Why Going Downmarket Doesn't Hurt

With the ability to get into a new Audi, BMW or Mercedes for less than the average new car on the market there has been a lot of chatter of the German 3 dropping down. Whether through underboosted engines or through physically smaller models the cost of entry is under 30,000 for two of them and the other gives you a 5,000 discount. With such a seemingly low price point many have wondered if the brands are diluting themselves and their heritage and if their top of the line models are still special. While some of the media has called out the brands the consumer has paid little attention. Neither the recently introduced A3 sedan nor the earlier debut of the CLA has hurt either brand's sales of its top of the line models. The people that are buying the flagship Mercedes and Audi models costing over 100,000 aren't concerned that someone else can buy a Mercedes or an Audi for only 30,000. As long as they are getting a product with power, design and technology commensurate with the price of admission the existence of an entry level model won't bother them. Even for the few status conscious that do want to show off how much their car is worth there is little to worry as it isn't hard to see that an S class or an A8 retail for a quite a bit more than 30,000.

As with everything there are practical limits and thresholds that shouldn't be breached but so far both Audi and Mercedes have introduced a new model at the lower end of their spectrum without missing a beat at the top. The second round is coming right up as both are introducing the crossover version shortly.

Looking at Luxury Brands Selling Prices

There is always a lot of talk about which luxury brand is the best, which luxury brand sells the most, and which brands even deserve to be called luxury altogether. To clear up some of these questions let's take a look at the average selling prices of the biggest eleven brands that claim to sell luxury cars in the United States. While the manufacturers do not release their average transaction prices in the way that they do with overall sales figures here is our best attempt to see who gets the most for their cars on average. At the top is Mercedes-Benz with an average asking price of around 55,000 per vehicle. Mercedes has by far the most models available for sale in the 75,000+ range. Second is BMW which is able to average a little over 50,000 per every vehicle sold. BMW falls behind Mercedes by offering fewer models over 100,000. Up third is Cadillac that benefits greatly by moving a significant amount of its pricey Escalades every month. Following Cadillac is Audi that sells its models for comparable prices as Mercedes and BMW but moves fewer A6 models compared to the competition. Up next is Infiniti that charges around 45,000 on average followed closely by Lexus that loses ground because of a significant amount of ES sales. Lincoln is able to average a little over 40,000 thanks to Town Car and Navigator sales. Right around the 40,000 dollar cutoff Acura suffers by not having a true flagship sedan or having a coupe or convertible version of the TSX. Opening up the premium category Volvo lacks serious firepower without a V8 in its lineup. Second to last Buick is a great example of selling vehicles at a premium but not luxury prices. Bringing up the rear is Chrysler with a majority of its sales comprised by the 200 and the Town&Country minivan.

*The data represented below is an attempt to find out the average selling prices of the luxury brands based on their product mix. The figures are averaged based on sales, thus a brand selling more flagship sedans versus entry level models has a higher average price than a brand selling mostly entry level models. Because of lack of sales figures BMW's M lineup and Mercedes's AMG models were not factored in, thus those brands likely have slightly higher transaction prices than indicated here.

Mercedes-Benz Prices 2012 SLK and CLS

Mercedes-Benz announced pricing today for its redesigned 2012 SLK roadster and the 2012 CLS coupe line. The SLK350 will start at 55,675 while the CLS model line begins at 72,175 for the CLS550 and rises to 95,775 for the CLS63 AMG, including destination charges. Both the SLK and the CLS feature complete redesigns and new powertrains. The SLK350 features a new 302 horsepower direct-injected 3.5 liter V6 while the CLS lineup will be powered entirely by direct-injected biturbo V8 engines. The CLS550 uses a 402 horsepower 4.6 liter V8, the AMG version ups the ante with a 518 horsepower 5.5 liter V8. Both models also feature new styling with the SLK ditching its SLR inspired front styling of the previous generation in favor for one inspired by the SLS. The CLS features a more significant styling departure from the trend-setting design of the last CLS. The four door coupe now has bolder front end styling along with more pronounced design elements as seen on the current E-class.