Luxury buyers are ditching the badge for better value
TDT | agencies
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Luxury car buyers in the US are increasingly switching to mainstream brands, finding that they can get much of the technology, comfort and features they want without paying a premium for the badge.
A new J.D. Power study points to a growing challenge for brands such as Mercedes-Benz, BMW and Audi, which are already facing competition from Tesla and Chinese automakers.
The shift comes as affordability becomes a bigger factor in car-buying decisions. Buyers can now find mainstream models offering features once associated mainly with luxury vehicles, making it harder for premium brands to justify their higher prices.
Premium brands are now averaging discounts of about 7.3% of a vehicle's sticker price, compared with around 6% for mainstream brands.
For luxury carmakers, the message is clear: buyers may still want luxury — but they are becoming less willing to pay simply for the badge, especially when mainstream brands now offer similar levels of technology, comfort and features at a much lower price.
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