It's probably the number one auto question I get this time of year. No, it's not about what new models will pop up at the Detroit Auto Show in January.
The main question I get is why the luxury auto companies do so much advertising during the holidays? A close second: How many people actually put a big red bow on a new Lexus, or Mercedes, or BMW? Fact is, the luxury dealers do very well this time of year. Partially because they push strong end of year deals and partially because the luxury dealers are racing to meet sales targets.
This year, as the leasing market has returned, the high end car dealers are offering some of the best leasing deals seen in years. With the economy rebounding and consumer confidence picking up, luxury dealers are seeing strong business right now. It' fueled also by the race between Lexus, Mercedes and BMW to finish #1 in luxury sales.
Heading into December, here's where they stand:
- Mercedes: 203,530
- Lexus: 201,769
- BMW: 196,833
So yes, the next time you see a commercial with a husband or wife seeing a new luxury car or SUV in the driveway, remember that this is the season to lure high end buyers.
As for those big red bows, dealers tell me they occasionally rent them to customers who want to surprise a spouse with a new luxury ride. But most of the time, the buyers are more interested in just driving out of the showroom in a new car.