BMW

traditional steering clamps are best way to beat modern thieves according to police

With the luxury car market booming, its time to brush up on your car security. Don’t become a victim and make sure you know the best ways to keep your car safe and secure.

Its security-conscious users may have been mocked as old-fashioned and out-of-date, but the simple steering lock is making a comeback as the best way to protect your car.

The gadget, which was popular in the late 1980s and early 90s, had been thought redundant in a world of on-board computers and vehicle security systems.

But police in London have said the simple technique of locking a bar to your steering wheel is one the best ways to outwit today’s sophisticated car thieves.

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Police say old-fashioning steering locks are the best way to beat technologically-savvy car thieves 
Police say old-fashioning steering locks are the best way to beat technologically-savvy car thieves

Officers in the wealthy borough of Kensington and Chelsea have alerted drivers of expensive supercars and 4x4s that criminals have worked out how to bypass their in-built alarms.

To reduce the chance of these luxury cars being stolen, the Metropolitan Police sent letters to owners urging them to go back to basics.

The letter warns specific motorists their vehicle ‘may be at heightened risk of being stolen’.

It adds: ‘Expensive vehicles, including Range Rovers, Land Rovers and BMW X5 series and X6 series, in particular have been targeted.

HOW DO MODERN THIEVES USE IN-CAR COMPUTERS TO STEAL?

1. Pick out luxury car that uses an RF fob.

2. Get inside the car without triggering the alarm – or simply smash window.

3. Press start/stop button on dashboard.

4. Plug small computer device into the On-Board Diagnostic (OBD) port.

5. Program new key fob, using the settings to toggle car make, e.g. Audi, BMW, etc.

6. Add new chip to key fob, which after a few seconds is activated to respond to car.

7. Press start/stop button again and car engine will start.

‘Having gained access, any vehicle security systems have been bypassed and the vehicle in most cases driven away.

‘It is recommended therefore that you consider additional means of securing your vehicle such as through the use of a simple steering wheel or gear stick lock, which are effective in preventing theft of your vehicle.’

One motorist, who was sent the Met Police letter, has expressed shock that his expensive cars offer insufficient protection.

Simon Gregg, a property developer who owns two Range Rovers, said: ‘Cars without keys are particularly vulnerable and all new Range Rovers have keyless go.

‘One person I have spoken to says 26 Range Rovers have been stolen in recent months from central London.

Resdients in exclusive parts of London, such as Chelsea (pictured) are said to be most at risk from thieves

 

The BMW X5, which start at around £45,000, was one of the cars highlighted as at risk by the Met Police

The BMW X5, which start at around £45,000, was one of the cars highlighted as at risk by the Met Police

‘I know a BMW X5 was stolen on my road recently and a friend had their Land Rover Discovery stolen. Both were keyless. Manufacturers have a problem with this crime, but they are not bothering to tell people.

‘It has got to the point now that people are going to Halfords and buying a steering lock because it will act as a better deterrent.’

In recent years, car thieves have become more and more audacious, smashing non-alarmed car windows and then connecting a special device to the vehicle’s diagnostic system.

SIMPLE TECHNOLOGY – WHO INVENTED THE STEERING LOCK?

One of the first steering locks was called ‘The Club’ and was invented by American James E Winner in 1986.

It is believed Mr Winner got the idea from his time serving in the Korean War, when he and fellow soldiers were told to secure vehicles’ steering wheels with chains.

His traditional lock was made of two bars, each with a hook to attach to the steering wheel.

An early television advert for the device showed a would-be thief hammering at the bar for several minutes without managing to dislodge it.

The firm’s slogan was: ‘If you can’t steer it, you can’t steal it.’

They then reprogramme a blank key and it immediately works on the car – allowing them to drive away without any alarms going off.

It is estimated almost half the cars stolen in London use keyless technology.

Land Rover yesterday acknowledged that premium cars were being stolen but defended its security systems.

A statement from the manufacturer said: ‘The current Land Rover line-up continues to meet the insurance industry requirements as tested and agreed with relevant insurance bodies.

‘Nevertheless, the company has taken this issue very seriously and our engineering teams have been working in collaboration with insurance bodies and police forces to fully understand the risks.

‘It is however important to remember that this is an industry-wide issue.’

Source: http://www.dailymail.co.uk/news/article-2699733/Unfashionable-effective-Police-tell-luxury-car-owners-traditional-steering-clamps-best-way-beat-modern-thieves.html#ixzz38BIYPzxk

Luxury cars worth over £150,000 have been stolen from the same area

Living in a wealthy area has many perks, but one downside is that you could be targeted by thieves who want to take advantage of the whole area.

Luxury vehicles worth more than £150,000 have been stolen from properties in Lanarkshire.

Jaguar, Audi and BMW vehicles were among the ten stolen between Wednesday and Friday in the Lanarkshire area.

Many of the thefts were the result of thieves breaking into houses through back doors and windows and taking the car keys.

Vehicles included a Range Rover Sport, a Mini, an Audi Q7, a BMW Z4 and a Jaguar XF Sport.

The Range Rover was stolen from the car park of the Hilton Hotel, in Strathclyde Business Park, after thieves forced open a locker within the hotel and took the keys.

Police Scotland are appealing for information and witnesses and have launched an investigation into the thefts.

They say they are at the “early stages” of their inquiry but it is thought the thefts are linked.

Officers have urged people to take extra care not to leave their car keys on display and have also appealed for any car buyers or dealerships who may have been offered any of the vehicles for sale to contact them.

Properties targeted already have been in Dunellan Way and Dunellan Place in Moodiesburn, Lochearnhead Road in Stepps, Princess Gate in Bothwell, Oak Fern Drive in East Kilbride, Ettrick Street in Wishaw and Dunnock Place, Coatbridge.

Sergeant Ross Aitken said: “I would like to remind householders to be mindful as to where they keep both their house and car keys, particularly overnight.

“Please do not leave them near your front or back doors or windows where thieves can easily see them and reach them, please keep them hidden away – don’t give thieves a helping hand to steal your hard earned possessions.

“I’d also like to remind householders to ensure that they keep their home as secure as possible. If you have window locks, use them – particularly if you are leaving the property or retiring for the evening. The same goes for your car.”

Source http://news.stv.tv/west-central/281578-over-150000-worth-of-luxury-cars-stolen-by-thieves-in-lanarkshire/

BMW to invest $1 Billion in Mexico plant

A few weeks ago we told you about luxury car makers opening up show rooms in poorer countries. Rolls Royce have moved into Cambodia as the market for luxury cars grows. This week we are hearing that BMW have invested a vast amount of money in building a plant in Mexico.

BMW revealed a $1 billion Mexican plant investment on Thursday, becoming the latest major automaker to take advantage of the country’s growing industrial base and tariff-free access to the US market.

 
BMW outlined plans to build a factory in the central Mexican city of San Luis Potosi, reducing the German company’s dependence on higher-cost plants at home.
 
The plant will begin assembling models in 2019 with an initial workforce of 1,500 and annual production capacity of 150,000 vehicles, the company said.
 
“Mexico is an ideal location for the BMW Group,” production chief Harald Krueger said in a statement. “We are continuing our strategy of ‘production follows the market.'”
 
Germany’s luxury car makers – BMW, Audi and Mercedes-Benz – are expanding overseas as their domestic plants struggle to meet strong demand for new vehicle offerings in the United States and Asia.
 
“With this investment, Mexico is stepping up to premium-level production of global vehicles,” Mexican Economy Minister Ildefonso Guajardo said as the plant was announced.
 
BMW did not reveal what type of vehicle it will build, and a spokeswoman for the company said no decision had been made. But several Mexican and European officials at the presentation said they believed the plant would produce 3 Series cars.
 
“At some point I heard that they were talking about the 3 Series,” Guajardo told reporters after the event. “But I don’t have the official confirmation.”
 
Guajardo added that at least one other big auto investment would be announced this summer but did not elaborate. Reuters reported last month that Kia Motors Corp. plans to break ground soon on a new plant in Mexico.
 
Mexico’s auto sector is gaining critical mass as more global brands open production lines, boosting the supplier network.
 
BMW’s move comes days after Daimler announced new Mercedes production in Mexico with partner Nissan Motor Co. Ltd., which already operates two plants in the country where it had recently increased capacity.
 
“The premium brands are finally realizing that Mexico has the capacity to build signature vehicles,” IHS Automotive analyst Guido Vildozo said.
 
“We are going to see all these plants starting with one or two products at the very beginning, but they will gradually become critical pillars of profitability for the premium manufacturers,” he added.
 
Mexico benefits from tariff-free exports to the United States as well as Europe, while its factories are beyond the reach of the United Auto Workers union, which has been struggling to boost its influence in the US South.
 
BMW’s investment comes amid a domestic industrial cost review that has some German unions worried about their longer-term outlook, as the company reduces reliance on sluggish European markets that still account for 44 percent of sales.
 
The plant also increases BMW’s bet on the United States, which is the world’s largest luxury-car market along with China.
 
In March, BMW announced a $1 billion investment to expand capacity by 50 percent at its plant in Spartanburg, South Carolina, where it builds a range of sport utility vehicles.
Source http://www.gmanetwork.com/news/story/368671/economy/business/bmw-s-1-billion-plant-surfs-mexican-investment-wave

Ex-Lomond boss Hugh McMahon buys dealership in Edinburgh

Motor industry entrepreneur Hugh McMahon has bought Murray Motor Group’s Rolls Royce and Aston Martin business in Edinburgh.

Partnered by son Chris, the former Lomond Audi owner has taken over the luxury car dealership in a buy-out worth more than of £3 million. The deal was funded by Barclays’ Scottish corporate banking team.

Hugh McMahon has spent a lifetime in the motor trade starting out as a technician at the age of 16 before moving into sales – then management. He sold the Lomond Audi business in July 2012 and has been looking for a suitable enterprise since.

The Sighthill outlet is the sole authorised dealership for the luxury car brands in Scotland. The business currently turns over £20 million annually and the father-and-son team have plans to grow this to £30 million in the medium term.

Hugh McMahon said: ‘There is a strong opportunity to grow sales of both brands which are moving into an exciting stage of their development – Rolls Royce is celebrating 10 years under the ownership of the BMW Group and Aston Martin has been rejuvenated by new investment.’

Working with son Chris, who is operations director for the business and Brian Ritchie, finance director, Hugh also has plans to expand the dealership’s offering of luxury and performance used cars.

He added: ‘Our first priority, however, is to consolidate our existing position. We have taken over a good business but I want to make it a great business – for customers and employees.’

Source http://cardealermagazine.co.uk/publish/luxury-car-dealership-changes-hands-3m-buyout/82750

The most popular pre-owned luxury cars

We can’t all afford to drive a luxury car off the forecourt, but buying second hand luxury cars is becoming more popular than ever
Used luxury cars offer a fantastic driving experience at an unbeatable price. Cartrade.com’s Vinay Sanghi picks out the hottest pre-owned models in the market.
Mercedes-Benz C-Class
The German car brand has always ranked high in terms of premium car comfort. The Mercedes-Benz C-Class offers an efficient engine that delivers impressive performance.
Diesel engines from Mercedes are also known to be low on emissions and great on technology, thereby making them strong contenders among the German cars. On the other hand, the petrol trims illustrate great dynamics without being heavy on the pocket.
Many drivers also feel nostalgic about the brand since it was the first premium brand to enter India in a commercial way.
Audi A4
Audi’s entry-level sedan, the A4, has made a strong impact in the premium D segment of sedans being sold in the country. The ‘‘design meets performance” theme has been successful in luring many customers towards it. It is the strongest selling car in its segment.
The A4 wins hearts with its sharp German design that flows across the body and blends with mesmerizing interiors that are loaded with the latest in gadgetry. Audi offers a range of petrol and diesel options on the A4.
The company claims that these engines can withstand any sort of driving conditions and yet deliver efficient mileage—reasons that have worked greatly in favour of the A4.
BMW 3 Series
photo

The other two German car makers have always concentrated on making cars that feel nice, but it was BMW that managed to introduce real performance in the segment. BMW brought excitement in this class. It is often perceived a Beemer is the serious enthusiast’s car.

Shark-eyed looks with compact dimensions make the 3 Series a killer proposition. The 3 Series is bound to impress people of all ages with its performance. It is the quickest to ride and offers the most precise driving conditions. Apart from being high on performance, BMW also ensures that these cars are equally safe with amazing driver aid options available in the 3 Series.
Jaguar XF
The only British player in an otherwise all-German battle, Jaguar is all about the flamboyant individual. The gorgeous styling and uber-luxurious interiors make even casual drivers go weak in the knees.
More than a point A to point B commute, Jaguars are all about making a style statement. If the German cars exude performance, the Jaguars reflect an art and culture aesthetic.
Jaguars are not just meant to impress with their beauty though—the exhilarating performance is paired with a smooth, addictive power train that keeps drivers hooked.
Who is buying these cars?
The upwardly mobile Indian middle class is increasingly exploring the ‘‘affordable” pre-owned luxury four-wheeler.
These are typically business-class people who already own a new Rs.15-20 lakh car and are now looking to buy a luxury car for status. It has aspirational value.
The average price of a new entry-level luxury car ranges anywhere between Rs.30 lakh and Rs.50 lakh, while the same used cars command a price of around Rs.17-25 lakh. Which is quite affordable for this new set of emerging buyers who want to enjoy these cars but don’t want to spend as much.
Source http://www.livemint.com/Leisure/tzniAgWR2mk5A4AcUsDRwL/The-hottest-preowned-luxury-cars.html

Luxury cars are looking to overtake pickups in the American market

Buyers in America are more likely to purchase luxury cars over other more traditional brands of choice. Drivers are clamouring for BMWs , Audis, and Infinitis this year, buying plush vehicles at a far faster pace than other cars or even the traditional favourite Ford F-150.

In the first five months of the year, luxury automakers sold almost 66,000 more vehicles in the U.S. than they did a year earlier, an 11 percent increase. Lincoln and Lexus in particular were stomping on the sales pedal. Sales of midsize cars such as the Honda Accord—the biggest segment of the U.S. market—slipped 3.6 percent, while truck sales—another huge chunk of the market—were up 4.6 percent.

Why are so many U.S. buyers springing for an opulent car? A relatively robust stock market helps, as does an improving overall economy. But there’s something far more interesting going on. A lot of Americans aren’t really buying new BMWs and Benzes after all; they’re renting them—or leasing, to be specific.

Leasing now accounts for a bigger share of auto sales than ever, according to Bloomberg Industries analyst Kevin Tynan. Consumers are feeling fairly flush but are still spooked about taking on large amounts of debt, Tynan says. What’s more, resale values are up, so companies are offering better leasing terms, confident that the vehicle will still be worth a tidy sum when the agreement runs its course.

Luxury drivers are more likely to lease than those to choose less pricey vehicles. About half of the Mercedes  sedans rolling off of lots these days are leased, compared with 13 percent of big trucks like the Chevy  Silverado.

For those who want to buy, it’s gotten easier to be a luxury car owner. Mercedes is now selling its CLA for about $30,000. (It doesn’t have the company’s famed rear-wheel drive, but it does have the logo on the hood.) Audi is making a similar play with its new A3, and BMW is shifting down-market as well with its 2 Series. Not surprisingly, aggregate sticker prices for the luxury segment aren’t nearly as high as they were last year.

So the car-buying process now includes a socioeconomic strategy question. Namely, is a starter Mercedes or a run-of-the-mill Lincoln more luxurious than a Mazda  or a Ford Fusion with all the extras? That’s for drivers (and their neighbours) to decide.

Source http://www.businessweek.com/articles/2014-06-23/bmws-and-other-luxury-cars-leave-pickups-in-the-dust

Who will win the luxury car race BMW or Audi?

BMW held onto the lead in global luxury-car sales as demand for 5-Series sedans and X5 sport-utility vehicles helped edge out Audi AG.

BMW delivered about 1,000 more vehicles than Volkswagen AG (VOW)’s Audi in May as the race for the top spot tightened, according to figures from the carmakers. Through the first five months of 2014, Audi’s sales climbed 12 percent, outpacing BMW’s 11 percent gain. That helped the world’s second-largest maker of premium cars cut Munich-based BMW’s lead to about 8,200 autos from 11,000 a year ago.

Audi has been closing the gap to BMW in recent years with an expanded model line-up in a bid to become the best-selling luxury-auto brand by the end of the decade. In April, the VW unit rolled out a sedan version of the A3 in the U.S., helping sales there jump 26 percent last month. BMW responded with the 2-Series compact coupe, which went on sale in March.

“BMW is more geared into the second half and into 2015” in terms of model introductions, Arndt Ellinghorst, an analyst at ISI Group in London, said by phone. “They report stronger growth right now than I would have thought, given the product outline.”

Deliveries last month of BMW autos rose 10 percent to 153,023 vehicles, as 5-Series sales gained 11 percent and X5 demand surged 63 percent. Including the Mini and Rolls-Royce brands, sales rose 6.8 percent last month, with five-month demand increasing 7.4 percent to just under 826,900 deliveries.

Delivery Target

“The BMW group continued to achieve record sales in May, keeping us well on track to sell over 2 million vehicles in 2014,” Ian Robertson, head of sales and marketing, said in a statement today.

Global sales by Ingolstadt, Germany-based Audi climbed 11 percent to 152,000 cars in May, lifted by a 43 percent surge for A3 models and a 21 percent gain in demand for the Q3 compact SUV. Daimler AG (DAI)’s Mercedes-Benz, which also has a target of overtaking BMW in sales by the end of this decade, increased deliveries 10 percent in May to 134,031, buoyed by demand for the C-Class sedan and GLA compact SUV.

BMW declined as much as 1.1 percent and was trading down 0.6 percent at 92.02 euros at 12:59 p.m. in Frankfurt. VW fell 0.3 percent, while Daimler rose 0.3 percent.

Chinese Push

Surging demand for premium models in China and the U.S., the world’s two largest auto markets, is propelling growth at the three German carmakers, which are all targeting record deliveries for 2014. The competition is heating up after Audi briefly passed the BMW brand in sales at the beginning of this year, while new compact models have generated gains at Mercedes.

The five-month sales lead by BMW over Mercedes was about 80,700 vehicles, narrowing from a year-earlier difference of 88,300 autos. BMW introduced the plug-in hybrid i8 last week, its first sports car in more than three decades. In addition to the 4-Series coupe and X4 SUV already on sale, BMW plans to introduce a variant of the 2-Series, the van-like Active Tourer, this year.

BMW is likely to remain ahead of Audi in deliveries through 2015, said Ellinghorst. Even so, a race among the luxury-car makers to maintain volume at the expense of pricing is undermining profitability and brand perception.

“All these guys are defining themselves by volume and not by price realization,” he said. “You can’t call yourself a premium brand if you give away your product with a 20 percent to 30 percent discount.”

Source http://www.bloomberg.com/news/2014-06-10/bmw-holds-off-audi-as-race-for-luxury-car-lead-tightens.html

Luxury car growth is never ending in North America

Luxury Car growth world wide is going from strength to strength with some promising figures already emerging for 2014. North America are not alone in their appreciation of luxury and style, but here lets take a look at who is performing well in the States.

U.S. auto sales turned out to have an incredible month of sales in May. The news was good almost universally (except for the VW brand), but the luxury car market just seems to have no end in sight in North America. What we have not done was to break out sales prices and incentives in the luxury market as a whole.

What is obvious is that the luxury market just keeps on chugging higher and higher once you look at the sales data.

Can some of this be attributed to new model launches? In some cases. Still, the numbers just look strong by almost every account. We took a look at North American sales of Porsche, BMW, Audi, Mercedes, Jaguar, and Land Rover for the month of May. Even the used luxury market looked strong when the companies discussed it.

Porsche said that its May sales of 4,609 vehicles was bumped by the mid-May launch of the 2015 Macan S and Macan Turbo (1,263 units). Porsche said that this beats last year’s record sales number by 17.3 percent. It was also the best ever sales month for Porsche in the U.S. Porsche even went on to say that its two-door sports cars and Panamera have continued strong sales performance gains from 2013, and that the demand for Cayenne still outstrips the supply. Porsche even went on to say that its Approved Certified Pre-Owned vehicle sales in May were up 17 percent at 994 units.

Mercedes-Benz said that May was the company’s fifth record sales month Of 2014, with its Mercedes-Benz brand sales up 7.7% to 26,617 units. Total sales were represented as being up over 8% to 29,570 units if you blend the Mercedes-Benz, Sprinter and smart model lines. The group’s top sellers in May were its C-, E- and M-Class model lines, with the E-Class up over 25 percent to 6,168 vehicles. Its high-end flagship S-Class volume of 2,173 was up over 82% from the same month last year.

BMW Group U.S. also posted a record May for its BMW brand, in part from the launch of the BMW i3. BMW and MINI combined sales in May were up over 13% to 35,331 vehicles, but sales of BMW brand vehicles rose by more than 17 percent in May for a total of 29,602 vehicles. The BMW i3 has now officially launched, with its first month’s sales totaling 336 units. BMW Pre-Owned Vehicles also rose by 14 percent to 18,064 vehicles. Management even talked up this summer –

“This will be the summer of BMW with the new M3 and M4 on sale this month and the new X4 and 4 Series Gran Coupe coming in July.”

Audi said that this was its best U.S. May sales in the company’s history, and second-best any-month tally period – with it being the 41st consecutive U.S. sales record. Its sales rose to 16,601 powered both by the new entry-level model, A3, and by the brand’s high-end cars. Diesels accounted for 11.5% to 28.2% of sales.

Jaguar and Land Rover have shown that May sales rose 17 percent, to 5,840 units (according to USA Today) – for the best May unit sales report since 2007. The Range Rover Sport redesign had record May sales of 1,496 units for a gain of 35 percent. Sale of the crossover Range Rover Evoque rose a sharp 59 percent to 1,196 sales. Jaguar sales were up 14% in May, led by its F-series sports car coupe and convertible and by the XK sedan.

Source Is There No End to Luxury Car Sales Growth in America? – 24/7 Wall St. http://247wallst.com/autos/2014/06/03/is-there-no-end-to-luxury-car-sales-growth-in-america/#ixzz33khuqNoI

Teenagers steal luxury cars in a ‘Gone in 60 Seconds’ type raid

Like something out of a Hollywood block buster, a gang of teenagers have pled guilty to stealing luxury cars from the home of a millionaire.

Liam Smith, George Cowie and Blair Thomson, all 17, took off with sports cars from outside oil tycoon Sean Dreelan’s mansion in July.

Two of the teenagers – Cowie and Thomson – broke into the Banchory Devenick property and stole car keys – despite being too young to drive at the time.

The trio then drove away with the motors in the middle of the night.

Renovation work was being carried out on the grounds of Drumduan House as part of a major refurbishment programme at the time.

The secluded house was once protected by extensive security with intercom-operated large iron double gates at the bottom of the drive and CCTV cameras.

However, the driveway was opened last summer to let heavy machinery in to carry out landscaping work.

Family photographs shared on social media showed several super cars parked on the driveway – including a red Ferrari 599 GTO – before the thefts.

All the stolen vehicles were recovered and police eventually tracked down the car crime gang, who all lived in Aberdeen.

Yesterday Smith was told by the sheriff to expect a jail term for his part in the thefts when the case called at Aberdeen Sheriff Court.

Sheriff Graeme Napier said: “You shouldn’t hold out much hope for anything other than a custodial sentence.”

Smith admitted stealing the Dreelan family’s white 2010 Porsche 911 GT2 RS coupe and grey Toyota Land Cruiser from outside Drumduan House, between 22 and 23 July, last year.

Donald Stewart
Sean Dreelan

 

 

The teenage thief also admitted stealing two other vehicles in separate incidents in the weeks leading up to the Dreelan family theft.

He pled guilty to nicking a grey 2006 BMW M sport touring estate from Lintmill Place, Aberdeen, on May 25, 2013.

The teen also admitted careless driving by crashing a red Triumph motorcycle he stole from the city’s Taransay Crescent on June 20.

Cowie previously pleaded guilty to breaking into Mr Dreelan’s home between July 22 and 23 and stealing car keys before making off with a grey 2010 Audi S5 V8 Quattro coupe.

Thomson was also part of the gang that broke into Mr Dreelan’s house to steal car keys.

He made off from the grounds of the mansion with a silver 2011 Aston Martin Rapide V12 as well as the same Toyota Land Cruiser as Smith.

Sheriff Napier called for reports on all three teenagers yesterday and deferred sentencing until next month.

Property owner Sean Dreelan made his fortune in the oil and energy industry in Aberdeen.

He and his three brothers – Tommy, Mike and Ciaran – founded a fast-growing oil service firm in 2001.

The oil services company was sold to Norwegian group Aker Solutions earning the brothers a share of nearly 100million pounds in 2008.

The Dreelan brothers continued in their roles with Qserv as it expanded worldwide, despite the change of ownership.

The sale of Qserv was the second big-money deal involving the Dreelans.

PSL was sold by Tommy, Sean and Mike for 45.5million pounds in 1998.

Source http://www.dailyrecord.co.uk/news/crime/gone-60-seconds-teenage-car-3617496

 

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/