Unsold Luxury Car Inventory Causing Prices to Drop
Getting a great, affordable deal on a luxury car may seem too good to be true. But there’s never been a better time than right now to buy luxury vehicles at reasonable prices –and that’s because, as AutoWeek reports1, many dealerships are being left with excess inventory due to a combination of market demand shifts and an influx of luxury models.
If you’re in the market for a luxury car, acting now could save you substantially. Here’s what you need to know about luxury vehicles: why they’re more affordable now, and what you need to do to find the best deals.
What Exactly Is a Luxury Vehicle?
Luxury cars are typically vehicles with premium features that go well above and beyond basic necessary functions, according to US News. High-end materials, like wood and leather, are often incorporated into the interiors of luxury vehicles, as are premium sound systems and other advanced infotainment features. Enhanced safety features, such as adaptive cruise control, are also usually found on luxury cars.
Luxury vehicles also tend to involve a special performance component. Many, though not all, luxury vehicles feature powerful engines and perform beyond the level of a basic car, Consumer Reports writes2. Performance luxury vehicles often include enhanced transmissions, suspensions, and braking for a smoother and more responsive driving experience.
Monthly Payments for Luxury Vehicles are More Affordable Than Ever
If you want a luxury car, now may well be the best opportunity you’ll ever have to get a deal on one. Two developments in the car market have combined to put considerable downward pressure on the prices of new luxury cars.
The first is the fact that off-lease used luxury cars have become widely available over the last two years, giving buyers access to low-mileage, relatively “new” used vehicles, USA Today reports3. The second is a more general phenomenon in the auto market, which is the shift in consumer demand away from sedans and toward SUVs, as Forbes notes4. This shift has left many automakers with excess supplies of luxury sedans that were once in high demand. Combined, these two effects have created a glut of new luxury car supply in a market where demand is waning, driving prices across the board down.
This situation has led manufacturers and dealerships to offer various deals that bring down the monthly payments on luxury cars. For instance, BMW is offering5 a 60-month 1.9 percent APR incentive on its 2018 3-series. Jaguar’s F-TYPE models6 are currently eligible for $1,500 in customer credit. The 2018 Lincoln Continental offers generous terms7, with 0 percent APR financing for 60 months and a $1,500 bonus cash offer. Between cash incentives and low financing rates, deals such as these are bringing down the monthly payments associated with buying a luxury car.
How to Find the Best Deals
Even though luxury car makers and dealerships are offering considerable deals on their inventory, you’ll still have to do some work to find the best prices. Searching for deals online is often the best option, as it allows you to see both manufacturer and individual local dealership incentives, as well as compare the offers that are available on different models of luxury vehicles. In addition, many deals are placed online exclusively in order to reach a broader range of potential customers.
To save even more money, you can also wait for dealerships to discount unsold inventory. Keep an eye out at your local dealerships to find out when inventory clearance sales are occurring. If you can make your purchase during one of these sales, you can save hundreds or even thousands of dollars.
If you’ve always wanted to drive a luxury car but never thought you could afford one, right now there are opportunities to save big. The auto market is making luxury cars much more affordable than usual, but this climate won’t last forever. Start looking for deals now if you want to take advantage of the available incentives, because odds are they won’t last long.