THE SHOP

November '18

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4 THE SHOP NOVEMBER 2018 \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ © 2018 National Business Media, Inc. All rights reserved. THE SHOP (ISSN 2380-7415) is published monthly by National Business Media, Inc., 2800 W. Midway Blvd, Broomfield, CO 80020; (303) 469-0424; FAX (303) 469-5730. Subscription rates in the U.S.: One year, $45; Two years $80; Three years $108. Canada: One year, $76; Two years, $142; Three years, $201 (U.S. Funds). Mexico/International: One year, $98; Two years, $186; Three years, $267 (U.S. Funds). Periodicals Postage Paid at Broomfield, CO 80020-9998 and additional mailing offices. USPS/National Business Media Automatable Poly. POSTMASTER: Please send address changes to THE SHOP, PO Box 460651, Escondido, CA 92046-0651. All items submitted to THE SHOP become the sole property of THE SHOP and National Business Media, Inc. and may not be reproduced without the written consent of the publisher. Advertisers and/or their agencies, jointly and severally, assume all liability for printed advertisements in THE SHOP. Opinions expressed in THE SHOP may not necessarily reflect the opinion of the magazine's editor, its management or its advertisers. Letters, photographs and manuscripts welcome. t's understandable that luxury vehicles are not always prominent projects for aftermarket shops. A current trend toward high-end SUVs, however, could change that. The luxury vehicle market is on track for a near-record year, according to a new report released by car shopping company Edmunds. Data reveals that 1.3 million new luxury vehicles were sold through August 2018, accounting for 11.4 percent of the market. Analysts note that an expanding lineup of SUVs is driving this growth, with sales of luxury SUVs hitting an all-time high of 62 percent of luxury vehicle sales so far this year. "Luxury SUVs are a winning strategy all around right now. Car buyers are willing to consider an SUV in pretty much any form they can get them, and the premium price tags SUVs command make for nice profit engines for automakers," says Jeremy Acevedo, manager of industry analysis at Edmunds. "However, the flood of SUVs in the market is also driving up prices of new vehicles overall, blurring the lines in the eyes of car shop- pers of what luxury really means." If your shop has shied away from SUVs, or high-end vehicles, or both, the 2018 Edmunds Luxury Report targets some opportunities: • The price gap between luxury and mainstream vehicles is shrinking. Edmunds data reveals that the price gap between luxury and mainstream vehicles has narrowed from 58 percent to 48 percent in the last 10 years. • The mass migration to SUVs has removed some of the luster from luxury nameplates. On average, a midsize car from a luxury brand sells for 107 percent more than one from a mainstream brand, but a midsize SUV from a luxury brand only sells for 48 percent more than one from a mainstream brand. Edmunds experts note this could pose a risk to luxury brands as shopper preferences continue to move toward larger vehicles. • Jaguar, Porsche, BMW and Audi do the best job at attracting luxury loyalists— car shoppers who only cross-shop luxury vehicles. Lincoln, Volvo and Acura are most likely to attract shoppers who are also cross-shopping mainstream brands. • Lincoln, Genesis, Cadillac and Volvo attract a competitively lower share of luxury loyalists, but do the best job of keeping those buyers loyal to their brands. While brands such as Porsche, Jaguar and Land Rover attract a lot of luxury shoppers, they're missing an opportunity to keep them in the family, as a high share of shoppers opt to trade in their vehicles for a luxury vehicle from another brand. More luxury SUVs on the streets means more customers looking for performance, utility and aesthetic improvements. That means it is possible your next prominent project could be a nice SUV after all. Nice SUV I \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ DRIVER'S SEAT PUBLISHER REGAN DICKINSON rdickinson@nbm.com EXECUTIVE EDITOR JEF WHITE jwhite@nbm.com DIGITAL CONTENT EDITOR ANTHONY BOWE abowe@nbm.com ART DIRECTOR IVETH GOMEZ igomez@nbm.com GRAPHIC DESIGNER LINDA CRANSTON linda@nbm.com EASTERN TERRITORY SALES MANAGER WENDY MILES wmiles@nbm.com WESTERN TERRITORY SALES MANAGER RYAN WOLFE rwolfe@nbm.com SALES SUPPORT ERIN GADDIE egaddie@nbm.com TECHNICAL CONTRIBUTOR MIKE MAVRIGIAN birchwdag@frontier.com CONTRIBUTING WRITERS JOANN BORTLES, JOHN CAROLLO, JARED COHEN, JOHN GUNNELL, PATRICIA KAOWTHUMRONG, RON KNOCH, ANDY MARKEN, COURTNEY PAHLKE, DINO PERFETTI, JOSH POULSON, JASON R. SAKURAI, TOM SMISEK, TONY THACKER, LARRY WEINER NATIONAL BUSINESS MEDIA PRESIDENT & CEO ROBERT H. WIEBER JR. VICE PRESIDENT/INTEGRATED MEDIA JOHN BENNETT VICE PRESIDENT/PUBLISHING DAVE POMEROY VICE PRESIDENT/FINANCE KORI GONZALES, CPA VICE PRESIDENT/NBM EVENTS SUE HUEG, CEM, CMP VICE PRESIDENT/AUDIENCE LORI FARSTAD DIRECTOR OF TECHNICAL SERVICES WOLF BUTLER MULTIMEDIA PRODUCER ANDREW BENNETT Jef White Executive Editor www.theshopmag.com

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