by Calculated Risk on 6/12/2008 05:08:00 PM

From Bloomberg: BMW Buyers in U.S. See a Ford in Their Future (hat tip James)

Purchases of luxury autos were down nearly 100,000 units, or 14 percent, through May 31, compared with an 8.4 percent drop in all U.S. sales.
...
``This gas panic has extended even to luxury buyers who are deciding they'd rather step down to a Ford with all the amenities rather than get a new Mercedes,'' said David Healy, an equity analyst with Burnham Securities Inc.

Gas prices have probably played a role, but I think the decline in MEW (mortgage equity withdrawal) is a more important factor in the decline in luxury car sales.

(see previous post on MEW)