Luxury car sales herald economy whiplash

by Media Services on 22 Dec 2009 Sales of high-end sports cars and cabriolets show that people are sick of sitting on their money, lashing out with pre-Christmas brand items and sports cars.

And the growth segment is in cars that make a statement, not those that save the environment. New-car buyers are shunning environmental responsibility and belt-tightening and splashing out on high end luxury marques.

A social analyst with Quantum market research, David Chalk, said the company's latest AustraliaScan survey revealed a big shift in new-car buyer priorities.

'In our most recent survey, the factors that were most important to people buying a new car were prestige, performance and the ability to tow,' Chalk said.

Environmental responsibility had dropped off the radar with buyers, while growing confidence about the economy had also influenced purchase decisions.

'We restrained ourselves last year and we pretended we wanted to buy a Toyota Prius or Honda Jazz,' Mr Chalk said. 'We were also scared by the global financial crisis. But there's a feeling now that we've dodged a bullet and are headed back to good times.People are saying, Why not buy a car that I enjoy?'

The threat of higher interest rates was balanced out by more confidence about long-term employment prospects.

'People are feeling more secure about their employment and have the confidence to commit to a lease deal,' he said.

The findings are backed up by recent sales figures, which show the GFC and recent interest rate hikes have done little to dampen consumers' enthusiasm for expensive sports cars and convertibles.

Sales of sports cars costing between $80,000 and $200,000 have grown by almost one-third in the past quarter, buoyed by a rush of new open-top models to hit the market this year.