Are people driving more luxury vehicles than in the past?

[dsg512]

I've been seeing a lot more high-end cars on the road recently. Mercedes', BMWs, Audi's, etc. A seemingly huge amount especially where I live, Ajax, and as I go about the GTA in general. Of course this is anecdotal on my part, has anyone else noticed this? Are Canadians getting richer?

[No Frills]

Well, we could easily make this an 'adult children living at home with more dispensable income' thread....lol

On the other hand, the entry level german luxury cars are a little cheaper than they should be, we can get into the economics behind it but we can leave it at that.

[Simaahoy]

This should be posted in the Automotive section

[uber_shnitz]

It probably depends on many factors. "Luxury cars" aren't as expensive as they used to be; there are entry level BMWs, Mercedes and Audis available at relatively affordable prices. I think there's even an affordable Porsche now too IIRC. This probably plays into the mentality because those "brands" are considered luxury regardless of their price.

[No Frills]

This should be posted in the Automotive section

It could fit there, however, I think the OP has his question based on people's status rather than the cars themselves.

[tarumi]

Well anyone can lease/finance the car nowadays.

[forthewinwin]

Not necessarily, it's also because they're becoming easier to obtain. You only need a couple thousand to buy an older 3-series. For $18k, the rough price of a new civic after tax, you can buy a pretty nice shape 3-series or older Audi or Merc. A while ago I saw some ads for a 2008 E350 for only $28k... Definitely not unaffordable.

Not to mention now there is the cheaper 1-series, b200, x1, glk, and c250 that aren't too far off the price of say, a Camry or Accord.

And you could just finance one... :lol:

I came across this guy who was making a $2750 bi-weekly payment for his fairly new Ferrari Calfornia. He may be fairly well off, but if he were actually rich, then wouldn't he just buy it outright?

And in Richmond Aberdeen Mall, they have a 2006 black Lamborghini Gallerado with 24k on the odometer on the floor, for 125k. Not unaffordable... And some people just want it for the sake of the name so they can just say they have one :lol:

When I think about the price some people I know paid to finance their new Camry or Rav4, could easily buy TWO old 330ci

[spike1128]

There is no such thing as leasing in the past. Leasing make it more affordable. Just like Financing before it. People used to pay cash for cars. Model T anyone?

[stanleylai]

Its probably not the same situation but when I went to Hong Kong 75-85% of cars were luxury brand audis,BMW,Mercedes, Porsche but people who would be willing to drive there probably had money to spend like that anyways. I was at a used car center and the prices and variety was shockingly cheap, maybe I haven't seen many used auto dealers but they had a lambo on the floor for $2m hkd

[DaleCooper]

Its probably not the same situation but when I went to Hong Kong 75-85% of cars were luxury brand audis,BMW,Mercedes, Porsche but people who would be willing to drive there probably had money to spend like that anyways. I was at a used car center and the prices and variety was shockingly cheap, maybe I haven't seen many used auto dealers but they had a lambo on the floor for $2m hkd

I went to Bangkok quite a few times and a lot of cars people drive are luxury cars. Keep in mind that most luxury cars over there are at least 100% more expensive than in Canada and people are supposedly 5 times poorer. People would rather drive a nice car than buy a condo. It's a status symbol.

So, I think it has a lot to do with immigration.

[samm]

Its probably not the same situation but when I went to Hong Kong 75-85% of cars were luxury brand audis,BMW,Mercedes, Porsche but people who would be willing to drive there probably had money to spend like that anyways. I was at a used car center and the prices and variety was shockingly cheap, maybe I haven't seen many used auto dealers but they had a lambo on the floor for $2m hkd

Exactly. I'm living in Yaletown (but take transit) and its the exact same situation. If you can afford a $1+ million condo, then you can easily afford a luxury car. Being a car lover myself, I love living in this area.

[DrXenon]

Something like 65% of BMWs in the GTA are leased (rented) by the same people who got the 0-down, 40-year mortgages. The only question people ask is "What will my monthly payment be?"

[desidealer49]

They are more affordable than before.

[Canuck2fan]

Basically if you can afford car insurance in Ontario you are in a luxury class these days LOL. Also the price of financing/leasing has never been lower because of interest rates being so cheap. 3% mortgages take a second with any equity and spend spend spend...

[matdwyer]

Older generations were extremely vigilant about saving and carrying minimal debt. Buy what you need, not what you want.

Now a days you finance or lease what ever the heck you want and deal with the consequences "tomorrow"

[flyclothing514]

yea i have been seeing a lot of audi a4, Mercedes c300. bmw 328. these are the entry levels models right? what are they 30k$-40k$?

[ntan]

yea i have been seeing a lot of audi a4, Mercedes c300. bmw 328. these are the entry levels models right? what are they 30k$-40k$?

Taxes in, I would say closer to 55k.

[The Modem Wizard]

Leases. You should see the percentage of leases on new BMW, it's like in the 70s.

[boredstudent3]

Leases. You should see the percentage of leases on new BMW, it's like in the 70s.

Yeah I too used to think that a person out right owned (ie purchased) the nice vehicle he/she was driving

But when I spoke to a lot of them in person, most said they were leasing

Similar to when you see a girl carrying a designer bag, you can't assume it is a real one

So when you see a nice vehicle, don't assume they purchased it, heh

[dc200]

I went to Bangkok quite a few times and a lot of cars people drive are luxury cars. Keep in mind that most luxury cars over there are at least 100% more expensive than in Canada and people are supposedly 5 times poorer. People would rather drive a nice car than buy a condo. It's a status symbol.

So, I think it has a lot to do with immigration.

Is this why Markham has so many chinese lease specials?

[RCGA]

I wonder if the higher percentage of people who lease will impact the used market for BMW, Merc, et al.

[booblehead]

these days, most people are looking at $XXX per month. If it fits the budget and driving a luxury car, why not. At least you are keeping up with neigbors, friends, families.

[poedua]

There is no such thing as leasing in the past. Leasing make it more affordable. Just like Financing before it. People used to pay cash for cars. Model T anyone?

' Affordable ' is a relative term.


" Leasing a car is the worst financial option for most " - Globe & Mail


http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/leasing-a-car-is-the-worst-financial-option-for-most/article551390/

[tim-x]

Canadians are not getting richer. Banks and lenders are getting richer because people live beyond their means. Everyone I know thinks they deserve to be making $100k plus regardless of a lack of education or skills. The number of people working unskilled jobs, driving a Gmc Yukon and spending $100+/month on their iPhone bill is astounding. And then when they lose their job and creditors are knocking at their door they complain that there's some conspiracy against them.

[spike1128]

' Affordable ' is a relative term.


" Leasing a car is the worst financial option for most " - Globe & Mail


http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/leasing-a-car-is-the-worst-financial-option-for-most/article551390/

There is no need to point that out. I already know overall, you pay more. My definition of affordable is like the other has said, the people are only concern about the money payment.

If there were in leasing / financing, you will see a lot of dealers disappearing. Why? Because people will need to save up the whole amount in order to buy and pay it in cash.

[poedua]

There is no need to point that out. I already know overall, you pay more. My definition of affordable is like the other has said, the people are only concern about the money payment.

If there were in leasing / financing, you will see a lot of dealers disappearing. Why? Because people will need to save up the whole amount in order to buy and pay it in cash.

Best quote I ever saw on this topic.........



" if you can't afford to finance ....you can't afford to lease "


;)

[onlineharvest]

As others have said, many if not most are leased.
Many people are fine with ALWAYS having a car payment, and getting a new car every 3-4 years.
When I purchased my Mazda Tribute, the finance payment was $150 more per month than leasing a new BMW 3 series.

I have banker friends who work at TD in my area (Vaughan), and they told me not to be deceived by what I see (more luxury vehicles here than Ajax I'd bet). He sees their bank sheets and many are in debt up to their eyeballs to maintain these status symbols.

[Heero01]

It probably depends on many factors. "Luxury cars" aren't as expensive as they used to be; there are entry level BMWs, Mercedes and Audis available at relatively affordable prices. I think there's even an affordable Porsche now too IIRC. This probably plays into the mentality because those "brands" are considered luxury regardless of their price.


yea i have been seeing a lot of audi a4, Mercedes c300. bmw 328. these are the entry levels models right? what are they 30k$-40k$?


Well, we could easily make this an 'adult children living at home with more dispensable income' thread....lol

On the other hand, the entry level german luxury cars are a little cheaper than they should be, we can get into the economics behind it but we can leave it at that.


Taxes in, I would say closer to 55k.

LOL

People are delusional. being a live at home adult does NOT equal being able to afford an "entry level" luxury vehicle. 55k is UNAFFORDABLE for a 20 year old such as myself. After paying rent to parents, tuition to school, credit cars and not to mention taxes I was barely able to scrounge up enough money to purchase my BRZ which was not even close to 55k.

So to those people who say "live at home adults" can afford these cars: stop making stupid statements. We have the same expenses as everyone else - BUT WE ALSO HAVE TUITON.

And thanks to OSAPs stupid rules - the hard working amongst us don't even qualify for OSAP!

Life for a young adult attending school is harder then ever now a days.


Is this why Markham has so many chinese lease specials?

Markham does appear to be an exception. Compared to Mississauga (where I reside) there are alot more luxury vehicles and alot younger people driving them.

I guess they are just richer. Meh.

[M-e-X-x]

these days, most people are looking at $XXX per month. If it fits the budget and driving a luxury car, why not. At least you are keeping up with neigbors, friends, families.


I have banker friends who work at TD in my area (Vaughan), and they told me not to be deceived by what I see (more luxury vehicles here than Ajax I'd bet). He sees their bank sheets and many are in debt up to their eyeballs to maintain these status symbols.

...and here's the problem. Trying to one-up each other. Realized it's useless to do that a few years ago, wish I knew earlier :(

How I see it, if you gonna go luxury, go big or go home. My condo I see the typical mainlander kids here for school and parents bank-rolling them. Yes they drive M3's, C63's etc, but there was this one kid that definitely went big. He drove an AM V8 Vantage. Sure, the cheapest of the Astons but whatever. Hats off to him for actually going luxury.

[Poulet]

If the full price of the car is not in your bank account at purchase time, lower your expectations.

Get a 15,000$ car. If you still don't have the money, buy used.

[valinrace]

More affordable now and many kinds of leases and finance so everyone can buy what they really want know and suffer later. hahaha I think the same as matdwyer.

[No Frills]

LOL

People are delusional. being a live at home adult does NOT equal being able to afford an "entry level" luxury vehicle. 55k is UNAFFORDABLE for a 20 year old such as myself. After paying rent to parents, tuition to school, credit cars and not to mention taxes I was barely able to scrounge up enough money to purchase my BRZ which was not even close to 55k.

Lol you took it the wrong way, you are only 20 and going to school. Have a full time job for a few years and living at home when you are 25+ with minimal expenses anyone can afford an entry level german car. If it was me in that group, I'd probably be driving a 5-series bimmer...lol. Of course the focus in that situation is saving up to buy property, nevertheless paying a few K more for a smooth ride is nothing to sneeze at.

Of course more of those people are more frugal and not all in this category are buying luxury. This category probably make up only a small percentage of total luxury car owners in the GTA. Its just funny bringing this concept up on RFD

[dc200]

No Frills, then what do you do when you leave home? Live in some crummy apartment and drive a junker? Saving up to buy property would be a better decision IMO.


Markham does appear to be an exception. Compared to Mississauga (where I reside) there are alot more luxury vehicles and alot younger people driving them.

I noticed that when the driver is under 25, the majority of those vehicles tend to be leased under their parents' name.

[ntan]

No Frills, then what do you do when you leave home? Live in some crummy apartment and drive a junker? Saving up to buy property would be a better decision IMO.



I noticed that when the driver is under 25, the majority of those vehicles tend to be leased under their parents' name.

I'm from Vancouver, and I assume Markham would be similar (Big Asian community), a good portion of those who drive luxury vehicles made money overseas, and hence, can afford these vehicles. Furthermore, BMW's, Benz etc. costs significantly more in Asia (Luxury tax is somewhere around 70-100% on these vehicles).

As for the lease under the parents' name, it could be because:
a) Cheaper insurance
b) Business write-off

[forthewinwin]

No Frills, then what do you do when you leave home? Live in some crummy apartment and drive a junker? Saving up to buy property would be a better decision IMO.
I noticed that when the driver is under 25, the majority of those vehicles tend to be leased under their parents' name.

Well, I being under 25, leasing under the parent's name is usually the only option. :lol:

I'm 19, and technically speaking I am able to buy an old 3-series, say, a year 2000 325i, and I know of others my age who already own an older 3-series. It's about $2000 - 3000 more than the Honda Civic with similar mileage/age, which isn't an inobtainable amount of money. This is to pay a full-cash payment, not lease. If you were to lease, the selection broadens dramatically.

For example, if you leased an approx. $15000 vehicle for 24 months, including interest (which can get you a pretty decent shape old 3-series or A4), = $625/month. Add about $600/month for insurance, gas, maintenance, etc (although may vary upon area). = $1225/month. Owning a cheaper car would probably run you about $500/month, so you pay a $600 approx. premium to own that thing. Not taking into consideration what it'd cost you for the Civic purchase, but let's just make a more pessimistic scenario.

You don't need to be "rich" to come up with the extra $600/month.

It's not unaffordable, yet that's something I would not feel comfortable doing, given my current income level and being a student, but hey, people do it anyways... "yolo" right? :lol:

I know of others my age who do, in my opinion, worse things at this age... clothes, vacations, beauty, eating out at expensive places, etc... Give someone here $600/month and it doesn't last long at all. It is very easy to spend $125/week here. Go to the bar and nice restaurant every weekend and maybe buy some snacks here and there and there goes your $600... and that figure goes up for those who like to go to bars a lot and take a trip here and there.

Not many people agree with me on this one, but personally, if given me those 2 choices- nicer car vs. cheap car but spend money on the above, I'll rather opt for the nicer car and have something that makes me happy everytime I get to touch it- a tangible good.

[No Frills]

No Frills, then what do you do when you leave home? Live in some crummy apartment and drive a junker? Saving up to buy property would be a better decision IMO.

Your opinion is your opinion, this topic has been beaten to death in OT already with pros and cons on each side

[dc200]

I know, just personal preference.

[DJ_Peanuts22]

yea i have been seeing a lot of audi a4, Mercedes c300. bmw 328. these are the entry levels models right? what are they 30k$-40k$?

Don't forget the Lexus IS250 and Acura TSX. No semi-baller list is complete without them.

[mmretlol]

There's definitely been a change...which IMHO is a confluence of many factors:

1. cars have indeed gotten cheaper, including luxury cars. Once upon a time, the quintessential BMW was a 5 series. Then it became a 3 series. Now they launched the 1 series, though it definitely isn't the biggest seller (yet?)
2. over time, there is real growth in incomes and Canada has had a pretty good go of things over the last say 20 years.
3. advent of leasing has made things more "affordable" (quotation marks are definitely intended here)
4. interest rates are at historic lows
5. advent of securitization (somewhat related to #4) has reduced credit spreads and made it easier to obtain financing
6. Canada hasn't really experienced the real estate bust that other developed countries have. I recall an anecdote relayed to me by an American, saying that sometime in late 2006 he was at a gas station and saw a 25 year old kid pull up in a Bentley Continental. That's when he knew that things had gone way too far. :)
7. sheer demographics, more people = more rich people.
8. this one may be controversial, but there has been a fair amount of immigration from Asia (also lesser extent middle east) in recent years, and a lot of these kids are the offspring of wealthy mainland businessmen etc. Also, often times they tend to value the car a bit more than "traditional Canadians" (again, quotation marks intended)
9. societal preferences can change over time - whereas 30 years ago people just wanted to get a solid job, buy a house, and save for retirement, today perhaps the 20 and 30 somethings just want to live in the moment (and take on debt, see points 3, 4, 5, 6, etc.)

[Arrgh]

Yes.

I'm driving a luxury vehicle myself -- a 10 year old Mazada Protege. It's very nice.

[iownyou]

There is nothing wrong with being in debt....it's all about potential income......I'm in my late 20s, just bought a condo and I'm getting an Audi lease soon....I'm not rich but as long as I'm able to keep up with the payment, I don't see the problem.....

If u don't have a stable income, I wouldnt recommend it

[lexani]

There is nothing wrong with being in debt....it's all about potential income......I'm in my late 20s, just bought a condo and I'm getting an Audi lease soon....I'm not rich but as long as I'm able to keep up with the payment, I don't see the problem.....

If u don't have a stable income, I wouldnt recommend it

Buying a car/condo - in debt - hoping you don't get laid off from your job. Niceee!

[Poulet]

There is nothing wrong with being in debt....it's all about potential income......I'm in my late 20s, just bought a condo and I'm getting an Audi lease soon....I'm not rich but as long as I'm able to keep up with the payment, I don't see the problem.....

If u don't have a stable income, I wouldnt recommend it

Might want to change your nickname from iownyou to bankownsme. ;)

[Heero01]

Lol you took it the wrong way, you are only 20 and going to school. Have a full time job for a few years and living at home when you are 25+ with minimal expenses anyone can afford an entry level german car. If it was me in that group, I'd probably be driving a 5-series bimmer...lol. Of course the focus in that situation is saving up to buy property, nevertheless paying a few K more for a smooth ride is nothing to sneeze at.

Of course more of those people are more frugal and not all in this category are buying luxury. This category probably make up only a small percentage of total luxury car owners in the GTA. Its just funny bringing this concept up on RFD

Ah ic what you mean... but in all honesty - Despite living at home I don't feel I have minimal expenses. I feel that I actually have more expenses then most adults.

I pay rent to my parents as well as money for food. I also pay for my tuition, insurance as well as gas. Even if I had a full time job I don't see how I could afford to buy a 60k car while saving to put down a payment on a house.



I noticed that when the driver is under 25, the majority of those vehicles tend to be leased under their parents' name.

Ah yes... Asians bankrolled by their parents - How I envy and hate them lol :P


Might want to change your nickname from iownyou to bankownsme. ;)

LMFAO

[tim-x]

There is nothing wrong with being in debt....it's all about potential income......I'm in my late 20s, just bought a condo and I'm getting an Audi lease soon....I'm not rich but as long as I'm able to keep up with the payment, I don't see the problem.....

If u don't have a stable income, I wouldnt recommend it

One of the most financially irresponsible things I've read on this forum that wasn't a troll.

[iownyou]

Why do you guys just assume that if someone is going well, they might get laid ......

[iownyou]

One of the most financially irresponsible things I've read on this forum that wasn't a troll.

How can you tell? You don't even know me....

[iownyou]

Might want to change your nickname from iownyou to bankownsme. ;)

We need each other....

Do u have a credit card? Does the bank own you when u have a balance during the month ???

[IndusVally]

We need each other....

Do u have a credit card? Does the bank own you when u have a balance during the month ???

I guess it depends how much debt we're talking about...

But if you make enough that it doesn't impact your lifestyle, you should be good.

If you have an Audi payment and upscale condo (guessing, based on the Audi). You would have to earn ~150k per year to live comfortably.

[WildWolf]

Older generations were extremely vigilant about saving and carrying minimal debt. Buy what you need, not what you want.

Now a days you finance or lease what ever the heck you want and deal with the consequences "tomorrow"

GenY (those under 28) are rich, remember. BMW, Mercedes, Lexus, they must drive those cars. Oh well, even if they are making a good income, it isn't enough because they are living beyond there means. They will argue they don't, but deep down in their heart, they want to live beyond their means.

[tim-x]

How can you tell? You don't even know me....

Because the idea of financially stretching yourself thin for a luxury car is just plain stupid. You might have a good job right now and that's great, but you should never count your money before you have it. Don't go spending paycheques you don't have yet. You're right that there are some things you need to go into debt to buy (e.g. a house and sometimes a car) but it makes no sense to strap yourself financially in order to do so. If you've figured out what your monthly income is, and figured out every possible way to spend it all by the end of the month then you're not being very wise with your money.

If you become ill, or have to take leave to care for a loved one, or just plain old get laid off then you're left with tens of thousands of debt hanging over your head that you have no way of paying off. While you frantically scramble to find a job, the interest accumulates and costs you more tens of thousands of dollars and then you're working some dead-end job that you don't like just to pay for the things you bought beforehand. Or you go on social assistance or EI to pay your bills which the rest of us end up paying for, or you declare bankruptcy and the banks recoup their losses through their other customers (i.e. the rest of us again).

[hdom]

Many people are self employed now, leasing a new car is better for writing off.

However, the catch with leasing is sometime they get you for driving over the set milage or not keeping the condition of the car and end up spending more in the end. So, make sure you read into the contact and do some research.

[mr_raider]

Don't forget the Lexus IS250 and Acura TSX. No semi-baller list is complete without them.

Those two cars (along with the g37) have the advantage of a longer list of standard features at a lower price point. If you care more about what you actually get for the money, rather than prestige, they are decent choices.

[spike1128]

GenY (those under 28) are rich, remember. BMW, Mercedes, Lexus, they must drive those cars. Oh well, even if they are making a good income, it isn't enough because they are living beyond there means. They will argue they don't, but deep down in their heart, they want to live beyond their means.

Don't forget the inheritance buddy. If your grandparents/parents die; you get their house/car/insurance policy/all the other goodies. That's what a bud was doing, he is celebrating his parents' death by showering himself with luxury.

[slomo]

Older generations were extremely vigilant about saving and carrying minimal debt. Buy what you need, not what you want.

+1.

I think there is generational perception shift that is going on. They were more introspective and inward looking. To put it in a more contemporary term, the emphasis has shifted from the essence to the periphery, from character to bling. :)

[iownyou]

+1.

I think there is generational perception shift that is going on. They were more introspective and inward looking. To put it in a more contemporary term, the emphasis has shifted from the essence to the periphery, from character to bling. :)

well.. they were living happily in the 70s... and we are stuck with the bill ~~~

[Anonymouse]

Many people are self employed now, leasing a new car is better for writing off.


I'm no accountant, but I've been told that if a company acquires a car as a capital expense, they can depreciate it and pay about the same net tax as leasing, while enjoying a lower interest rate.

I think the explanation for all the Benzes etc. in the GTA is people only ask "What is the fanciest car I can get for $800/mo?" and don't look at the long term financial consequences of leasing all the time. Benz knows this is a good business, so they are calling up lessees 3 months before their leases are up and offering to put them into a new Benz at a great price, to prevent them from cross-shopping BMWs and Audis.

[onlineharvest]

I'm no accountant, but I've been told that if a company acquires a car as a capital expense, they can depreciate it and pay about the same net tax as leasing, while enjoying a lower interest rate.

I think the explanation for all the Benzes etc. in the GTA is people only ask "What is the fanciest car I can get for $800/mo?" and don't look at the long term financial consequences of leasing all the time. Benz knows this is a good business, so they are calling up lessees 3 months before their leases are up and offering to put them into a new Benz at a great price, to prevent them from cross-shopping BMWs and Audis.

+1
A financed/owned vehicle can be 'written off' as they say.
A lease is certainly easier to account for, while the financed/owned is only slightly more complex (and who really cares if you are handing this off to your accountant anyway!)

But with a lease, payments are usually less expensive for more car, and people like to drive brand new cars every 3 years.

If an accountant told me to pay $600/month for a tax right-off, I'd run in the other direction. I'd rather KEEP the $600/month and forgoe the write-off. Its more money in my pocket, the other way is stupid math. Now, if you want a brand new vehicle every 3 years, that's another story...

[mr_raider]

I'm no accountant, but I've been told that if a company acquires a car as a capital expense, they can depreciate it and pay about the same net tax as leasing, while enjoying a lower interest rate.

I think the explanation for all the Benzes etc. in the GTA is people only ask "What is the fanciest car I can get for $800/mo?" and don't look at the long term financial consequences of leasing all the time. Benz knows this is a good business, so they are calling up lessees 3 months before their leases are up and offering to put them into a new Benz at a great price, to prevent them from cross-shopping BMWs and Audis.


Yes and no. If the company (and I mean corp, not self-employed) owns the car, a taxable benefit is applied for the individual on personal miles driven. That benefit (standby charge) is substantially lower on a leases vehicle (2/3 of the payment) vs owned vehicle (24% of the value per year). Even then, it's only substantially profitable when you have more than 50% business miles, since you can benefit from an laternative formula.

The short vesrion is that leasing makes sense for business owners only if you are incorporated, and have less than 50% personal use.

[slomo]

well.. they were living happily in the 70s... and we are stuck with the bill ~~~

Are we happier in the past?

Another tendency we have to forget the bad experiences and remember just the good ones. We are more informed now as individual than we have ever been at anytime since the dawn of human history. Where we would be without the beloved internet? And yet, we are more confused as we bombard ourselves with useless information in the 'Pursuit of the Trivial'. Our life expectancies now increased due to advancement in health sciences, and yet we keep working to our deaths, because we are chasing the dreams of acquiring more things that blings, instead of reflecting of what makes us truly happy.

[iownyou]

Because the idea of financially stretching yourself thin for a luxury car is just plain stupid. You might have a good job right now and that's great, but you should never count your money before you have it. Don't go spending paycheques you don't have yet. You're right that there are some things you need to go into debt to buy (e.g. a house and sometimes a car) but it makes no sense to strap yourself financially in order to do so. If you've figured out what your monthly income is, and figured out every possible way to spend it all by the end of the month then you're not being very wise with your money.

If you become ill, or have to take leave to care for a loved one, or just plain old get laid off then you're left with tens of thousands of debt hanging over your head that you have no way of paying off. While you frantically scramble to find a job, the interest accumulates and costs you more tens of thousands of dollars and then you're working some dead-end job that you don't like just to pay for the things you bought beforehand. Or you go on social assistance or EI to pay your bills which the rest of us end up paying for, or you declare bankruptcy and the banks recoup their losses through their other customers (i.e. the rest of us again).

if i don't spend those paycheques i don't have yet, my quality of life would be totally different....
i am in debt, but i do it comfortably... i'm not trying to "figured out every possible way to spend it all by the end of the month" but i'm spending it on thing i enjoy...
and i don't mind paying those interests if i can get a better life out of them....

[Poulet]

if i don't spend those paycheques i don't have yet, my quality of life would be totally different....
i am in debt, but i do it comfortably... i'm not trying to "figured out every possible way to spend it all by the end of the month" but i'm spending it on thing i enjoy...
and i don't mind paying those interests if i can get a better life out of them....

Is there a THANKS button for the banks?

[george__]

I think it's the Generation Y's way of life ... We just like to spend more and life fancy :D
Also were there things like 0% financing and loans way back when? If not, then maybe the baby boomers were more wise with their money because of interest payments?
Read me! (http://www.thestar.com/business/article/1213344--gen-y-guess-who-s-driving-the-luxury-market)

[Piro21]

Remember that cheap luxury cars didn't really exist until recently. The 3 series has been around since the 70s, but the C-class, A4, and IS300 didn't come around until the mid 90s, and the TSX, CTS, and G35 (nobody really bought the previous G) only came in around 2002. Cheap luxury as a concept took some getting used to, but now that it's sunken in a lot of people want it (similar to the condo boom). Companies are pushing every offer they can at people to get them to their badge of choice as quickly as possible, and long-term debt on a depreciating asset doesn't seem to be a concern for most people.

[sandikosh]

Leasing has made it possible to drive a luxury car today.

[george__]

Leasing has made it possible to drive a luxury car today.

Lease a Ferrari as a business car :D

[forthewinwin]

Lease a Ferrari as a business car :D

lol I came across this guy who was making a $2750 bi-weekly payment to get his California, and shortly after he's selling it. :lol:

[george__]

lol I came across this guy who was making a $2750 bi-weekly payment to get his California, and shortly after he's selling it. :lol:

Was it a reallly nice car? It might have been worth it (kinda like a short joy ride)

[iownyou]

lol I came across this guy who was making a $2750 bi-weekly payment to get his California, and shortly after he's selling it. :lol:

wow... that's a little overkill... :D

[poedua]

Remember that cheap luxury cars didn't really exist until recently. The 3 series has been around since the 70s, but the C-class, A4, and IS300 didn't come around until the mid 90s, and the TSX, CTS, and G35 (nobody really bought the previous G) only came in around 2002. Cheap luxury as a concept took some getting used to, but now that it's sunken in a lot of people want it (similar to the condo boom). Companies are pushing every offer they can at people to get them to their badge of choice as quickly as possible, and

long-term debt on a depreciating asset doesn't seem to be a concern for most people.

It should be.;)

[iEyeCaptain]

because yolo

[iHop]

Lux cars have become wayyyy more affordable. 80's s-classes went for about $85k USD and over a period of 20-30 years, they have only increased at most $10k. Same goes for 3-series, C-class, etc.

[mmretlol]

Lux cars have become wayyyy more affordable. 80's s-classes went for about $85k USD and over a period of 20-30 years, they have only increased at most $10k.

Thank you Lexus LS.