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Reply to ""luxury" cars - why? "

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Why would someone buy a 70-150k car when a 35k car gets you around just fine? Seems like a waste to me. I have a friend who just bought a Mercedes and I don't think k I could bring myself to do it. I know everyone's values are different but if I got a raise, I would go on vacation and save some. [/quote]

Psst: here's a little secret

Ready?

Some people can afford it

For many people in the DMV, 35k is a weekly income. Not really worth cheaping out then is it[/quote]

According to this 2014 NYTimes article, the median income of a luxury car owner is less than 100K.

It is certainly not those earning $1M+/year that are driving luxury car sales.[/quote]

All the market research I've read suggests it's more around 750

I'm sorry (not really) but consumption rises with income. Income elasticity of demand. Fundamental principle of economics.[/quote]

Here's the [url=https://www.nytimes.com/2014/11/19/your-money/in-sales-of-luxuries-geography-matters-.html]link[/url], and an excerpt from the article.  I think what some are puzzling over is why luxury cars sell so well to people with relatively modest incomes.

[quote]Luxury automakers from Audi to Mercedes-Benz reported record sales last year. Their vehicles made up more than one million of the 16 million sold in the United States in 2013, adding to the millions of older luxury vehicles already speeding along America’s highways.

So the question is, Who is buying all those very expensive cars? Perhaps surprisingly, the answer in many cases is people who are not all that well off, especially when regional income differences are taken into account.

In data prepared for The New York Times, Kantar Media TGI, a market research firm, found that the income reported by people buying luxury goods — not just cars, but designer kitchen appliances and luxury vacations, too — was not particularly high compared with the price of these goods, and that purchases of specific luxury goods varied considerably by region.

The median annual income of a luxury car owner in the United States, for example, is $99,364, while a Mercedes C-Class sedan, the carmaker’s entry-level vehicle and its most popular model, starts at around $40,000.[/quote][/quote]

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