Luxury Car Deliveries Climb at Year End

 

 

 

 

 

 

 

 

 

 

 

U.S. consumers purchase more new luxury vehicles in December than in any other month of the year, according to monthly Polk new vehicle registration data.

This contrasts with the monthly tallies for the non-luxury space, where March and August are the peak months. Luxury registrations also rise in the spring, but not to the same degree as non-luxury deliveries; rather, luxury monthly sales climb from September through December, peaking at more than 10% (of annual results) at the end of the year (see table below).

Within the luxury category, SUVs and CUVs climb the highest at the end of the year, in some cases surpassing 11% of annual sales while high-end sporty cars, on the other hand, peak in May and June.

One driver of the year-end peak in luxury deliveries is the perennial competition among the three luxury leaders – BMW, Lexus and Mercedes-Benz – for luxury sales leadership. These three makes together account for almost half of all luxury registrations (48% September 2013 CYTD). Each of these brands has a December share of annual sales substantially above both the luxury and non-luxury averages, with BMW leading the way with 12%+. The competition among the two German makes should continue through December 31st of this year, as BMW leads Mercedes-Benz (less Sprinter) by only 9,772 units September CYTD.

Monthly tempo data can be used to efficiently plan dealer inventories as well as dealer and OEM incentive spending levels. The data are relevant not only for December, but for other months as well, including January when monthly deliveries drop by almost 50% from their December peaks for the leading luxury makes.

Category: General Update, Vehicles