'Global Recession Is Doom To Ultra Luxury Car Production'

Global Recession Is Doom To Ultra Luxury Car Production

By Community Director at 04/17/09 05:40

With the biting global recession, ultra luxury car manufacturers have been forced to cut back on production volumes following reports that millionaires and billionaires are cutting back on their expenditures. Recent reports of cutbacks by Lamborghini, Aston Martin, Rolls-Royce and Bentley attest to the ramifications of the global recession on the automotive industry.

Rolls-Royce announced an abandonment of their goal of sales growth and instead settled on the 2008 production volume of 1200 cars. With the expectation that sales may fall by 30% this year, Lamborghini is planning to manufacture only 1700 cars which is a far cry from the 2500 cars they produced last year.

As for Bentley and Aston Martin, they have already settled to production slowdowns. However, not all brands are experiencing a slow down in production and sales. For instance, Mercedes and BMW have improved on their sale volumes and Porsche is expected to halt its failing sales by releasing the Porsche Cayman and Porsche Boxster to the market.

Owing to these developments, what then should ultra luxury car lovers consider when buying a car during this period of global recession?

1. Research on all factors that affect the overall price of the car in question such as interest rates, fuel economy and loan terms.
2. When using a loan to finance the purchase, the length of the loan should be short unless you have been approved for 0% financing or if the interest rates are generally less than prime.
3. Longer loan terms should never be used to finance an ultra luxury car that is beyond your reach.
4. Due to the pinching global recession, whether you are a millionaire or a billionaire, you should increase the down payment.
5. Unless you are endowed with a good credit line, purchasing an ultra luxury car during recession should be out of the question.

 

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