The string of economic crises this year rocked buyers at the top and bottom of the segment (starting with 4 dollar a gallon gas prices and most recently with the collapse of the stock market).

The future for the large and generally healthy luxury car segment looked a little rocky in September. Sales of all new cars and trucks dropped 26.6 percent due to tight credit, ailing financial institutions and consumer concerns about the economy.

The luxury car segment has been anchored for years by affluent buyers who often pay cash for their cars and has maintained a growing number of wealthy buyers at the top as well as a broader, more rapidly expanding base at the bottom – buyers for “near-luxury” vehicles such as the C-class Mercedes-Benz.

Mercedes-Benz is no longer a doctor’s car. A lot of people can have a Mercedes, and that has exposed them to a greater array of problems when the economy goes bad.”

An adjustment in the luxury segment may have been brewing before the Wall Street meltdown.

AutoNation wouldn’t be spending money to upgrade some of its luxury dealerships if it had big concerns about the long-term health of the segment.

The addition of the 10,000-square-foot BMW of Dallas early next year, and the 12,000 foot Volvo showroom will fill the lineup of luxury brands along a two-mile stretch of Dallas luxury auto dealerships which include Audi, Aston Martin, Porsche, Mercedes-Benz, Maserati, Bentley, Rolls-Royce, Lexus, Cadillac, Infiniti, Saab and Hummer.

This might seem the wrong time to be investing in a high-end car dealership. As the economy continues to weaken, the auto industry is suffering through one of its worst years ever. Even luxury brands – once viewed as virtually recession-proof – are feeling some pain.

Most luxury auto dealerships see better times -ahead and contend that these times aren’t all that bad.
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It’s a challenging time to be in the industry but we build facilities for 20 years out, and you have to take the long view” says Ken Schnitzer of Dallas, who owns Porsche, Maserati, Bentley, Rolls-Royce and Mercedes-Benz dealerships.