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Old 09-15-2011, 03:52 PM
 
Location: Chicago
4,172 posts, read 4,715,776 times
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Quote:
Originally Posted by djmilf View Post
I think that one reason why people can afford $50K vehicles is because the economic hard times aren't really felt by your boss's boss and your boss's boss's boss. Many in the upper tier are actually do quite well for themselves.
Yes, this is why many luxury brands and higher end stores are still doing quite well now.
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Old 09-15-2011, 04:03 PM
 
Location: Chicago
4,172 posts, read 4,715,776 times
Reputation: 4291
Quote:
Originally Posted by user_id View Post
Luxury cars are just status symbols, the people that buy them feel some need to make others think they have money. Ironically, its usually low net-worth individuals that buy them....
Or, they are higher net-worth individuals who find the luxury car has features that make it safer, easier, or more enjoyable to drive and they could care less what others think of them.
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Old 09-15-2011, 05:56 PM
 
Location: Conejo Valley, CA
12,350 posts, read 10,661,380 times
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Quote:
Originally Posted by SpeedyAZ View Post
Not "that much money"? I make a decent salary but an average 36 month lease on a vehicle of that price with no money down would still be about $1300-$1400/ MONTH! That's a big chunk of income to pay towards a vehicle each month.
Right...not that much money....as in one doesn't need to be rich to afford it.

Quote:
Originally Posted by SpeedyAZ View Post
The ones who drive the $90K-$100K S-Classes at my work are the top-level bosses and executives. I know three individuals who have an S550 here and I guarantee each is making over $200K/ year.
Sure, how else would they let everyone below them in the company know that they are better than them? But think about this, this is no different than someone with a $65k income buying a C-class. In both cases its for status and its financially stupid....

Quote:
Originally Posted by SpeedyAZ View Post
I'd also take issue with what you say about low net-worth individuals buying luxury cars. You'd almost have to break it up into demographics.
Demographics really don't change much, sure older folks are likely to have higher income/wealth all things equal, but they over-extend themselves just the same. Most upper-middle class folks with high incomes have little wealth, they are spenders.

If you see someone driving a S-class Mercedes (or similar car) they are far more likely to be a big spender with little wealth than someone who is rich. After all, you don't get rich by spending......
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Old 09-15-2011, 06:01 PM
 
Location: Pasadena
1,285 posts, read 1,862,588 times
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Quote:
Originally Posted by user_id View Post
Sure, how else would they let everyone below them in the company know that they are better than them? But think about this, this is no different than someone with a $65k income buying a C-class. In both cases its for status and its financially stupid....
The loss of earnings due to an accident from a less safe car, for certain people, far outweighs the increased cost over a lower end vehicle.

Not to mention money has no utility to you once you are dead.

An 80k car is much nicer than a 20k car, that's for sure. And it's more safe. And one's self staying in good health is extremely important to future earnings ability.
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Old 09-15-2011, 06:05 PM
 
5,748 posts, read 7,318,101 times
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Quote:
Originally Posted by drshang View Post
The loss of earnings due to an accident from a less safe car, for certain people, far outweighs the increased cost over a lower end vehicle.

Not to mention money has no utility to you once you are dead.

An 80k car is much nicer than a 20k car, that's for sure. And it's more safe. And one's self staying in good health is extremely important to future earnings ability.
If your goal is to stay alive, you're much better off not driving at all and taking public transportation or walking wherever you need to go.

I don't think one needs to drive an $80k vehicle to be reasonably safe on the road. I've seen plenty of expensive, newer cars with bald tires. That's much more a safety-hazard than driving a 12-year-old Honda that has been properly maintained.
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Old 09-15-2011, 06:08 PM
 
Location: Pasadena
1,285 posts, read 1,862,588 times
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Quote:
Originally Posted by formercalifornian View Post
If your goal is to stay alive, you're much better off not driving at all and taking public transportation or walking wherever you need to go.
Yes, because it makes lots of sense for high net worth individuals to stand around waiting for buses instead of doing economically productive things that produce money and value.
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Old 09-15-2011, 06:11 PM
 
5,748 posts, read 7,318,101 times
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Quote:
Originally Posted by drshang View Post
Yes, because it makes lots of sense for high net worth individuals to stand around waiting for buses instead of doing economically productive things that produce money and value.
Sweetheart, my spouse rides a a very nice train to work, which qualifies as public transportation. He used to walk or ride his bike to work when his office was less than a mile away. He loved it! And we definitely qualify as high net-worth, but that's beside the point.

Last edited by formercalifornian; 09-15-2011 at 06:23 PM.. Reason: typo
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Old 09-15-2011, 06:12 PM
 
Location: Conejo Valley, CA
12,350 posts, read 10,661,380 times
Reputation: 4075
Quote:
Originally Posted by drshang View Post
The loss of earnings due to an accident from a less safe car, for certain people, far outweighs the increased cost over a lower end vehicle.
Who would those certain people be? The top .001% of society?

But this isn't even a real issue, once you get out of budget cars the cost of the car has little correlation with safety.

Quote:
Originally Posted by drshang View Post
An 80k car is much nicer than a 20k car, that's for sure. And it's more safe.
You can easily find a $20k car that is safer than a $80k car. Indeed, many of the expensive cars are sports cars that are less safe than modest cars that are 1/4 the cost.

Much nicer under what metric? Is it 4 times as nice? No...the $80k car is a Veblen good.....people buy them because they are displays of status not because they are "nicer".
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Old 09-15-2011, 06:17 PM
 
Location: Conejo Valley, CA
12,350 posts, read 10,661,380 times
Reputation: 4075
Quote:
Originally Posted by GoCUBS1 View Post
Or, they are higher net-worth individuals who find the luxury car has features that make it safer, easier, or more enjoyable to drive and they could care less what others think of them.
People buy luxury cars precisely because what others think of them...that is the basis of the entire market.
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Old 09-15-2011, 06:18 PM
 
Location: Pasadena
1,285 posts, read 1,862,588 times
Reputation: 1207
Quote:
Originally Posted by formercalifornian View Post
Sweetheart, my spouse rides a a very nice train to work, which qualifies as public transportation, and gets paid very well to do it. He used to walk or ride his bike to work when his office was less than a mile away. He loved it! And we definitely qualify as a high net-worth, but that's beside the point.
Cool...but I doubt he's taking the bus to close a major deal when driving takes 2 hours less time. Public transportation can make sense and tons of people who are very wealthy take it. But they are very largely only doing it when it makes sense, and won't spend 3 hours on a train when they can drive in 45 minutes because "it's safer."
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