Comments on: Other Shoes Dropping http://timberry.bplans.com/2008/11/other-shoes-dropping.html Tim Berry on business planning, starting and growing your business, and having a life in the meantime Sat, 21 Nov 2009 17:26:20 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Joshua Clanton http://timberry.bplans.com/2008/11/other-shoes-dropping.html/comment-page-1#comment-384 Joshua Clanton Tue, 18 Nov 2008 03:33:26 +0000 http://timberry.bplans.com/2008/11/other-shoes-dropping.html#comment-384 <p>Interesting observation. I'd guess that this is because of the differences in the American and Mexican middle-class. In the US, luxury items are within the middle-class's reach, while in Mexico even economy cars may be a strain.</p> <p>In a downturn the middle-class cuts its largest expenditures. The result? American buyers shift to economy cars and Mexican buyers shift to used cars/no car. And since the people who buy luxury cars in Mexico are likely immune/resistant to economic pressure, sales of luxury cars remain steady.</p> Interesting observation. I'd guess that this is because of the differences in the American and Mexican middle-class. In the US, luxury items are within the middle-class's reach, while in Mexico even economy cars may be a strain.

In a downturn the middle-class cuts its largest expenditures. The result? American buyers shift to economy cars and Mexican buyers shift to used cars/no car. And since the people who buy luxury cars in Mexico are likely immune/resistant to economic pressure, sales of luxury cars remain steady.

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