Automakers offering high-end holiday gifts

“Our inventory numbers indicate a very strong selection of new cars, so the key factor this year is for those dealerships to have a lot of those red, white and green bows in stock, because that can be a deal-killer if customers want the car and a big bow,” he added jokingly.

Holiday-themed ad campaigns are also key to boosting an automaker’s sales in December, helping them clear dealers’ lots and post a few more sales before the end of the fiscal year.

Arguably, the automaker best known for its holiday ad blitz is Toyota Motor Corp.’s Lexus division, which each year floods the airwaves with images of shiny new cars decorated with big bows, Taylor said.

Greg Thome, a spokesman for Lexus, said the company started its “December to Remember” holiday ad campaign in 1995 and added the trademark bows in 1998.

“People almost expect to see the ads every year, from an annual television standpoint,” Thome said. “Just like the Coca-Cola polar bears, they expect to see the Lexus ads as well.”

Thome said the annual ad campaign, coupled with some of the company’s steepest sales incentives of the year, are in response to an increased demand for the company’s vehicles during the holiday season.

Although it’s not possible to quantify the effect of the ad campaign on Lexus sales, Thome said December sales have beat company projections for the past six years.

Customer service also plays a role, he said. Just like in the commercials, Lexus dealerships will deliver a car to the receiving person’s house, complete with a big bow on top, Thome said.

While some people do chose to buy vehicles as gifts, or to take advantage of certain end-of-the-year tax benefits, many less affluent shoppers end up deciding to postpone their purchases until January, or even spring, said Jack Nerad, executive market analyst for Kelley Blue Book.

MORE ON HOLIDAY BONUSES Goldman breaks Wall Street bonus record Holiday bonuses flooding New York City Automakers offering high-end holiday gifts Forbes: Why your bonus is a goose egg   Video: Santa has been good to big bosses   Video: Have exec bonuses gone too far? Vote: How much is your year-end bonus?   Sound off: Do you get an annual bonus?

“Generally, December is not a good month for typical car dealers,” Nerad said. “People are spending their money on other things and realizing how poor they are.

“Auto manufacturers take two different paths in December. Some will add incentives to boost sales and others will simply sit the month out,” he added.

As for Taines, he thinks luxury cars may have replaced diamonds when it comes to luxury gift-giving.

“You want to give somebody very special something very special just for them and a Rolls-Royce is just that,” he said.

MORE FROM AUTOS

Autos Section Front

Will Toyota's zero-percent offer attract buyers? Auto dealers feel pain of credit crunch Ford kicks off production of new F-150 Paris Motor Show opens amid crisis Ford expects another tough year in 2009 September worst auto sales month since 1993 Analysts say Big 3 need loans quickly GM plans $370M engine plant in Flint, Mich. Wagoner: GM OK with $25B  loan package Auto industry to get $25B in federal loans Autos Section Front   Add Autos headlines to your news reader: