LUXURY CARS ON A ROLL

September 16, 2008
Michael Sheehan

Physician's Money Digest, February28 2003, Volume 10, Issue 4

One theory for the anomaly:

Sales of luxury cars usually marchin lockstep with the stock market, butnot this time around. Even as theDow was plummeting almost 17%this past year, sales of luxury carswere up 4%. Consumers are raiding theirportfolios to buy flashy new wheels,figuring it's a lot more fun to drive abrand-new car than it is to watch yourstocks in free fall. Analysts also pointout that many investors, thanks to thego-go market of the late 1990s, arestill well into positive territory despitethe bear market of the past 3 years.And even though a BMW or a Lexusprobably costs more than your grandparentspaid for their house, industrywatchers maintain that luxury carshave actually become more affordable,one reason why they now command10% of the US auto market.