The global recession that nearly shook the economy of the entire world to its very core, though has subsided and economies across the globe are on a rebound, yet in the U.S, one of the hardest hit sectors, the automobile market is still feeling the crunch of the recession. As per automotive information service, Edmunds.com, there has been a significant change in the spending habits of the U.S cat owners, as more and more customers are now leaning towards buying used cars, than invest in brand new wheels.

What many call, the ‘substitution effect’, this dramatic change in the spending trends has made a lot of automobile companies worried, as in addition to the used cars, these consumers are now letting go of their desires for high end brands, and seem to be satisfied with less flamboyant and less expensive brands. Shoppers are now rapidly putting off their plans to buy new cars those consumers who are in a desperate need to replace their vehicles are setting their eyes on less expensive used car lot. This new trend is quite apparent as Edmund.com itself has witnessed a surge of views on its used-car page, as against the new car page views. Some of the most established luxury car brands such as Audi, BMW, Cadillac, Infiniti, Jaguar, Lexus, Lincoln, Mercedes-Benz etc. have witnessed a slump in demand, as even the consumers who used to be an avid customer of these brands are now sighting products from Hyundai and KIA, that are not only luxury intensive, such as the Hyundai Genesis sedan, but are also considerably less expensive than the above mentioned brands.

Via Auto Observer