Motoring News

Marketing tips and figures for luxury car brands

If you are involved in the luxury car market, then these figures and marketing tips will definitely be useful to you, but even those of us that just have an interest in luxury car brands will find the information of interest.

Do you agree with the marketing research? What are your thoughts on the figures that are circulating at the minute?

High luxury motor car manufacturer Rolls-Royce kicked off ‘The Icon Tour’ on April 22, at the Flower Dome in Gardens by the Bay to celebrate 110 years. The tour showcased the exemplary company history and renowned icons Ghost, Wraith and Phantom, with factory artisans present. Rolls-Royce places great emphasis on the bespoke business as the majority of ultra-high net worth customers (UHNWI) seek extensive personalization. Rolls-Royce is eyeing the Asian market for its good potential; the tour is set to make further stops in Tokyo, Hong Kong, and Seoul.

Rolls-Royce invited Agility Research & Strategy to make a presentation on the day of opening. The talk conveyed key Asian market insights regarding the affluent consumer generation that will drive business for years to come. The 2013 study involved more than 7000 consumers to understand the top 40% income segment and their relationship with brands.

This emerging class has been named Generation AAA after their unique traits; they are aspirational, ambitious, and affluent. It possesses the financial power and propensity to buy mid- to premium-priced brands.

About Generation AAA –

  • Generation AAA is a young group at 18-34 years, with an equal gender distribution.
  • More than 75% have earned a university degree or higher, and of this majority, 62% are in mid- to high-level influential positions in their respective companies, while about 6% are entrepreneurs.

Key Insights from Agility Research & Strategy

  • Generation AAA dominates Asian markets such as China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Taiwan, and Vietnam. Within the next 12 months those in India are the most likely to purchase a car, followed by Indonesia and China (figure 1). The high inclination for car purchase in India and China can be attributed to the swell in ranks of the well-to-do, and changing taste in cars.

Agility chart_1

  • The majority of Generation AAA chose the price-quality relationship as the most important consideration when buying luxury cars, followed by their identification with the brand, and the individuality the brand conveys to others (figure 2).
  • Brand pricing relative to quality is vital as the pricing and marketing signals put out have to be consistent with consumer expectation. Brand identification and conspicuous individuality are important as users view purchases as an extension of themselves.

Agility chart_2

  • Generation AAA also rates Rolls-Royce among the top ten luxury cars (table 1), while BMW is rated as the top brand in Singapore, Malaysia, Hong Kong and China, and Mercedes Benz is rated higher in India and Indonesia.

Agility chart_3

Top 3 Tips for Luxury Car Brands by Agility Research & Strategy

  • There is high market potential in India, Indonesia, and China over the next year and foreseeable long term. Luxury car brands should ramp up marketing frequency and intensity in those significant areas to penetrate consumer consciousness.
  • Consumers’ main concerns are brand and pricing relationship, brand identification, and ability to use the brand to express individuality. Brands must seek to create coherence between their pricing strategies and brand equity to appeal to consumers; a high pricing must be supported by a reputation, while low prices may dilute brand value. Luxury car brands must also profile their target markets more accurately to achieve a good fit with consumer identity. Consumers prefer brands that are a good fit with their self-image or ideal self-image, and brands which can serve as a form of expression.
  • Each automotive giant may well be banking on a different strategy based on their individual luxury brand rankings. Brands may need to decide on the optimal spot based on their target market size and intended exclusivity.

Source http://www.marketing-interactive.com/events/top-3-tips-luxury-car-brands/

Are luxury cars more affordable in todays market?

Do you think you can afford a luxury car? The luxury car market is going from strength to strength even through the recessions we have seen of late. More people are looking to invest in luxury cars, but don’t quite have the budget.

If you’ve been casting envious eyes on those Mercedes and BMWs in the office parking lot, you may be wondering if you could fit a luxury car into your budget. Luxury brands have been reading your mind and indeed have brought out more affordable models. But make sure you calculate all the costs that come with owning a luxury car — not just the purchase price.

You wouldn’t be the only one considering so-called entry-level luxury cars — those with purchase prices often starting under $35,000. Growth in this segment has been a major reason that luxury vehicles have increased their market share in recent years, according to an April report from analysts at the National Auto Dealers Association Used Car Guide. “The data suggests that the growth was due almost exclusively to new buyers entering the market,” not habitual luxury buyers trading down to less expensive models.

One of the entry-level luxury models’ best financial qualities is high resale value. And that leads to a more affordable way to drive a prestige model — by leasing it. The NADA Guide report notes that entry-level luxury cars on average retain 48.8% of their original value after three years, more than other luxury segments.
“The lower the rate of depreciation, the lower the lease payment,” notes NADA analyst Laurence Dixon III. For instance, the Lexus ES currently has a lease deal for $349 a month for two years with $2,999 due at signing.

Whether you get a good lease deal or buy the luxury car, that’s only the beginning of your expenses. As with any car, insurance, fuel maintenance and repair costs still have to be paid. To see the differential in costs, let’s compare an entry-level Mercedes-Benz C250 (selling at an average of about $35,900, according to TrueCar.com) with one of the best-selling midsize sedans, the Toyota Camry XLE, the best-equipped Camry with an average selling price of $23,061.

Here’s a look at comparative costs to own these cars:

Fuel Cost — The Mercedes, like most luxury cars, requires premium gasoline, while the Toyota, like most mainstream brands, uses regular. The current national average for regular is $3.64 a gallon vs. $4 for premium, according to AAA. The Mercedes C250, with a rating of 25 MPG in combined city and highway driving would rack up fuel costs of $2,400 per year, according to fueleconomy.gov. The Toyota, with a 28 MPG combined rating would come in at $1,950. That’s an extra $450 in your gas budget each year.

Insurance — First-time luxury car buyers are sometimes startled at their bill to insure that car. Following our example, InsuranceQuotes.com gives the following comparison for the two cars being insured in Northern California. For an age 40 married man or woman, the monthly insurance bill would be $173 for the Mercedes and $130 a month for the Toyota Camry. That’s more than $500 a year in extra insurance costs. To compare the insurance costs of your current vehicle to cars you might buy, go to Insurancequotes.com and scroll down the right side to the section called Car vs. Car. You can get an estimate using your age and zip code.

Maintenance — Oil changes and other routine maintenance typically cost more at luxury brand dealerships. As a selling point, some luxury brands like BMW offer free maintenance for the first 50,000 miles on a new car. But in our comparison, Mercedes-Benz does not offer a free maintenance program for this model. Toyota, unusually for mainstream brands, does have free maintenance for two years or 25,000 miles, whichever comes first.

Repairs — For repairs that go beyond standard maintenance, luxury dealers are also more expensive. You may be able to cut repair costs by avoiding dealers and going to independent repair shops that specialize, say, in German cars. But double check to see if that still meets the conditions of your warranty.

The comfort, style and prestige of owning a luxury car may in fact outweigh the extra costs for you. Just be sure you have an idea of those costs before you decide to buy or lease.

If you would like to experience a luxury car before going out and buying one, take a look at our website and see what we have to offer

Source http://www.cbsnews.com/news/thinking-of-buying-your-first-luxury-car/

Mercedes-Benz wins more awards in the UK than any other car manufacturer

Mercedes-Benz has yet again been one of the most awarded car manufacturers in the UK. Despite being German, the luxury car manufacturer has a huge fan base in the country and to be honest we can see why.

The Sonder Klasse (Special Class in German) has received more awards in 2014 than we can count with our fingers, with the latest to arrive earlier today.

The Mercedes-Benz S-Class was accompanied by the E-Class, with the two models being named “Best Luxury Car” and “Best Executive Car” respectively at the 2014 Fleet World Honors. 

Praised for the large array of safety systems introduced with its mid-cycle refresh in 2013, the Mercedes-Benz E-Class W212 was also complimented for its range of diesel engines, as we all know how pretty much all fleet cars in the UK are oil-burners. 

“The E-Class got a major facelift last year that included adding a huge amount of clever safety kit as standard and improving quality all round. So it’s now a very different car and it shows in the success it has had in fleet. The hybrid diesel is the best hybrid on the market and the traditional diesels are now extremely competitive too.” said Steve Moody, Editor of Fleet World Magazine, who organized the awards event.

Its larger brother, representing the top of the range when it comes to Mercedes-Benz luxury sedans and usually featuring technologies that will trickle down on other cars in the future, was commended for the smooth blending of luxury, refinement and comfort. 

“The S-Class is ubiquitous, and the new model is only set to make it more so. Mercedes just understands the luxury market perfectly, so you get unmatched levels of refinement comfort and luxury. Its clever new active ride suspension makes a mockery of potholes while options such as Burmester sound system and a whole menu of different types of massage make it the ultimate car in which to work and relax.” said Steve Moody.

In case it wasn’t obvious by now, both the current generations of the Mercedes-Benz S-Class and the E-Class are their segment leaders when it comes to fleets in the United Kingdom, a fact which somewhat explains the number of awards that they are receiving from various British magazines on a monthly basis.

Source http://www.autoevolution.com/news/mercedes-benz-s-class-and-e-class-win-more-awards-in-the-uk-81530.html

140 jobs to be created by Bentley in Crewe

After a record year in 2013, car  manufacturer Bentley is set to create 140 jobs at Pyms Lane in Crewe.

The firm, wants 90 skilled engineers and 51 apprentices as part of an £800 million expansion project.

The announcement follows on from Bentley’s record year in 2013, which saw it deliver 10,120 cars – the highest in the company’s 95-year history.

The company, which employs 3,700 people at its Crewe headquarters including large numbers from North Staffordshire, aims to reach 15,000 cars by 2018.

The firm says the new jobs are set to help strengthen Bentley’s core skills as it builds up to the introduction of the Bentley SUV in 2016.

Dr Ariane Reinhart, member of the board for Human Resources at Bentley, said: “It is vital  we continue to bring fresh thinking into the business and continually develop  talent and craftsmanship.

“We need skilled and committed individuals who will help us sustain levels of excellence that are important to our own successful future.”

The engineers will help develop a new generation of Bentleys.

Twenty one-year-old Anna Appleton, from Sandbach, is currently undertaking an apprenticeship at Bentley.

She said: “I’m pleased to know that even more people will be benefiting from similar opportunities to those that I have had. My own scheme is providing me with a breadth of experience which I potentially would not have received through education alone.

“It’s great news that Bentley is continuing to contribute to the development of young talent.”

Cheshire East Council Leader Michael Jones said: “This is a tremendous vote of confidence in Crewe. It is a welcome boost for the local economy and further proof that Crewe is a town with huge potential.

“Cheshire East will continue to work in partnership with Bentley and other employers – large and small – to ensure we have the right infrastructure and skills that will help bring skilled jobs and investment to the people of Crewe.

“I am confident that this is the start of an exciting and prosperous new future for Crewe.”

Dr Ian Jackson, Enterprise Reader at Staffordshire University, claims the new jobs are a ‘positive’ sign for future growth. He said: “This is wonderful news.

“It is not only good for the local and national economy because these jobs are exactly what we need, but it’s also a signal that Bentley is confident about the future.

“They are stocking up for a future of successful export growth.

“Now we need to retain these jobs. We need qualified scientists and engineers so they can boost the economy and add value because that has a multiplier effect. These jobs will also create foreign currency for the UK with the exportation of these luxury cars.”

Source http://www.stokesentinel.co.uk/Luxury-car-maker-Bentley-announces-creation-140/story-21113200-detail/story.html

Car Dealership Inchcape sees growth in the luxury car market

We are constantly being told that the economy is growing and then it is in decline again, but one thing that hasn’t changed is the desire to have some luxury in our lives. The luxury car market seems to be growing year on year with some impressive figures coming out for the first half of 2014 for some companies.

Car dealership Inchcape said it delivered broad-based revenue growth in the first four months of 2014.

Group revenue was £2.212bn, up by 2.5% at actual currency (up 11.4% at constant currency). Like for like revenue was up by 0.8% at actual currency (up 9.5% at constant currency).

Demand for New Cars was robust overall and ahead of last year as the group continued to benefit from sustained growth in the premium and luxury segments.

Used Car and Aftersales activities, which represent c60% of the Group’s gross profit, performed well and ahead of last year, fuelled by the growth of the 1-5 year Car Parc following four years of consecutive growth in the New Car market.

A disciplined approach to cost control and cash conversion remains firmly in place.

André Lacroix, Group CEO, said:

“Inchcape has delivered a robust trading performance in the first four months of the year. Benefiting from broad-based growth across our markets and categories, we continue to expect to deliver a robust constant currency performance in 2014.

The Group has a track record of delivering premium growth with premium returns. This is a testament to the quality of our business model, our differentiated Customer 1st strategy and strong organisational discipline underpinned by our industry leading processes, which enable our operations to transform revenue growth into sustained earnings growth and strong cash generation.

Our partnerships with the world’s leading OEMs and the strength of our balance sheet position us both to seize attractive consolidation opportunities and make disciplined capital investment in high margin and high growth markets.”

Source: http://www.stockmarketwire.com/article/4812263/Inchcape-sees-strength-in-the-luxury-car-segment.html#sthash.cuzErA2C.dpuf

Luxury Cars making an appearance in Cannes

It’s not often that you get see a truck load of luxury cars being delivered, but when you are in the luxury car business you get to witness them in all their glory.

There is nothing more eye catching than seeing a Bugatti Veyron being driven off the back of a lorry. Even those with no interest in cars can appreciate the beauty of these luxury vehicles.

With all the cars being delivered in Cannes this week, we thought we would show you what has already been delivered down in the South of France.

I hope you enjoy!

Mayback Mercedes 1

What a wonderful sight to see so many Mercedes Mayback in one place

Mercedes G Wagon coming off

The Mercedes G Wagon being driven off the truck

Mercedes G Wagon in the street

Here it is again. This modified version looks right at home in Cannes

Veyron coming off 1

Last but not least the Bugatti Veyron wowing the crowds as it emerges from the truck.

If you like what you see, why not check out our website and hire out one of our luxury cars.

 

Tunisa sell off ex-dictator’s luxury cars

 

THE luxury car collection of Tunisian former dictator Zine El Abidine Ben Ali went on pre-auction display this week in Tunis, more than three years after his ouster.

Sixteen of the 39 cars, seized by authorities after Ben Ali was ousted in January 2011 in the first of the Arab Spring revolutions, were shown off at a casino on Wednesday and Thursday in the suburb of Gammarth. Thirteen other vehicles were displayed in a barracks.

The collection, which has yet to be valued, includes a Porsche, a Cadillac and a top-of-the-range Mercedes.

“Every member of the Ben Ali family owned between four and six cars,” Mohamed Lassaad Hmaied, director of Cruise Tour, the company mandated by the government to sell the vehicles, told DPA.

One of the factors that drove Tunisians into the street in protest was the way Ben Ali’s family used his 23 years in power to amass fabulous wealth.

Among Ben Ali’s wheels was a 1962 super-luxury Maybach, Germany’s equivalent of a Rolls-Royce. That car is to be left off the auction catalogue. The culture ministry has asked it be parked in the Museum of National Memory for posterity.

Would-be buyers have until May 21 to register for the sale, the proceeds of which will be paid into a account used to settle the former regime’s debts.

Tunisia’s cash-strapped technocratic government is hoping to raise millions of euros.

Source http://www.theaustralian.com.au/news/latest-news/tunisian-ex-dictators-luxury-cars-on-sale/story-fn3dxix6-1226920208093

Why you should invest in a luxury car

The luxury car market is growing and changing every day to suit the needs of prospective clientele. Where once before you could only dream of owning one, now luxury car manufacturers are looking at ways to make their brands open to more people.

Sales of luxury vehicles will continue to grow for many years to come, according to Jaguar and Land Rover.

The group marketing director for the British brands, Phil Popham, says there is plenty of growth potential for brands that produce premium vehicles and sell them at a premium price.

“We believe that the premium segments have got significant growth in future,” said Popham, who was in Australia this week as part of a visit to the Asia Pacific region.

“The world has and is becoming a more affluent place, there’s more and more affluent people. They are becoming increasingly brand savvy.”

He said success relied on the desirability of the brand being matched by unique and attractive products.

Popham said the growth would be a mix the arrival of new models and organic growth as buyers aspired to owning a luxury vehicle and wealth increased.

He also said emerging markets such as China and India brought potential for significant growth, while markets such as South Korea presented opportunities due to the greater acceptance of imported vehicles.

Sales of luxury cars have been steadily growing for more than a decade, with most manufacturers selling in market segments they haven’t traditionally competed in.

The bulk of that growth has been from intense competition from German brands Mercedes-Benz, BMW and Audi.

Whereas in the 1990s they produced a selection of luxury sedans and a sports car or two each now produces dozens of body styles covering SUVs, hatchbacks, coupes and the traditional luxury fare.

Much of the sales growth for those German brands has been at the lower end of the market, with each now selling city cars priced below many mainstream offerings.

But Jaguar says it will not follow the German brands as far down the price scale, saying it was too difficult to compete.

“We have no aspirations to be a volume brand, because that’s not our experience, that’s not our expertise.

Popham said the margins and investments required meant it did not make sense.

“[We’re not going to be] getting down into the smaller segments, where we haven’t got the economies of scale, we haven’t got the expertise, it would cost an incredible amount to invest,” he said.

“We’re not going to be a 2 million car company like BMW.”

“But we do want to be seen as a benchmark, we do want to be considered as one of the big players in the premium segment, a benchmark in terms of a our product attributes, in terms of our credibility and in terms of our geographical coverage.

“We have got ambitions to be a substantial player in the segments in which we compete, which is the premium segment.”

Popham said that could mean producing small cars.

“I wouldn’t say we would never introduce smaller cars … it really depends upon the trends,” said Popham.

“We’ll always look around our portfolio of products in terms of trends, where are the growth segments, where do we think we can have a credible product that will make money.”

Source http://www.drive.com.au/motor-news/luxury-cars-have-significant-growth-potential-20140514-389ss.html

What cars are the Mothers of the world choosing to drive?

Mothers day may be over but they are still in our minds when it comes to the cars they drive. What is the car of choice when it comes to Moms? Is the minivan still the favourite or are Mothers opting for a bit more luxury these days?

In honour of Mother’s Day, AL.com is turning the spotlight on moms — and their driving habits.

Auto website Edmunds.com recently conducted a poll of 1,000 moms, which showed that they spend more time driving their children around than they do helping with homework.

More than 66 percent of moms also consider themselves to be better drivers than their spouses, and 37 percent of them would choose pampering for their car over pampering for themselves.

So what they drive must be pretty important, right?

Edmunds also compiled a list of the top 10 coolest vehicles for soccer moms. The website’s choices range widely, from pricey options like a Tesla Model S and BMW X3, to more economical offerings such as a Kia Soul and Ford Flex.

See a photo gallery of the full list.

“If you’re a parent who thinks that family life means your days of driving a genuinely eye-catching vehicle are behind you, think again,” Edmunds says. “There’s a good selection of choices out there that allow you to responsibly pilot your brood without losing cool points in the process.”

Meanwhile, no minivans made the list. In fact, the survey showed 70 percent of moms flatly refused to drive one of these quintessential “mom-mobiles.”

Not so fast, says Honda, which builds its Odyssey minivan here in Alabama. So far this year, Honda has sold nearly 40,000 Odysseys, a 4 percent improvement over last year.

The Odyssey currently ranks No. 3 in market share in its segment, behind the Dodge Caravan and the Chrysler Town & Country, which also have posted sales gains over 2013, according to Kelley Blue Book data.

So the bottom line is, some folks — moms included — really do like their minivans.

And the Odyssey in particular gets cool points for being driven by Indy racer Simon Pagenaud in the rigorous Pikes Peak International Hill Climb Race, said Honda spokeswoman Sara Pines.

“The Honda Odyssey is a mom’s best friend,” she said. “Smart and busy moms know the Odyssey gives them the ease of  power sliding doors, a power tailgate, a rear view camera, available ultra wide rear entertainment system, and the amazing HondaVAC built in vacuum — everything needed to juggle a typical day with kids in style and comfort.”

For all those moms out there that want and deserve a bit of luxury, why not treat yourself by hiring one of our luxury cars for the day.

Source http://www.al.com/business/index.ssf/2014/05/mothers_day_on_wheels_the_cool.html

 

Carmony to target the Luxury Car market

With the internet being the first place we all look for everything and anything, it is no surprise that companies are moving forward and making sure they cater for all potential clientele.

Carmony is an innovative company, owned by the same corporation as Motors.co.uk. Manheim Europe turn out some unique ideas about selling cars, and it is set to pay off for them, as Carmony begins its move into a unique position which could bring about a major change in the way we buy cars.

The people behind Carmony have identified that there is a certain type of customer which has been frozen out of online car sales, but who are these elusive customers? The company was established in 2008, and while it has remained one of the major car sales sites in the UK, it has yet to play the card which will set it apart from other car selling websites.

Like Autotrader, Carmony also contains daily news updates, encompassing new releases, worldwide events and breaking news about the world of auto trading. Like Arnoldclark.com, Carmony allows buyers to search for a suitable dealer or franchise, but unlike any other site in the UK, Carmony plans to put an emphasis on the sale of premium cars on the site.

Premium cars such as the Lexus and Audi will feature on the rebranded Carmony siteBrands such as Audi and Lexus, and cars worth more than £25,000, will feature on the site – and as all the cars for sale on Carmony are approved by dealers, buyers can rest assured that the car they have bought is of forecourt standard.

There is no shortage of cars on the website which will help buyers to find the right car for them, and sellers to offload their old motor – however, most of the market is for low-cost cars which are in an acceptable condition. People who buy cars online usually don’t expect to come away with a luxury product, meaning that there is a large section of the market which is not covered by any of the websites that sell cars, specific or otherwise.

If Carmony can be the first to begin putting high end clients in touch with dealers, or using the site to buy luxury cars directly, then it will put the company in a very powerful position.

That’s not to say that people who want to buy a middle of the range, or even very cheap car, can’t use Carmony. Carmony shows the minimum price for each type of car on the home page, and the price of a hatchback usually starts at around £500 – what’s great about this is that young people and students, or those who want to downsize, can get a dealer approved car at very reasonable prices.

Source http://swns.com/news/carmony-rebrands-to-target-luxury-car-market-48604/