Trends in Automotive Purchases: Economy is King
Although there has been some good economic news regarding lowering unemployment figures and numerous other factors of late, right now the long term trends for the automotive industry and the auto parts market along with it, are going to pretty much boil down to one fact. That is, the very large majority of automotive consumers will, it seems certain, be looking to stretch their dollars as far as possible for the foreseeable future.
This is by no means a disaster for the automotive parts industry and it’s positively fantastic news for consumers and automotive enthusiasts, who can look forward to more frequent bargains on such traditionally expensive items as high end aftermarket interiors, top of the line stereo systems, BMW wheels, spinning rims, and all the rest. Of course, many consumers will be eschewing all discretionary purchases, but that reality will be counterbalanced by the fact that just as many will also be delaying new car purchases. That means that the expense of simply maintaining automobiles will increase and more and more aftermarket purchases of all manner of automotive parts will need to be made, simply to keep cars running and useable.
Of course, a certain portion of the market continues to grow as wealthy consumers seem to have more money than ever to spend and very high priced purchases do continue, if perhaps with a little more caution and concern for appearances than before, as some “one percenters” may want to avoid any excessively obvious conspicuous consumption. In other words, BMW owners are going to purchase expensive aftermarket BMW wheels from time to time, but they may well choose to stay clear of fancy rims and spinners, assuming that they don’t happen to be successful hip-hop artists. High end stereo systems may also continue to be strong sellers as those items are relatively inexpensive and security on autos has improved to prevent theft. Also, a stereo system can’t be easily viewed from outside cars.
Another interesting trend for extremely wealthy car buyers in Manhattan and elsewhere was discussed in a recent piece in the New York Times. It seems that, rather than buying traditional limousines, some wealthy consumers are purchasing large vans and then extensively redesigning the interiors to create the equivalent of a traveling living room, replete with every luxury you can imagine. The advantage, again, is that there the consumption is less conspicuous than it might be. Still, of course, this kind of spending is going to remain the exception and very, very far from the rule for the foreseeable future.