Luxury vehicle sales in the first quarter rose 1 percent while total U.S. sales dipped 3 percent, in line with Cox Automotive’s expectations for the full year. Q1 sales and share of midsize and compact luxury utilities rose while luxury full-size utilities held steady. Average transaction prices were higher in all luxury utility categories. Meanwhile, sales and transaction prices for luxury cars in all categories dropped.
Affordability is ranked fifth for its importance to consumers buying luxury vehicles and third for non-luxury buyers, according to the latest Kelley Blue Book Brand Watch™. Despite a strong economy and stock market, like non-luxury buyers, luxury buyers increasingly seek value as buying conditions worsen, the threat of tariffs hang in the balance and consumer confidence weakens.