New luxury cars are a dime a dozen in the U.S. The trend is gaining traction, as people are willing to pay for luxury that is no longer offered in other markets.
But the trend isn’t just for the supercars and the sporty SUVs.
“There are a lot of other vehicles that people want to have that are not so great in terms of what it takes to be a luxury car,” said Kevin Kwan, vice president of auto and auto parts at Ford Motor Co. “So there are a number of other things you can do, like have more customization options, more options for the driver.”
The latest trend, which includes the likes of the Toyota Camry and the Mercedes-Benz SL550, is called luxury pickup trucks.
There are now over 100 brands in the category, with some making a living off of their names.
They range from a $8,000, five-door hatchback to the $80,000 S550, which has a 4,000-horsepower engine.
They are a huge money maker for some of the biggest names in the auto industry, but not everyone is happy about it.
The New York Times reported last week that a growing number of buyers are opting to buy a car instead of a truck in order to save money on their taxes and insurance.
Some of these owners are frustrated by the trend.
“The trend is very negative and the prices are a little bit low, but it’s a lot more expensive to buy the truck because it’s just so far out there,” said John Goss, an automotive analyst at Kelley Blue Book.
“It’s so much more of a luxury thing.”
The New Yorker, a luxury-vehicle magazine, reported last month that the average new vehicle sold in the United States is $15,000.
But that doesn’t take into account what the average buyer has to pay to get that vehicle.
“People are not necessarily looking for that luxury, but they’re looking for something they can have a bit more control over,” said Kwan.
“They want to be able to make a more thoughtful choice.”
One way for the consumer to control that is to buy more of their own vehicles.
The idea is that the extra money you save from owning a vehicle will go to paying for your own transportation, not just paying for insurance.
In the U, that means paying a monthly fee for a private transportation provider.
It’s similar to a private car insurance plan.
If you get a $10,000 monthly premium for the ride you take, it’ll pay for a $2,500 private transportation account.
But if you don’t have that type of money in your pocket, then you’re just paying more for your vehicle.
So the idea is to make the money back by renting out your vehicle or buying a vehicle yourself.
“If you’re going to spend the extra $10K, that’s a great way to do it,” said Goss.
But he’s concerned about how much money consumers are actually saving.
“I think the money they’re saving is going to go to a lot to do with the fact that they are buying their own vehicle and then paying that monthly fee.
And the money that they’re not saving will go on insurance,” said James P. O’Connor, an economist with the Peterson Institute for International Economics.
“You’re paying a lot for insurance, but you’re not actually paying anything for the insurance.”
But it’s not all bad news for luxury-car buyers.
“We’ve seen a lot less of the big premium increases and more of the incremental revenue,” said O’Brien.
“In a sense, I think it’s going to become more popular.”
A $40,000 luxury car is an affordable luxury, and some buyers are buying it for that reason.
But some have become frustrated by premium increases, and others aren’t paying enough for insurance in order for the vehicle to be affordable.
“This is an industry where a lot has changed since the 1970s, and people are not quite as comfortable with the way things are going,” said Pachula.
“And there are so many more options.”
And luxury cars aren’t necessarily the only option for some buyers.
The new generation of luxury SUVs is also gaining popularity.
In 2016, there were a record 5,000 new luxury SUV sales, up nearly 50 percent from the year before.
“What I find interesting is that, in terms to luxury, the luxury model is more popular now than it was five years ago,” said Michael Henn, an analyst at KPMG.
“The luxury model has become a very, very popular segment.”
But Kwan said there is a risk that the luxury-SUV market could be cannibalized by other categories that are becoming less expensive.
“As people get more used to the luxury segment, and they see that it’s really a good way to be, you know, the