Let Them Eat Cake!

As many Americans suffer from the recent economic downturn, the rich don’t want to become the scapegoat. So as many people forgo that new-car purchase due to a lack of financing, or perhaps even a lack of a job, the nation’s best-financed families have also forgone that new Bentley or Rolls-Royce. The only difference (and it’s a big one) is that their decision is psychological, rather than resource-driven. 

Consumers with a net worth of between $3 million and $5 million are buying fewer ultra-luxury cars because they are concerned about what would happen to their image: “Will they be seen as evil Wall Street tycoons or successful business people?” asks Bob Austin, founder of consultant Auto Futures Group.

Subsequently, sales of vehicles in the recently booming $100,000 range are dropping like … well, like every segment of the automotive universe. Below is a list of some luxury makes that have been affected. Note that many of these makes sell just a little above 1,000 vehicles in the States annually, so a few weary buyers severely affects sales output.

Percent change from August 2007 to August 2008:

Make/Percent change (YTD)

• Aston Martin: -15%
• Bentley: -29%
• Ferrari: -8%
• Maserati: nil
• Maybach: -8%
• Porsche: -15%
• Rolls-Royce: +5%

*All numbers rounded up; data comes from Automotive News via Advertising Age.