EurtotaxGlass’s believes this is in stark contrast to most other prestige car sectors that have seen growth in registrations and stable residuals.
Sales of the four best-selling models in the luxury car class (BMW 7-series, Mercedes S-class, Audi A8 and Jaguar XJ) have declined by more than 25% over the past five years. During the same period the prestige car market as a whole has grown by 50%. The net result is that the luxury car share of the total premium-brand market has fallen to 2.5%.
“A number of factors have contributed to the decline of the luxury car over recent years,” says Richard Crosthwaite, prestige car editor at EurotaxGlass’s.
“There is much more choice in the market than ever before, and many traditional luxury car buyers migrating to prestige-brand SUVs and niche coupe models. We’re also seeing more affordable new luxury cars from the likes of Aston Martin.
“Fundamentally, there has been a sea change in attitude towards the traditional big saloon. It is not considered as desirable as it once was, it has higher running costs than some of the more contemporary alternatives and, crucially, buyers are becoming more aware of the high levels of depreciation.”