Affordable luxury from well- known European luxury car makers

Luxury car makers such as Audi, BMW and Mercedes-Benz known for expensive vehicles are trying to cut into affordable car market and compete with models made by Ford, Chrysler and others. Compare $26,000 plus Ford Taurus and $30,000 plus Chrysler 300 to $30,000 plus CLA sedan from Mercedes-Benz. Who wouldn’t want to pay the price of a Ford to buy a Mercedes-Benz?

Soon to be released Audi A3 sedan comes with a suggested retail price of $29,900. Mercedes-Benz’s CLA came out with a similar price in September 2013 and data indicates that it enjoys a strong selling. It helped Mercedes-Benz come on top of all luxury models sold in the US in 2013. BMW is expected to introduce its 2 Series in March 2014 with a starting price around $33,000.

Upscale car market in the US accounts for about 19 percent of total vehicles sold. With help from rapidly expanding affordable models from luxury car makers, it is expected to climb to 24 percent market share by 2018. Affordable luxury is not limited to cars and European makers are also hoping to introduce entry level SUV crossovers soon. Mercedes-Benz will introduce a new GLA in 2014 and BMW’s X1 appears to be selling well in the US.