DETROIT - This holiday season, the luxury car buyer is offering a simple phrase: I'm not spending too much.
Wealthier shoppers are trickling back into showrooms after staying away much of the year. But there's a catch. Many are pinching pennies, sort of, by choosing smaller BMW and Mercedes models, or they're buying top-of-the-line cars from cheaper brands.
This year, almost 14 percent of luxury buyers replaced old vehicles with brands other than traditional high-end names such as Audi, BMW,
Cadillac,
Infiniti, Jaguar, Lexus,
Lincoln, Mercedes and Porsche. That's up from just 4 percent in 2006 and a reminder that these buyers still don't feel as wealthy as they once did. Home values are still down and portfolios shrunken, despite the stock market's gains this year.
Two potential beneficiaries of the shift are
Buick and Hyundai, brands offering luxury models that are much cheaper than Beamers and Audis.
Another winner is Hyundai's Genesis, which has received stellar reviews for its luxury and handling but can cost $15,000 to $25,000 less than higher-end cars.
Joan Sher, a Fort Lauderdale, Fla., real estate agent, switched over last month when she gave up her Mercedes GL450 sport utility vehicle for a loaded-out Genesis.
Replacing the Mercedes would have cost more than $60,000, so Sher opted for value and spent $44,000 on the Hyundai.
"It's more affordable but at the same time a very comfortable car," she says.
