Even without numbers, one can see that luxury utility vehicles are rapidly growing in popularity. In Canada, the luxury car market has grown by about 50,000 units since 2005, and most of those gains are specifically from the light truck luxury segment. Delving deeper into the specific numbers brings forward some surprising things.
In 2005, 135,464 vehicles were sold in the luxury segment. Fast forward to 2014 and that number has grown to 187,786 units. What is startling about these figures, is that 2 of the 3 passenger car luxury segments have dropped in that span. DesRosiers Automotive Consultants reports, "Indeed, of the approximately 50,000-unit gain in the luxury market in the past 10 years, more than 70 per cent is attributable to this one segment."
To put this trend in another way, light truck luxury vehicles accounted for 1 in 5 luxury vehicles in 2005. Light truck luxury vehicles account for half of luxury sales today.
Often times, a high demand for popular vehicles means that dealers are unlikely to offer discounts and incentives. Why do so when there is already sufficient demand to get them out the door without any discounts? In the case of today's light truck luxury segment, competition is so fierce between different brands that discounts are being used to keep competitive against the competition.
The 2015 Lincoln MKC, a brand new and popular model, is seeing discounts of nearly $3,000 thanks to Ford of Canada's Employee Pricing Program. Similarly, the Mercedes-Benz GLA is being discounted by about $3,000 as well. And those are brand new models.
Turn your gaze to models that are due for a redesign soon and you will find even bigger incentives. The BMW X1 is available with more than $4,000 in discounts. It also will be coming out with a redesigned model in Canada next year.
Want a huge discount? How about the Infiniti QX50 which can be found with as much as $6,000 knocked off its price.
It seems that now is the time to buy yourself the luxury CUV that you've always wanted because dealers and auto companies are having to compete hard for your dollars.