Print
Email Story
KENNEWICK — Susan Petersen bought a 2007 Audi A4 convertible last week.
"I wanted something fun to drive -- sporty," said the retired Kennewick retail executive.
For years, she drove a sedan but was ready for a change -- even if it meant paying a little extra.
"You should always enjoy the fruits of your labor, enjoy life depending on your priorities and seasons in life," said Petersen, who paid $31,000. "I didn't feel like I was splurging a lot."
Sales of luxury vehicles -- new and used -- have improved nationwide this year compared with 2009, said auto analyst Jesse Toprak of TrueCar.com, a car-pricing website. "It's been a better-than-average improvement in the luxury vehicle segment."
He said increased consumer spending and recovery in the auto leasing market improved sales of luxury autos.
And Tri-City dealers report they're seeing the same trend.
More car buyers are realizing they can get great deals on high-end luxury vehicles, said Danny Archibald, co-owner of Archibald's, a Kennewick used-car dealership.
About 80 percent of his sales are luxury cars, he said, noting about 50 cars sold in July, mostly in the $25,000 to $40,000 range.
Overall car sales nationally declined in August from July, but Toprak called that a normal seasonal trend and predicts about 11.6 million vehicles will be sold, up from about 10.9 million in 2009, which was boosted a year ago by the Cash for Clunkers program.
Toprak said he expects sales of high-end autos to continue to grow in some smaller metro areas with relatively low unemployment rates and stable home values,
For its size, the Tri-Cities sells more Mercedes-Benz vehicles in the luxury car market than any other community in the western U.S., said Bill McCurley, president of McCurley Integrity Dealerships, which includes a Mercedes-Benz dealership in the Pasco Autoplex.
In the past 18 months or so, he has seen more sales of smaller Mercedes-Benz models.
McCurley, one of the top 10 Mercedes-Benz dealers in the U.S. in 2007 and 2008, is spending more than $1 million to develop an upscale "Autohaus" on Clearwater Avenue at the former Lithia Honda location he bought last year.
The move should be complete by the end of the year, he said. He plans to add Sprinter, a light commercial vehicle with a diesel engine, to his Mercedes-Benz line.
His forecast: Monthly sales of about 70 vehicles -- mostly luxury brands, new and used.
Luxury cars mean high-class machinery, solid performance and value for potential buyers, said Dale Ballas of North Bend, who recently bought a used BMW from Archibald's -- his third or fourth purchase there. "I trust them. They know what I want."
He said he bought a premium car for what he would have paid to buy an ordinary new car loaded with options.
Defining a luxury car is akin to defining beauty, auto experts say. The luxury car segment also includes sports and limited-edition exotic vehicles.
Nathan Merz, owner of Columbia Valley Luxury Cars in Richland, expects his sales to hit $5 million by year's end. Business has continued to grow since he opened three years ago.
The slow economy has helped create "aspirational customers" who want to drive in style rather than to just take care of their transportation needs, said Merz. He sells 15 cars a month to customers who come to him by referrals or the Internet.
Most customers love European brands such as Porsche, Ferrari, BMW, Mercedes and Audi, said Merz, who also is treasurer for the Rattle-snake chapter of BMW Car Club of America.
Tri-City buyers of luxury cars include working professionals and business owners, Tri-City dealers say. Their average age seems to range from 35 to 55, said Archibald.
The higher a vehicle's price, the older the buyer, said Doug Overturf, president of Overturf Motor Co. in Kennewick. He sells four or five new Audis every month on average. Audi's new Quattro models start in the mid-$30,000s, he said. "If we could get more (from the manufacturer), we could sell more."
The used Audi market, where prices may start at $18,000 to $20,000, is bigger, Overturf said. He sells eight to 10 used Audis a month.
The market remains competitive as ever because customers are doing a lot of research before checking out local car lots. Petersen and Ballas checked online prices and read car reviews before buying.
Ballas, a wholesale representative for HVAC systems, said used luxury autos are priced cheaper in the Tri-Cities because dealers are taking smaller margins and have lower overheads.
Merz and Archibald agreed. They also said running a small operation means they can talk personally with buyers and develop a relationship that brings back customers.
