Why do so many middle class people purchase luxury cars? (best, sell)
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Nobody seems to get all crazy if you spend $25k on a new Camry but spend half that on a used luxosled and the financial gurus come out to tell you how stupid you are. But really, how many folks real enjoy driving a Toyota?
I was at a thrift store looking for items for some sideline ebay stock, and a woman approached me and asked me why I was shopping there with a car like that. I told her I can drive a car like this because I shop here.
nothing wrong with buying used cars (especially luxury cars) and nothing wrong with thrift store shopping. Recycle/reuse. Someone has to fully utilize the merchandise thrown out by the new age slaves.
nothing wrong with buying used cars (especially luxury cars) and nothing wrong with thrift store shopping. Recycle/reuse. Someone has to fully utilize the merchandise thrown out by the new age slaves.
I guess the good thing is that a lot of luxury cars depreciate quite badly. You can find 4-5 year old BMW 7 series sedans in the $40K range in nice shape. Maintenance costs are still there though.
It's interesting that if one spends $45k on a Ford, nobody thinks that they have gone financially insane on a middle-class income, but if one spends $35k on an Audi or BMW, they are a $30k millionaire who is pretentious. Even an economy car, like a Ford Focus can cost $35k in the top trim, but it's a hot hatch, and would not carry assumptions about the owner's financial decisions because it's a Ford.
Somebody who spends $50k on a Ford crossover that they plan to keep for four or five years is actually spending more than if they were to buy a BMW at the same price point because the BMW comes with four years of scheduled maintenance included, as do some other premium marques. Compared to a $50k Acura or Lexus, the Ford will generally retain less value when it comes time to trade or sell, and the Acura and Lexus tend to score higher in terms of reliability, overall. They do not cost more to own and maintain for the projected 4-5 year ownership period that many have, and a Lexus at 15-years-old will tend not to cost as much to own as that Ford. Compare an Explorer Limited to a Lexus RX from circa 2000, and the Lexus is a much less expensive and more reliable vehicle to have owned over the period.
There's also a difference between premium and luxury. A Rolls-Royce Phantom is ultra luxury, an S-Class is luxury as is an A8, but a garden variety A4 or CLA are premium vehicles. There are quite a few luxury marques at my Costco, too, and many premium vehicles as well. One of my parents' neighbors drives her Phantom everywhere, including to the drive thru for her coffee, because she loves the car, and I highly doubt that she's making payments on it. A friend of mine was looking at a mid-size sedan recently, and wanted my advice, so we looked at a Ford Fusion, and then I showed her that she could actually get a CPO Acura TL SH-AWD for less than the Ford, with less than 20k miles on the Acura. The projected resale would be greater on the used Acura at the end of her proposed ownership term, based upon her usage of the vehicle, etc., so the premium vehicle will cost less than the mainstream vehicle for her. Similarly, a friend of mine bought a CPO Lexus LS that costs less to own than some non-luxury marques. It's all relative, and as long as I'm not being asked to pay for someone else's choices, why do I care what they do with their money?
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It's interesting that if one spends $45k on a Ford, nobody thinks that they have gone financially insane on a middle-class income, but if one spends $35k on an Audi or BMW, they are a $30k millionaire who is pretentious.
The problem with any euro car is the running costs after the warranty is up. A perfect example would be BMW bread and butter entry-level 3 series. In the 80’s you could buy a 3 series and the car was built like a tank for its pint size. The running costs were reasonable and the car never really fell apart. It seems that everything since has been a lease engineered special that was designed to last just long enough to make it out of CPO warranty status before hitting the buy here pay here lot or the junkyard.
The running costs of a typical domestic don’t even compare.
If you had to save for your nice car for 13 years, you cannot afford it.
If they saved for 13 years because they didn't have a car payment were just using their vehicle, what's the problem? Maybe they only save 50 bucks a month and they used their money for other things. Maybe they saved over $100K and only spent $25K on a new vehicle. What's it to you? It's not your money. So what are you worried about? Really, it's no one's business what other people's finances are. I could be poor and homeless or a multimillionaire. Either way, it's not your concern.
I live in a trailer park and some neighbors have BMW 3 series, Mercedes C class, Cadillac CTS, and some large trucks like Ford F-250. They weren't bought brand new. The only brand new vehicle purchases I've seen here is my Hyundai Elantra and my co-worker's Chevy Sonic. The most expensive new vehicle purchase here is a retired couple who bought the new Camry. Not hard for middle class families to buy near lux or luxury vehicles at end of the year close out sales or nearly new vehicles that were leased. They could get a luxury vehicle for the price of a new family sedan.
I haven't bought a new car since I was 23, and have not had a car payment since I was 26. That was in the early '70's. Didn't buy my house, vacation condo, sailboat or Class A motorhome new either. And paid cash for all. No, I am not rich, I am frugal, and always have been. I also know how to deal, and wait for deals. Most people have made more than I did most of their lives, but man, they sure spent a ton more also.
I pay cash for my cars, drive them usually until repairs don't make sense anymore, and then sell them. There are some wonderful deals out there with the penchant for more and more equipped vehicles. I can't ever remember paying more than $10,000 for one. The last one I just bought was last month, a 2011 Escape, leather, heated seats, sun roof etc. with only 65,000 miles on it. A wonderful vehicle, that only will need new tires in another year or so. Why would I buy new?
Good for you. We're all not you. I don't like buying used vehicles. I've been burned too many times. When the repairs each month are far more than a car loan, it doesn't make sense to keep an old run down thing going.
I drive a great deal. I live in the country and it's not like I can hop a bus when things breakdown. I travel great distances - across many states at a time. I want the safety and security of a new vehicle. I also need towing capacity and specific space/configuration for my dogs. We all have different needs and wants. That's why there are so many vehicles out there!
They could get a luxury vehicle for the price of a new family sedan.
I think they call that ghetto rich. There's a good number of people that buy used up luxury cars for the price of a gently used Honda Civic only to find they can't afford to fix them if something major happens.
50K is extremely expensive for a car. The problem is most people have been brainwashed by consumerism, and actually think that the vehicle you drive matters. Anyone who listens to mass media is bombarded by this filth everyday.
Maybe to you $50K is extremely expensive for a car. It's not to everyone. It has nothing to do with being brainwashed. Some of us actually use our vehicles for work, play, and family. I couldn't do my job with a Smart Car. It's not physically possible. I need a large SUV or decent size pick up. There are no other options for me.
I don't give a flying fart what others drive. It's none of my business. There's an elderly gentlemen I see riding around on a scooter every so often. i say good for him! Might be all he needs. Might be all he can afford. Might be his thing. Might be able to handle a car anymore. Might not want to give up his independence. Good for him! Hope he's happy and safe.
I don't care about what think about my vehicle. I didn't buy it so others could drool, be envious, make comments, etc. I'm not in high school. I've got real problems in life to deal with. I buy what I need or want. I don't care what others buy or drive.
To many people the car they drive makes a statement. I had a friend that only drove Cadillacs and Lincolns because where he was from (middle class/blue collar town) owning such said people had arrived. I understood his mentality though I disagreed with it. He could never afford a new one so he drove used ones. I once said I would rather buy a new car for less money then drive a used anything. Maybe that was my way of saying I had arrived as I only drive new cars, not used ones.
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