Leasing driving demand
One reason luxury auto sales surged last month is the slew of leases being offered with low monthly payments. To quote one dealer, "I can put customers in a BMW 3 Series for $400 or $425 a month over three years. That's a deal customers can't turn down."
Here's another example:
Lexus is offering a 24-month lease on a 2014 IS 250 for $259 a month plus tax. The buyer puts down $1,995 and is driving out of the showroom in a luxury car for a very low monthly payment.
Leasing has long been a favorite tool by the luxury automakers to attract buyers. After all, instead of buying a car for $55,000, many buyers would rather lease it for $600 or $700 a month. Now luxury automakers are expanding their reach, targeting customers on the lower end of the market. Those seeking monthly payments under $500.
(Read more: Auto leasing surges to record high)