Cars in L.A as an insight into poverty/wealth of residents (Los Angeles: sales, salon)

[jm1982]

I've lived in L.A my whole life, but have been spending a lot of time recently in South Florida for work.

I've noticed some differences between the cars there and the ones in L.A . Besides none of the cars having front license plates (which still seems weird) ... it seems like the general 'stock' of cars in the area is much newer. Just like the housing is a lot newer in general versus L.A it seems like there aren't the same really old (mostly Japanese) cars that you see rolling around the streets of L.A

Another thing is that while you see expensive cars, they really seem to stand out a lot more than they do in L.A. Ferraris seem to be more popular there though and many times with Canadian license plates

I am wondering if this gives some insight into the real poverty in L.A . Public transit seems to be a lot worse in South Florida versus L.A and it feels a lot more sprawling too. Also there are definately people without much money or poor in South Florida too.

Are their 'poor people' less poor and have more disposable income because they are spending a lot less on housing , sales tax and other things?

Perhaps it is related to the high number of undocumented people in L.A that likely couldn't qualify for a loan so they can only afford an ultra cheap car?

Just an idea , but I'm wondering if looking at cars gives insight into an area. The divide between the poor and rich in L.A is definately getting bigger, sand the middle class has been pushed out. So it does make sense that you would see so many luxury cars on the road next to old 'beater' cars on the roads.

Has anyone else spent time or come from other areas and noticed the difference between the mix of cars on the roads?

[BRinSM]

I've always noticed that when I leave LA I see a lot less BMWs and Mercedes on the roads. They are relatively cheap to lease for their entry level models, so they aren't much of a status symbol these days. Also, I make enough to afford a considerably nicer car than I actually drive and work with many folks who are in a similar situation, so for me personally, I am very hesitant to judge someone's financial situation by what they drive.

[goldenglory18]

Very interesting post (someone throwing a curveball into the city-data LA forum!)

My wife and I have a thing we call the "Car Test" here in Tucson. It's basically the measurement tool for whether or not we can afford an area, or whether or not it's a fit for us (I think you get the point without going into socioeconomic stereotypes and other issues.)

What I have noticed in LA though, is it's somewhat counter intuitive. Past the ultra rich types in the area, I'm guessing this is where the term "Car rich, house poor" came from. When one is in a car so much in Los Angeles, it makes sense (for some) to spend the majority of their disposable income on a nice, comfortable, well equipped vehicle. The point becomes even clearer when housing costs are so stupid high.

As for South Florida, being as I've never been there as an adult, it's hard for me to comment on it. But my first instinct immediately went to the housing crisis and how badly that area was hit (people financing out the wazoo for something that held no real value.) I wonder if that went from housing to autos over the last few years.

Originally Posted by BRinSM

… I make enough to afford a considerably nicer car than I actually drive and work with many folks who are in a similar situation, so for me personally, I am very hesitant to judge someone's financial situation by what they drive.

Likewise. We are a two car family, but I only see the need to have one “nice“ car at a time. Typically my wife drives that as she is a hair stylist at a fancy salon and likes to feel as if she fits in there, even though her paychecks may not reflect it. Whatever makes Mama happy… LOL

[jm1982]

BRinSM, I agree that one shouldn't judge others by their car. There are tons of millionaires driving around in older , nonflashy cars in L.A and other cities. Especially considering you can lease 'luxury' cars or get into them with little cash down they aren't good measures at all of ones wealth.

I remember reading in the millionaire next door that most millionaires don't drive luxury cars. .

That being said when you see someone driving an older car that is falling apart like many in L.A , you can usually tell when that person is struggling. Driving with damage , headlights out, bad bodywork, etc.

A frugal wealthy person generally would keep the car up and maintain it if they have the money as they realize it's a good investment to keep their older car in good shape.

---
goldenglory18, glad you like the idea of the post. I agree with you that many are "car rich and house poor" in L.A ..with housing costs so high, there are a lot of young people that think "the hell with it, since I can't buy ANYTHING in L.A ...not even a tiny condo...I'm just going to get a nice car and live at home" .

I used to know a girl that was making probably around $40k at her job, but bought a brand spanking new Audi. She also lived at home. I don't think this is a smart idea..because if you spend your money like that then you'll definately not have the downpayment for a property.

At the end of the day though, people have to make their own decisions about what they are comfortable spending on a car. Also some people might spend a lot on a car, but be frugal in other ways. Some people are also driving nice luxury cars that they may have bought a few years old for quite a bit less than the brand new models.

Another thing i'm wondering..with all the BMWs and Mercedes on the road in L.A ... does that translate to it being cheaper to maintain them than a place where they are less common? In many cities a BMW or Mercedes is exotic , but in L.A you are almost as likely to see them as you are a Honda or Toyota....so perhaps their are more places one can go to have them repaired. Just a thought.

[BayAreaHillbilly]

Originally Posted by jm1982

BRinSM, I agree that one shouldn't judge others by their car. There are tons of millionaires driving around in older , nonflashy cars in L.A and other cities. Especially considering you can lease 'luxury' cars or get into them with little cash down they aren't good measures at all of ones wealth.

I remember reading in the millionaire next door that most millionaires don't drive luxury cars. .

That being said when you see someone driving an older car that is falling apart like many in L.A , you can usually tell when that person is struggling. Driving with damage , headlights out, bad bodywork, etc.

A frugal wealthy person generally would keep the car up and maintain it if they have the money as they realize it's a good investment to keep their older car in good shape.

---
goldenglory18, glad you like the idea of the post. I agree with you that many are "car rich and house poor" in L.A ..with housing costs so high, there are a lot of young people that think "the hell with it, since I can't buy ANYTHING in L.A ...not even a tiny condo...I'm just going to get a nice car and live at home" .

I used to know a girl that was making probably around $40k at her job, but bought a brand spanking new Audi. She also lived at home. I don't think this is a smart idea..because if you spend your money like that then you'll definately not have the downpayment for a property.

At the end of the day though, people have to make their own decisions about what they are comfortable spending on a car. Also some people might spend a lot on a car, but be frugal in other ways. Some people are also driving nice luxury cars that they may have bought a few years old for quite a bit less than the brand new models.

Another thing i'm wondering..with all the BMWs and Mercedes on the road in L.A ... does that translate to it being cheaper to maintain them than a place where they are less common? In many cities a BMW or Mercedes is exotic , but in L.A you are almost as likely to see them as you are a Honda or Toyota....so perhaps their are more places one can go to have them repaired. Just a thought.

Even up here in the Bay Area I notice what the OP mentioned. Not everyone up here gets to ride the Google bus (or drive a Tesla). There are many working poor here (or not working, as the case may be).

[disgruntled la native]

Originally Posted by BRinSM

I've always noticed that when I leave LA I see a lot less BMWs and Mercedes on the roads. They are relatively cheap to lease for their entry level models, so they aren't much of a status symbol these days. Also, I make enough to afford a considerably nicer car than I actually drive and work with many folks who are in a similar situation, so for me personally, I am very hesitant to judge someone's financial situation by what they drive.

Yeah, leasing a C class mercedes or a 3 series BMW is very cheap. Not much more than your typical Japanese sedan.

Even E class mercedes won't set you back much.

Just because someone drives those cars doesn't mean they're rich at all.

When you get into something like a new S class or BMW 7 series I know there is some money there. That still doesn't mean multi-millionaire - they can be leased for an upper middle class salary. It's all about where your priorities lie.

Someone might prefer to spend 10k a year on a couple (or one) fancy vacation, someone else might prefer leasing an S class and showing it off.

[John_marts]

I remember the recent trip to SF I took, there were quite a bit more BMW's than Mercedes. In NJ its the opposite. Also a lot more of older european cars that simply do not last on the east coast. I saw plenty of E30 BMW's.

Thats good because BMW's>Mercedes any day.

[nightlysparrow]

Cars in Florida rust out. One reason you'll see newer cars there.

[MordinSolus]

Originally Posted by nightlysparrow

Cars in Florida rust out. One reason you'll see newer cars there.

This. Rust and just humidity in general are bad for cars. California is dry so cars last a lot longer.

[UB50]

Originally Posted by jm1982

I've noticed some differences between the cars there and the ones in L.A . Besides none of the cars having front license plates (which still seems weird) ... it seems like the general 'stock' of cars in the area is much newer. Just like the housing is a lot newer in general versus L.A it seems like there aren't the same really old (mostly Japanese) cars that you see rolling around the streets of L.A

I grew up in Florida and I can tell you why you don't see a lot of old cars.

Rust. They used to start rusting through in 4 years. Back in the late '70s, early '80s, car companies started to guarantee "no rust" with rust protection (Rustoleom?). The little addendum to that was that the guarantee was not in effect in Florida below Jacksonville. You simply can't stop the salt because it is in the air.

At one job I had, we were all talking about our rusty cars... One girl went to fill up her gas tank and the gas tank fell off. Another one actually put her foot through the floorboard of one car she had. It used to take about 3 or 4 years before the rust spots would start to develop on the bottom of the door panels.

Anyway, that's why you see old cars in California. The desert air doesn't contain salt. Salt and humidity will destroy the metal on a car, regardless what you use to protect it.