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...

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

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"