The $100,000 Family Car - WSJ

[question everything]

Mitchell Leit thought his silvery green Bentley coupe would be the envy of the neighborhood, with its hand-buffed walnut interior, muscular 12-cylinder engine and $150,000 price tag. But looming large in the rear-view mirror is a crowd of mass-market rivals, including Audis and BMWs for $120,000 -- and even a $140,000 Ford. "Suddenly," says the 60-year-old Los Angeles real-estate broker, "the Bentley is a mid-priced car."

The auto industry has just put a new sticker price on luxury: $100,000. After a period of rolling out ever-cheaper entry-level models -- Mercedes' new Smart SUV will cost around $20,000 -- many mainstream car makers are pushing models at prices unheard of even a few years ago. For 2004, the number of models selling for $100,000 to $200,000 in the U.S. zoomed to 17 from nine last year. Audi just rolled out its first car in the price range, BMW is working on its second, and Mercedes now has eight models in the segment, up from three in 2002. A few months ago Volkswagen crossed the barrier with its $102,000 420-horsepower Phaeton sedan.

(snip)

So what do you get for a hundred grand? The $123,000 Mercedes S600 has a powerful 493-horsepower engine, but it looks very similar to a model that costs $75,000. Other models share parts with downmarket cousins: Bentley's $150,000 Continental GT shares chassis parts with an Audi A8 that costs about half as much. The Volkswagen Phaeton has a self-closing trunk and massaging back seats, but its hood ornament looks like the one on a VW Bug. In most cases, these cars are production-line models designed for everyday use, not handmade "supercar" collectibles that can cost a quarter of a million dollars and can even appreciate in value.


The biggest selling point for these cars is power. Though they may look like family sedans, most have engines with 400 horsepower or more. That's about double the level of most passenger cars, and it translates to faster acceleration and higher top speeds (assuming anyone would want to drag-race a four-door, five-passenger Audi A8 L 6.0). Perks include heated steering wheels, adjustable cabin humidity and a "tunnel mode" that closes all the windows and vents at the press of a button to protect the owner's sensitive nose. On top BMWs, the rear seats can heat up, cool down and be adjusted 10 ways. An air-conditioned cubby hole in the armrest can keep a candy bar from melting on a hot day.

(snip)

[TheMightyFavog]

1. Hell

Don't air conditioned glove boxes come standard on MINIs?

[kdmorris]

2. Good Heavens!!

I paid that much for my HOUSE!! My mind boggles at spending that much for a vehicle. It really does!!

[private_ryan]

13. on a related story

people keep borrowing with no f-ing idea on how to pay back.

[Droopy]

3. Sheeyut

Even if I were wealthy enough to buy one of those cars I wouldn't do it. What a waste.

[Lorien]

4. Consumer waste and decadence

seems to have reached new levels of absurdity and stupidity. Truly vehicles for those with more money than brains!

[kodi]

5. big car = small penis

.

[Demonaut]

8. what about a small porsche?

[ian]

6. But can you get a tax deduction for it too?

I mean, really? Why not???

[Rex]

7. Who the hell is able to buy a car for that price?

And do they have a daughter? :evilgrin:

[ClintonTyree]

9. The people.........

that benefited from Bush's tax cuts. Isn't it strange that the disparity between rich and poor has widened? It's those Bush tax cuts at work folks.

[question everything]

12. I read someplace about the hour-glass shape of the economy

Something about the increase of the upper and lower classes while the middle get squeezed.

[private_ryan]

15. it's a status thing

some people get caught into it. They might not a penny saved for retirement, but they have to have a car just a good as his neighbors.

[theoceansnerves]

10. hmm

i used to love my golf dearly, but $100,000 for a vw? who are they kidding?

[midnight armadillo]

11. vw strategy

VW is trying to take the 'People's Car' upmarket in search of higher profit margins. Exactly what this means for Audi, the VW owned luxury brand, is not entirely clear. Hence the Phaeton and 12-cyl Passat...

[ScreamingMeemie]

14. ...and we thought we were being obnoxious by spending $22,000

for the minivan. ;) It has power locks and child safety doors!!!

[JanMichael]

16. The Revolution will NOT be televised. Avarice be damned.

:-)