Trey Shores, 36, recently scored a fantastic deal. The Tokyo-based consultant scooped up an in-season Helmut Lang leather jacket in the city’s Ginza district for 50% off the regular price. What was an out-of-reach $2,000 became a more reasonable $1,000 “just like that,” says Shores. “I’m quite proud of [it].”
He’s certainly not the only consumer benefiting from the financial hardship of retailers. From clothing to travel to cars, companies are being forced to reduce prices at a never-before-seen clip as the global economy continues to shrink.
In January 2009, Mercedes-Benz offered customers a $6,000 discount on the 2009 CLK, while Cadillac knocked $8,000 off of its extravagant SUV, the 2009 Escalade. This month, Italian automaker Lamborghini is offering to subsidize the financing on its $1.5 million Reventon so potential buyers can avoid tight-credit banks.
“We’re definitely seeing automotive luxury players being a lot more generous with their incentives,” says Jessica Caldwell, an industry analyst at Santa Monica, Calif.-based auto data research firm Edmunds.com.
The incentives are also evident at the lower end of the luxury tier. Through the end of March, Volvo is offering $1,553 cash back on any 2009 model. This is in addition to the Swedish carmaker’s current loyalty incentive, in which customers can trade in an old Volvo, no matter how ancient, in exchange for guaranteed cash back on certain models. These deals also include free factory-scheduled maintenance and Volvo roadside assistance.
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