gadgets. I have no problem using the gadgets. I wish there were more. The only complaint I have is that the heated and cooled seat "gadget" is lame. The seats will get slightly warm or slightly cool, but that's all. Plus you have to remember to turn it off. I'd gladly switch to good old resistance heat with an auto off switch. I miss the warmth. I don't need my seats cooled. | |
|
Thanks for writing in about your gadget experiences. The Wall Street Journal is collecting some great anecdotes from you. I'll make sure to share the story when it is published. Now, are there any takers for the leasing story? Again, a major financial publication is wondering if anyone leasing a vehicle has been offered the chance to buy it before ending the lease. Whether or not you seriously considered the offer, your story will be interesting to the reporter. Your identity will be protected at your request. Thanks as always! |
|
|
I'm a reporter seeking someone to talk to who owns a 2002 Ford Explorer. Please contact me at userfcris.com. Thanks. |
|
You are here:
Forums
Smart Shopper Talk to the Press
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
Browse by Board
Browse by Topic
Today's Chats
