Bad press and lobbying from green groups against Sports Utility Vehicles (SUVs) and their driver have not affected sales, according to research by EurotaxGlass.
Richard Crossthwaite, Prestige Car Editor at EurotaxGlass said, "The prospect of new road taxes and suggested hikes in the congestion charge for SUV drivers is unlikely to have much impact on buyers who are already paying large amounts of money to purchase the vehicles ."
"While owners may have a concern about running costs, this is more likely to result in an ever-higher proportion of diesel models being sold compared to petrol, rather than a migration of buyers away from the sector as a whole," he added.
Sales of new prestige SUVs for the 11 months to December 2006 topped 51,667, an increase of 7%. In 2004 there were 43,103 sales, in 2005 there were 48,093 sales and last year there were 51,667 sales - an increase of 20% over the whole period.
There is little prospect of a dramatic fall in residual values within the prestige SUV segment, suggests Crosthwaite.
Residual values for this type of vehicle have come back from being the best in the market, down to more realistic levels.
"This is due to a higher number of used examples now available, something that will only be boosted by the arrival of more new models, such as the Audi Q7."
Crosthwaite adds, "People buy prestige SUVs for their desirability, as well as their perceived practicality and safety. Cost is not a critical issue in this segment. Despite the negative media coverage, there is still no other comparably desirable niche sector for these buyers to migrate into."
