How and why do people who aren’t actually well off pay for this stuff?

Debt usually. Either credit cards or buy now pay later through things like clearpay, klarna, very etc.

So many possibilities...

Fakes are a huge thing
Illicit income, from drug dealing, money laundering, selling duty free fags, "cash in hand" work, etc.
Benefit fraud
Tax evasion
Buying stolen/fake stuff
Saving money by not taxing/insurance their car

Then legal things such as

Maxing out credit cards and store cards
Remortgaging their house
Inheritances
"Gifts" from parents
Buying a "top end" car which looks good but in reality has 250k miles on the clock and was actually very cheap because of the W&T and high mileage

Oh, you’d be surprised.
Especially their children who are now having children, they are rebelling against the holy old jumpers and the clapped out Volvo they realise that they have money and they’d actually like to spend some of it. Can’t take it with you and all that.
And given that they’re having less children themselves, they’ve got less to pay out for in the long-term or pass on to
Like everybody else

If people really do have plenty of money, it just doesn't register with them that what they wear/handbag they carry will make an impression on someone.

I have a feeling you’re basing your experience on the nouveau riche of the upper middle class. Truly wealthy with nothing to prove do not bring the class to the gates to show off a Mercedes. Anything with an ostentatious logo, or made of polyester (clothing) is gauche.

I didn't realise that he "real" middle classes dressed so poorly.

I buy designer labels because I believe that they are better quality, will last longer and are vaguely in fashion.

I gave up buying clothes from charity shops when I stopped being a student.

Yes we’ve got a large blended family, being together was a priority for us but an expensive one as meant on our joint household not eligible for the financial support got previously and we needed a large house, which was quite a stretch financially but better than being over crowded. Yes otherwise we would have definitely gone for a smaller house and enjoyed holidays, other nicer things etc.

People buy what they buy. Many save. Many use credit. Same reason you see so many nice cars outside ugly houses - if you can’t afford a holiday in Barbados then you might instead get yourself a nice shirt.

I’ve worked in private schools and let me tell you they love their status. One mum asked me if I could cut short a lesson at lunchtime to bring my class to the front gate. It was Year 12 and close to lunch and we were intrigued.
And up rolls a truck with a new two seater Mercedes convertible for their 17 year old DC. She was mortified and the kids who were on scholarships felt uncomfortable.
The child in question burst into tears when she came in and stayed to talk to me - she had asked for a Ford Fiesta so she could pick up her friends in it.
I have lots of upper middle class friends (where I fit I’ve no idea) and I see them at play. It’s like a mini Kardashians - branded everything, girls using expensive skincare at 8, and not just Nike as a label Alo, Skims, expensive bags, it’s endless. They spend a fortune on their homes and holidays and believe me little Fenella and Tarquin are decked out in brands.
I do have a few middle class friends who don’t care and neither do their kids - yet they are rare to me.
And please don’t assume ‘the poor’ only want labels. I’ve seen it at the arse end, where they can’t afford basic uniforms and they are trying their best, often juggling several jobs.
Some people also love fashion - I have all my life. But I realised early doors that following trends isn’t needed so I left my wide legged jeans in the 90’s after I’d left them in the 70’s! I love them, but not in me.
It was interesting to see the Wales’ children yesterday in pics - very understated, although I spotted Adidas trainers on Charlotte.
By buying labels you just make the owners of those labels wealthy. Of course some are fantastic quality, but even brands like Chanel have been pulled over just how handmade their bags are now.
I do think places like Vinted and Vestaire are great because you can sell things on and also pick up a bargain.
If you are willing to be a season or so behind you can find some great pieces in the sales.
If it’s a classic coat it doesn’t really matter.
I wear things again and again I’ve never worn something once and binned it, that to me is such a waste.

My friend’s 23 year old daughter is living with her late 40s boyfriend. She showed me a photo and he is in a T shirt and cap both with LOEWE in the biggest possible letters. Tells me everything I need to know about someone who has got to that age and still feels the need to shout his status to the world around him. The T shirts are around £400.
I am sure he doesn’t care what I think though!
Most of us try and impress the people we want to be associated with.

Short-term gratification versus long-term gain though I think we’ve had this conversation repeatedly on Mum’s net for at least 35 years
Hard to see the benefit of one or two driving lessons if it takes 20 to pass a test and then you can’t afford a car all the Insurance at the end of it

Yeah that’s the other truth. No one wealthy is choosing a Chanel handbag over a skiing holiday because they’re taking both without even thinking twice.

or to lean into the favoured MN stereotype of the wealthy allowing their wealth to whisper by investing it and maxing out their pension that is all well covered

😂

This is such a grossly déclassé remark, I assume it must be satirical?

Worthy of a Hyacinth Bucket Award 🏅

To me, needing to 'prioritise' is a signifier of 'average middle' status. Wealthy people have no need to do that.

Yes that would have paid for 2 or 3 driving lessons

Oh I’m sure. I only know about Ferrari but the other super cars will do it too. Part of it will be because they don’t want the “wrong sort” driving their cars and the other will be that it will promote more brand loyalty because they’ve made the club!

It's not like the middle classes aren't deep in debt trying to keep up with a home in the right area, bedroom for all the kids, two holidays a year including one overseas, two nice cars, ballet classes and football...

Those items are aspirational for that sub-group. And impotantly it's an outward signal. It's a way of showing off success, and on a personal level a kind of indulgence which people enjoy. If you are at a certain income level, the next level up may look like a very expensive track suit. New money aesthetics.

Once you get to higher income levels, it begins to make more sense to put what extra money you have towards more long term goals, which will have their own visible outcomes. But there are aspirational signals at that level too. But they have to be different than the status items for the less well off. Those people don't want to look like they are aspiring to be new money, they want to dress in a low-key way with clothes from "classy" designers who don't need visible labels, and use Farrow & Ball, like someone up-thread suggested.

Then I suppose once you get to the tippy top of the pile - I don't know anyone like this - you don't need to do anything in particular to show you are there, everyone who needs to knows, and maybe the lack of signalling is the signal? You don't need designers then, you can just have what you need made or get it at the high street, who cares?

So the important thing is differentiating yourself from the people below. Though I don't think that's necessarily how people think of it, they just all enjoy having what they consider nice things.

It’s not embarrassing. It’s a reflection of feeling ostracised from the middle classes and is quite sad. We shouldn’t be proud of snobbishness.

We bring in £10k after tax, pensions, employee share schemes etc. We save 1/3rd, spend 1/3rd on bills and the other 1/3rd goes on holidays / eating out / one off bills / kids things etc.

We could save less and buy handbags, designer hoodies and other such shite etc but I’d rather retire at 55. I don’t think this is ‘Scrooge McDuck’ living as in no way would having a Gucci bag or Prada trainers add to my life.

You’re saying that through middle-class eyes. Most people within the demographic that OP is talking about don’t aspire to making money through investments, because it’s not even on their radar. It’s for “others” - rich people.

People generally aspire to what they see around them - “Keeping up with the Jones’s”. They aren’t living amongst bankers or crypto investors so there’s no pressure to emulate them. Nobody down their local pub is discussing the FTSE. They aspire to having a new item of clothing or pair of trainers which will make them feel a part of their tribe, be accepted, or appear attractive to a potential mate. It’s something small that’s within their reach.

I was going to say the same thing, anyone who thinks the wealthy don’t buy expensive clothes etc is delusional. It’s just that it is different brands that they use to signal to their own class that they belong, 1k Row jumpers, Khaite jeans, a Celine blazer. Maybe it is a bit less showy but just as easily identifiable to those that know. It’s just human nature

A few possibilities:

(1) You are in the top % of earners, but a lot of money goes into your mortgage and/or pension, which greatly decreases your disposable income. People from low income backgrounds may be spending money on luxuries, but they won't have house equity like yours and they won't have a pension like yours.

(2) You are wasting your money on silly things, like those weird "PCP" things that people use to buy cars. This is a massive wealth killer.

(3) People on low incomes are being foolish with money and using credit cards to buy luxury tracksuits. On a TV show once I saw a lower income household buying loads of luxury items, and using monthly payments to pay it off... not a good way to use money if you're struggling.

I think wealthy people prioritise things like education and travel, ski holidays etc and experiences.
Less well off prioritise 'stuff' and think that wearing brands is a status symbol. You often find they value stuff like huge TV's too, game consoles etc
Also as others have said a lot are fakes.... or in some cases stolen goods 😱