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?

80% of cars are bought on credit, largely hire purchase type arrangements (according to Money Box on radio 4 this morning). People seem to pay the equivalent of a second mortgage every month so that they can drive around on flash cars. I know so many people who do this. It seems to have become an accepted (massive) monthly outgoing.

I'm on universal credit (Disability) and drive an Audi.......... It's on Motability!!!!!!!
Don't be so judgemental and frankly, stereotypical!!!

I get what you mean, my Sil and bil have a rented flat and a car that costs more every month than my mortgage (of course that will be paid off sooner than my house though but my house will last longer than their car)

What perplexes me is why people buy cars with bigger engines than they need, using more fuel and being worse for the environment.

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A Lease car possibly

Lease cars probably but anyway nobody's business but the person paying for the car is it

My hillbilly neighbor says it very well......it’s either paying for parts or a monthly payment, either way

I've had people sneer at our cars, apparently we should have something nicer on our salaries, we've got a four year old Citroen C4 and a ten year old focus. Most of the people sneering have their cars on finance and lots don't own a home. It's what my gran would call fur coat and no knickers.

Ah my Gran used to call the woman next door all lace curtains no knickers and a fanny full of debt.

"then this post can be put to rest"

It WAS

Just to divert a bit, and I don't know if it's already been said, but I don wonder what all the new cars from leases and PPE is going to do to the car market in a few years time. I suppose there was sort of an equilibrium before, with new cars and used cars for sale. But now there will be an enormous glut of used cars floating about. What happens to them? Scrappy? Sold? I just think the dynamic change is huge and there will be some sort of consequence.

I had same conversation today. I have no idea how people afford the big cars like range rovers etc. Agree with maisy that people who are more affluent are less likely to have a flash car.

I'm in HA and drive a "nearly new" car - nothing flash mind - just a Fiesta!

I managed to scramble together 1k and trotted off to buy a secondhand car in the name of prudence. I seemed to spend more time driving the manager's car whilst mine got fixed... it died anyway and I'd spent a horrendous amount on repairs.

So I went and bought nearly new from a main dealer - I'm not sure what the product is called - more like a loan I suppose because I will own the car at the end. I didn't want to do lease due to kids + dog + unknown mileage. The insurance is cheaper, the tax is cheaper and obviously it flies through MOT/service.

As for what I spent on my banger which turned out to be a total lemon... that would've paid my loan for about 18 months. So it turns out prudent isn't always prudent.

@DonDadaOnTheDownLow but that sounds sensible for your circumstances, you didn't go and get a brand new range rover or Mercedes!

I don’t understand it either I’m pretty working class public sector worker I have a nice house though big enough for my family and drive a pretty avaerage 8 year old car , I just can’t understand why you would plough all your money that would be a deposit for a decent house on driving a car worth about 40k just doesn’t make sense .

I haven’t got a high status car but I did spend out on a newer car that required finance rather than buy one I could afford outright simply for the fact it would be more reliable, need less maintenance aside from the usual service and MOT and have a bit of warranty. I’m a low earner but live rurally so a reliable car is essential for work and taking the kids around.

The only thing that annoys me is the people who think they are better than everyone else because they have a ££££ car. They are so special
that double yellows, red lights, speed limits etc don’t apply to them. 🙄

We did leasing once in the 90s never again.

Would rather save up for cars and drive an older car, love having no debt.

To me the idea of leasing a car you'll never own is a huge waste of money. We bought a car (East Asian brand, nothing special, but definitely as safe and reliable as the premium European brands, was carefully researched) in cash.

I think the reason why people buy a premium brand car is because when they drive round in it no one knows where they live and what they earn, so if feels good to feel superior.

I don't think someone's car is an indication of wealth anymore as lease deals have made having a BMW for instance affordable for most people.

People enjoy status symbols . Has always been thus. Perhaps if you’re living in a less than desirable house or location it’s the one bit of luxury you can afford with a monthly payment .
The luxury cars on the roads in NI never fails to surprise me . Countless evoques with personalised number plates parked outside average houses .

That's an interesting point nearlythere.

They need one to get their giant telly home.