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?

You don’t have to faff about with MOTs for a few years with a new car and if there is anything wrong with them they are still under warranty. Plus, the ‘prestige’ brands aren’t as expensive as you think on lease.

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!

@PositivelyPERF, I just bought my first new ( well 25,000 on the odometer) car in 10 years. It ain’t a BMW or Audi but it’s what we could afford. I do wish someone would rock up and ask why we bought a new car when we clearly need a new roof, new chimney, painting, landscaping..

What is your definition of a ‘decent’ job?

Kaniel has it right.

Buying outright with a lump sum is hard. My local Nissan offers a car with a small down payment and the under £200 for a brand new car. Okay so it’s not Audi or BMW (nobody owns one of those in my HA street) but it’s a new car which is going to be reliable and not have loads of repairs needed.

thethoughtfox
There is a difference between wanting to demonstrate not being poor and wanting to project an affluent lifestyle.

I've been skint and driven around in a 13 year old banger falling apart. But I had a car and I had a roof over my head and I was able to look presentable. I shopped around, made my money go further etc. I didn't need an Audi to try and pretend I was rich.

That's why I always think that sometimes there is an increasing obsession with people (across different levels of wealth) with wanting to appear more affluent than they are through having status products.

I don't recall anyone where I grew up (average working class area) driving a BMW. I see it now though in areas where I grew up.
I do see friends on middle incomes like mine opting to live in cheaper accommodation, but have expensive handbags, regular holidays, expensive cars. We earn approximately the same. Their lifestyle looks a lot more affluent. It's about appearances.

Lots of them are on finance and leases - it's just embarrassing

How long does it take to save a 10% deposit of say £30,000? How much will a bank lend you on that? Because that 10% deposit means a £300k house so you’d borrow £270k which means your salary would need to be around £80k.

That car isn’t so extravagant now is it!

It's a big status symbol, even unconsciously. The second biggest purchase most people make. Stands to reason that they would like to tell the world something about how they see themselves. Just another form of tribalism. We humans are interesting liken that!

Did you read any of the posts giving you potential answers OP?

huggy why are you embarrassed about other people’s finances and choices?

Why is it anyone's business and nobody knows the complete financial situation of others unless they've seen their bank statements. Stereotyping isn't very clever either

I've got a crappy old car, do I have to provide my income and expenditure for you OP so you can decide if I deserve it or should have changed it for a new car? Like seriously, how rude are you?

I think some people just like cars. I couldn't care less about what car we have but I'm particular about other things in my life. Maybe they just like Audis or BMWs I don't think there has to be some deep, philosophical reason behind everything.

Have you never been poor?
Yes I have been very poor. I was brought up in a large family and spent my first 25 years in a council house and the next 25 with a morgage. But I never felt the need for status symbols.
As I said I am not critcising anyone for their life style choices.

Grilled

I'm talking about those people who go around boasting that they have a BMW, Merc whatever when actually they don't actually own it. You must know the sort I mean!

Because they want to.

So huggy why is that embarrassing?
Their choices are noting to do with you.

I think a lot of them are on finance or lease schemes

Personally, I avoid debt at all costs so I drive a 10 year old Vauxhall Corsa that I could afford to buy outright from my savings rather than have a monthly payment but I guess some people prefer to have a better car, personal choice I guess

Car financing is the next bubble to burst. The amount of people who owe a disproportionate amount of finance compared to their income is terrifying.

Because for them it's a status symbol. The same way that women I know who of who live on benefits have Botox and lip fillers and their children dressed in fake and stolen designer clothes. It's all for show.

You know the reason why.
We are a consumerist nation, and all of us are pressured to conform to certain expectations.
People judge us on and change their behaviour towards us on so much.

Most of us won't even be aware it's happening - until something happens in your life and your status changes. People will make a whole new set of value judgments on you.

The 'car' is one of society's biggest status symbols. As is a home, but the car is usually the most visible high-value status symbol we'll ever own (in terms of number of people who see it / price).

Of course reliability and safety are big factors, but car manufacturers and more importantly marketing teams know precisely which buttons to press to pander to our egos.
I can't speak for everybody, of course I can't, but 'as a whole', we are very image conscious with cars. Most of Western Europe is. It's so much more than utilitarian.

People aspire to be more successful and their car is one of their methods to signal that to the rest of the world. They'll overstretch their finances to give that signal.

I know quite a few people with company cars and they always seem to be Audis or Mercs

Different people, different choices which is fair enough. But I fail to see now the kudos of these cars, as so many are leased anyway? We know people with (leased) very flash cars but are nearing retirement with huge interest only mortgages round their neck, and minimal savings. I guess it depends what your priorities are - prefer to own my own house outright.