Trade-in rate for top of the line luxury cars on the rise -USA TODAY

[Q-less]

I bet you think this is about resale value........wrong. This article echoes one of the big reasons I sold my Q. I bet as you read the article it supports what some of you have thought as well about premium and high gas prices.

http://www.usatoday.com/money/...x.htm

Trade-in rate for top-of-line luxury cars on rise

By Sharon Silke Carty, USA TODAY

DETROIT — The luxury car market, once considered immune from high gas prices, is starting to show signs that even some wealthy folks could be feeling the pinch. Data from the Power Information Network shows that an increasing number of owners of top-of-the-line luxury cars are trading in their high-priced wheels for entry-level luxury cars and even switching to the non-luxury brands' bigger, pricier compact and midsize cars. (Photo gallery: Luxury gas guzzlers)

Overall sales of luxury cars are up because of sales of smaller models. In October, sales of entry-level luxury cars were up 7%, and sales of midlevel luxury cars were up 1.2%, according to Autodata. But sales of the top-end luxury cars were down 10.6%.

"There is definitely a movement downward," says Tom Libby, senior director of industry analysis at PIN. "Everyone has been talking about the decline in big SUVs, but no one has really talked about this similar movement away from the large luxury cars."

The trend has followed the increase in gasoline prices, which peaked at an average above $3 a gallon after Hurricane Katrina. Prices are still above $2, and that's for regular. Many luxury cars call for premium.

Allen Reeves, a retiree from Franklin, Tenn., is considering getting rid of his 1998 Lincoln Mark VII. "It uses premium fuel, so prices hit me pretty hard."

In the auto industry, conventional wisdom holds that anyone who can afford a $40,000 car likely has enough money to shoulder high gas prices. But the average age of large luxury car owners is in the high 60s, says Art Spinella, president of CNW Marketing Research. "They still have a pretty healthy income, but it's not the same. ... For the most part, they're on a fixed income, even if it's a high income."

Another reason for the move down, says Spinella: Consumers are growing fonder of smaller cars and don't want to be seen in a luxury car that reminds them of the boat their grandfather used to drive.

Lonnie Miller, director of industry analysis for the Polk Center for Automotive Studies, says gas prices would have to reach $4 a gallon and stay there for a while before the luxury market would be severely affected. Luxury buyers get used to a certain level of amenities and are reluctant to give that up, he says.

Jeff Martini, vice president of Polk's research center, says luxury customers will likely give up other things before trading in their cars.

That's true for Paige Meade, an accounts manager from Clifton, Va., who owns three luxury vehicles and has no intentions of getting something more economical. "We're just bracing ourselves and cutting back in other ways."

[elwesso]

Saying that your car uses premium for a reason to get rid of it is SO WEAK it makes me sick.. That fool with a mark VIII cant spend the extra $200 tops per year that it costs for premium.....

Kills me, but at least that makes it better for those who want to buy used.

[Q-less]

Most top of the line luxuries leave you to feed a premium V8.................if V8s weren't so damn thirsty, there would be no haste to trade them in.

I think the article shows people are readying for the next time the oil companies slit our throats on the drop of a dime. Notice gas is coming down............but wait, could there be a link from the heat they recently recieved about their record profits.

#1 reason I sold my Q in perfcect running condition that I loved as a second pen15...............V8

#2 reason...................premium fuel

I remember a lot of people whining during the last so called gas shortages of having to put in lesser grades than premium because of stations being out. I drove my Prelude for a month becasue of just that.

I don't really think the rich get rich by being stupid. I think that anyone that is in a position to buy a brand spanking new luxury vehicle and can without a doubt afford it.......yet, decides to trade it in is far from stupid.

[CrimsonQ]

some people need to stop driving so much

[Jesda]

What an idiot. It fine by me though. The Mark VIII is a nice car and thats another reason to drive down the resale value for my benefit.

[Aus94Q45]

The first gen q's are not "big" cars. In fact, it looks rather mid-sized when compared to todays mid-size cars. Further, I just averaged 18+ on my last tank -- hardly gas guzzeling. It gets over 22 on the highway. Yes it is not a Jetta TDI (43 mpg+), but it is not your grandfather's land yacht either.

My grandfather drove an early 70's Chrysler Ny'er with a 4 bbl 440. You could punch it and watch the fuel gauge drop -- 8 mpg at best on a good day. Q's are not the most fuel efficient cars out there, but they are in the middle of the pack. In the big picture -- right or wrong --cars in this range won't go away.

Additionally, the oil company's are now exposed by their greedy record profits and mysteriously found new oil supplies right as Congress was calling them on the mat. The prices dropped overnight and have continued to fall. I just passed a station that had $1.99 fuel. What explains the big new supply that now allows them to lower the price. The big sham of big gas prices is over for the moment. Hummer sales will quickly rebound. I am all for more fuel efficient cars and getting away from foriegn oil dependency, but pump prices are not solely to blame for a shift away from big sedans.

[franknitty69]

i don't car about gas prices that much. i only drive my q friday-sunday because i work out-of-town mon-thurs.

i would still drive a black on black q45 with active suspension if gas was $5 a gallon.

i bought the car because i wanted the best within a certain price range.

if the kitchen's too hot...

[maxnix]

Saying that your car uses premium for a reason to get rid of it is SO WEAK it makes me sick.. That fool with a mark VIII cant spend the extra $200 tops per year that it costs for premium.....

Kills me, but at least that makes it better for those who want to buy used.

Saying an extra $300 per year is a deal breaker is saying you are in the wrong league financially. Good thing to recognize, I guess.

Sure love my mileage comapred to those large sucking and slow SUV everywhere around me.

[Vmo]

Sure love my mileage comapred to those large sucking and slow SUV everywhere around me.

exactly. I have my prelude if gas gets really bad or if I'm just roaming around town, but 22+mpg highway for the Q is fine with me....