Why do people on limited incomes choose upmarket cars?

[SirGawain]

Not really an AIBU, nor a criticism of peoples lifestyle choices, but I'm genuinely curious.
I live in an estate of mostly starter type homes built about thirty years ago. Many of the houses have been aquired peicemeal by different housing associations. The neigbours are generally very nice and most seem to be employed in decent, if not well paid, jobs.
As they are living in housing association properties I assume that they are not particulary affluent. What puzzles me is that the car of choice for many is a BMW or an Audi. Why would people spend there money on an expensive car which depreciates rather than investing it in a homes which will rise in value?

I changed my (clapped-out 15 year old) car for a brand new BMW this year. I didn’t need finance as was paying directly from my savings account.

The sales guy did an incredibly hard sell to get me to consider going for PCP. I wasn’t interested. He even calculated the monthly amount of pay if I went for a higher spec model (that I neither wanted nor needed). I asked him if many customers went for PCP and he said it was about 90%.

PCP is unregulated. I worry what will happen if the economy tanks, and all these financing companies look to call-in leases.

Car dealerships are now basically lenders. They’re keener to push a finance package than the car itself. When you see that, you have to start seeing that it’s too good to be true.

Perhaps it's a status thing?

I've heard it all now - not all cars are on lease / finance. Owning a BMW or Mercedes does not make you a chav. There are some really ignorant people posting on this thread.

Concentrate on your own life and stop being so bloody judgemental and ignorant.

limited income and limited intelligence are good bed partners.
A soft touch for the hard sell.

thanks @russianspambot :) if i come across any predictions i shall DM you! Otherwise, I guess we'll find out soon enough!

Zombie zombie zombie

The is an old thread for sure...
But Yes, I agree with OP. It's laughable how people seems to think better of themselves when they buy a "marque" car. A friend of 40 odd years recently purchased a 10yr old RR Sport, of course in the obligatory black with the "I'm a Celebrity" blacked out windows. It's cringing to see him swan about like he's some kind of billionaire tycoon.
I think Range Rovers have lost all the prestige they once held, now the vast majority are driven by chavs....
They are certainly status symbols, it states that the driver is probably a 10bob millionaire - lol

Makes me laugh everytime I see the dumb fucks

I haven’t RTWT but people on benefits can only save up to a certain amount before their benefits get docked so buy expensive items eg TVs and cars

I live in a HA property and I'm not poor

We have a new car every 9mths because its far, far cheaper to pay for the lease than than owning one. As for others maybe they lease, bought with savings, got a loan, who cares! They got an upmarket car because they wanted too, are you jealous of then OP

Thankfully HA tenancies don't have any clauses in them that means you are thrown out of you dare to earn more than minimum wage

We have a new car every 9mths because its far, far cheaper to pay for the lease than than owning one

I’d love to see your figures on that, short term leasing through the steepest part of the depreciation curve is massively expensive. Even a 3 year lease or PCP would likely be cheaper and a bank loan, buy outright and keep for 6 years or so cheaper still. The only way I can see it being cheaper is if you work for a manufacture.

I imagine it's cheaper if you never pay the big final payment but instead start another lease. In effect you never own the car, you're just perpetually renting one. However sooner or later the balloon payment will have to be paid, and that's when you find out the true cost.

Credit and keeping up with the jones’

They’ve probably got it on credit.

Or maybe they are car people but not house people.

I have a nice house and nice cars but I buy and sell classic cars for a living, if I had to choose between having a nice house and a nice car I’d choose the house and drive a banger

Lease, PCP, etc etc. Or part of the job. My neighbours probably think I'm minted when there's an brand new f type or RR parked up - it's not mine

thehobbit so can you stay in HA even when you earn enough to pay for mortgage?
Also would you not prefer to pay mortgage off so you have house paid off in time for retirement?

People who drive BMWs and Audi are usually unreasonable. So no yanbu. They're the people who park in disabled and child and parent bays without need (no badge/car seat) and park on the beach in the egotistic assumption that there is no way the tide would dare to touch their car!

I think this is the most cunty thing I've read on here in a long time!

I bought a brand new car a couple of years ago (a vw touran) it was 25 grand.

I wish I’d just got it on credit and then got a new one every couple of years because it’s only worth 13k now.

It you don’t want to lose money a car you need to buy something that’s going to increase in value instead of decrease, so modern classics, and you have to look after them. (I buy and sell classic cars)

I can’t believe all these comments about BMW’s and Audi’s loads of normal people drive them and you can get a bmw for a few grand if you’re not bothered about having the latest model.

I’d love a Range Rover but there’s not enough seats can’t stand the snobbery on here sometimes. It’s always the not rich lower middle class types who are the worst for it too

I have often wondered this. I rent my home and drive a Micra. In my same block you have many SUVs and Mercs and Bmws. Its not an affluent area but I have noticed that the inmigrants drive super cars as opposed to my 10 year old Micra. I suppose they see it as a sucess piece. Each to their own.

I know this is a zombie thread but...

SVRT are those damn immigrants not allowed a better car than you? How very dare they do something that only British born people should do

SVRT so as an immigrant which car would you like me to drive?

I don't own a BMW or Audi but I do live in a HA home. Dh and I both work full time but aren't well paid. We live in the SE. We will never be able to afford to buy a home, a 2 bed flat costs 10x our annual income. So we might as well spend our hard earned money on enjoying the life we have with nice cars, holidays, clothes etc. There's more to life then bricks and mortar

I live at the "respectable" end of a HA estate and my neighbours have the kind of cars you describe.
As pp have said, the economics of buying on finance is a bit different.
While it would cost a lot to get some of those models with cash up front, the monthly payments may be affordable.
A bit more than the bottom of the market perhaps but not so much of a stretch.
I think people at all income levels will like to have one or two things they consider a luxury, just because you can. And yes, part of that is affirming to yourself and others that you can afford to splash out.
At the very bottom it might be branded sportswear, bit further up a sky package and a nice car.
On Mumsnet you get a lot of talk about buying "experiences not things" which I've always felt is almost a next level status symbol.
It demonstrates that the person has so little difficulty supporting their material needs that they can afford to spend on the absolute ephemera of just having stuff happen to them.
(Anyone remember that chapter in Generation X- "bought experiences don't count")
Obviously there's cultural meaning to consumption and it doesn't always make sense outside of the context.
I could just as easily turn the question on its head and ask why the established middle class seem to spend so little money? Why do they deny themselves pleasures they could easily afford? Why do they seem to collect such large fixed costs and them complain about not having spending money left over? When are they deffering pleasure to, exactly?

I wish I’d just got it on credit and then got a new one every couple of years because it’s only worth 13k now.

But you’d be paying for the depreciation either way. The only advantage is that you wouldn’t have tied up so much capital. It would still probably have cost you £12k to rent a Touran for a couple of years