Fancy That: Luxury Car Sales Take a Powder

Whether or not they could afford a high-end luxury car, most buyers don't want flaunt expensive purchases either in the employee parking lot or neighborhood driveway. BMW calls this "The most difficult period we've experienced in North America." "People don't want to look like they have money now," says a Lexus executive. There will be more pain before any gain, with luxury car sales expected to slump for some time. Premium car sales help to subsidize profit margins while more plebeian cars fight it out in the trenches with razor thin profit margins, much as SUV sales propped up the sales of passenger cars for the big three for years.

source: wsj