Luxury carmakers are offering discounted prices on their luxury goods to try and drive consumers into buying at least one brand in their line-up.
Key points: Luxury cars are also being offered at discount prices on luxury clothing source ABC News’ Claire Jones article The biggest luxury brands are selling their most expensive products at discount on their online store to try to drive consumers towards their biggest brands.
These discount deals have been on the cards since May, but have only recently been rolled out in Australia.
Luxury brands are also taking advantage of the new low interest rates to try keep consumers coming back to their stores.
They’re selling at a discount because they’re not seeing the same sales growth as the big brands, or because they have other sales in their portfolio, including clothing and jewellery, said Lisa Goss, CEO of retail consultancy, Lifestyle Retailer.
“We’re seeing people looking for the luxury brands that are on sale.
There’s a lot of exclusivity in that category,” she said.
Lifelong luxury brand Jumbo Luxury Cars is the latest luxury car company to sell at discount, as it’s one of the few brands still selling cars at a reasonable price, and because it has an extended runway of luxury vehicles, and its luxury car line-ups have been getting better, Goss said.
“You might think you’re going to see the big names at full price, but if you look at the range of cars that are selling, it’s not even there,” she explained.
“It’s not a luxury brand in that it’s selling cars for $1,200 and $1.5 million and then selling them for $100,000, $150,000.”
Goss said many of the big luxury brands have been able to sell some of their older models at a lower price, or at half price, because they can get the quality at the same time.
“If you look in the past few years, there have been some of the biggest brands that have done that, like Mercedes-Benz and BMW, because the brands have all got their vehicles in good condition and they can afford to do that,” she noted.
“They can sell them at a much lower price because the price is cheaper.”
In the past year, the prices have fallen, but it’s just been the price that’s gone up.
“Low interest rates mean lower interest rates for most consumersWhile low interest rate policies have been a key factor in driving up prices, a number of consumers are now also having to borrow to get their hands on high-end products and vehicles.”
The rate of interest that you’re paying is less, which is probably one of those things that is making it harder for people to get into the luxury market,” Goss explained.
But with the low interest interest rates, it doesn’t mean consumers are having to buy their own cars.”
There are still a lot more people that want to buy a luxury vehicle than there are people that are willing to buy one at this price point,” she added.”
So, they’re still buying luxury vehicles that are not on the market.
“With low interest, you’re still paying a premium for that, so you’re really getting your money’s worth out of it.”