Read enough industry reports and you come across some interesting information. In other words, even though I follow the used car industry pretty religiously, I am continuously learning new facts that help me provide you better information.
Case in point would be this tidbit from the Automotive Lease Guide. The revival of the luxury vehicle market, both new and used, is tied to the housing rebound. ALG reports, “Beginning in the late ‘90s, housing prices began to see sharp increases in year-over-year growth. Many homeowners used this increase in home equity to purchase a luxury vehicle. In December 2007, the US economy began to show tell-tale signs of an upcoming recession. Mid-2008 brought in a freefall recession and reduced home equity across the country.”
As real estate prices dropped in most parts of the country, not only homeowners were affected. Also feeling the pinch, ALG points out, were the real estate, mortgage lending, banking, and construction industries. All of this has combined to drive down the prices of luxury vehicles.
However, once the real estate market starts to improve, you’re going to see a spike in luxury car prices. Pay attention to those increases. You’re going to get your best bargains now. So, there is one silver lining in this dark economic cloud we call housing prices.
OOYYO's comment: If you have enough money to buy luxury car, now is the right time!
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