As the global economy continues to boom, so too does the demand for high-end luxury vehicles.
As the price of new cars continues to rise, so does demand for old-style cars.
But with the growing number of cars that don’t even break the $150,000 mark, buyers are increasingly turning to low-volume models to satisfy their needs.
“The trend is to go low-price, to go for low-end, to stay at a low price point, which is a classic trend that we see all the time,” said John D. Johnson, president of Johnson Capital Markets in New York.
“So that’s why we’re seeing a lot of people wanting low-cost, high-quality cars that they can actually get to work and play and go to the movies and be at home with their kids.”
In this photo, a Toyota RAV4 is shown in the dealership.
(Photo: Mark Lennihan, AP)One of the key factors behind this trend is the shift to an all-electric vehicle market.
In the past, cars like the Volkswagen Golf, Audi A4 and BMW 3 Series all sold for under $40,000, and those vehicles are still considered the most popular models for low cost and performance.
Now, however, with the advent of electric vehicles like the Nissan Leaf and Tesla Model 3, those vehicles have sold for upwards of $60,000.
“We’re seeing an all electric market, but the Tesla Model S is going to be the one that will be the biggest hit,” said D.J. Johnson.
When it comes to performance, the Nissan Model S has become a hit among the best in the world.
The new Leaf is also popular among the top performers in the sporty and upscale markets.
Even the BMW 3-Series and Audi A8 are seeing demand for these models.
And while the Volkswagen Polo and Audi Q7 are the most affordable cars in the industry, they are also the most expensive.
While a lot has changed in the last 15 years, one thing that hasn’t changed is the value of an old car.
“The price of an older car is always going to have a very high premium to it, because you can’t buy something that is as good as it was 15 years ago,” said Richard Johnson, a managing director at Kelley Blue Book.
“And that means it’s going to get very expensive.
And you’re going to see lots of people looking for that kind of car, because they’re getting very good deals.”
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