Spending Habits

[SunDancer]

Is it just me, or are you seeing a major increase in luxury spending in the last year or two? When did our country all of the sudden become so rich? BMWs, Mercedes, Audis, ect. are as common as their lesser-price non-luxury makes.

[NoMyths]

Credit is more popular than Jesus.

[Hurst2112]

If you consider that for the price we just paid for our new Mazda 6, we could have leased a BMW. Leasing a cool luxury car is a way to up your status.

[SunDancer]

If you consider that for the price we just paid for our new Mazda 6, we could have leased a BMW. Leasing a cool luxury car is a way to up your status.

Yeah, but are you talking about the "entry-level" BMW? The major surge in the Lexus, Mercedes, Jaguars is partly due to recent creation of cheaper-line models, that don't really fulfil the true BMW "quality" or whatever the brand is.

[Hurst2112]

The cheaper line models might be the ones I am seeing and talking about (i can't tell the difference between luxury car models). Perhaps we aren't talking about the same thing then. I can attest that here in the cities, there are a lot more luxury car being drivin around (thinking back in the last 2 years). I can only assume that it is because of low lease and financing rates. Granted people are getting richer, but leases are getting to be very popular with consumers, especially in the car types we are talking about.

[SunDancer]

The cheaper line models might be the ones I am seeing and talking about (i can't tell the difference between luxury car models). Perhaps we aren't talking about the same thing then. I can attest that here in the cities, there are a lot more luxury car being drivin around (thinking back in the last 2 years). I can only assume that it is because of low lease and financing rates. Granted people are getting richer, but leases are getting to be very popular with consumers, especially in the car types we are talking about.

Yeha, people are getting richer (but its always like that, and usually the people who are getting richer are already wealthy). But I think the combo of the corporate greed, low financing and aggressive rebates, new cheap end models (a BMW, Audi or Benz can be purchased for just under $30K-but they aren't they typical quality of that brand) and the leasing deals are the cure. But its not just cars, more in clothes, ect. Are we really that wealthy, or is it that the Boomers are at a peak of income and driving in debt? If the latter, will such luxury spending slow down then?

[Fritz]

I'm confused. what advice do you need?

[SunDancer]

I'm confused. what advice do you need?

Advice? None.

[rkmsuf]

Nobody is going to buy you a BMW if that's what you are getting at

[SunDancer]

Nobody is going to buy you a BMW if that's what you are getting at

Lol. No, I am not talking about cars at all. Just kinda got offtrack with that in a discussion with Hurst. This is what I am pretty much asking (as cars are an example) "Are we really that wealthy, or is it that the Boomers are at a peak of income and driving in debt? If the latter, will such luxury spending slow down then?

[rkmsuf]

Lol. No, I am not talking about cars at all. Just kinda got offtrack with that in a discussion with Hurst. This is what I am pretty much asking (as cars are an example) "Are we really that wealthy, or is it that the Boomers are at a peak of income and driving in debt? If the latter, will such luxury spending slow down then?

I conclude the people are that wealthy

[SunDancer]

I conclude the people are that wealthy

Yes, I know. But not nearly everyone gets wealthy overnite.

[rkmsuf]

Yes, I know. But not nearly everyone gets wealthy overnite.

I think you are overstating any drastic increase.

[Ksyrup]

But I think the combo of the corporate greed, low financing and aggressive rebates, new cheap end models (a BMW, Audi or Benz can be purchased for just under $30K-but they aren't they typical quality of that brand) and the leasing deals are the cure.

What exactly does corporate greed have to do with this? Making an automobile that more people can afford (lesser quality would stand to reason, given the price vs. the traditional models) is a bad thing? It's corporate greed, not supply and demand?

[cuervo72]

Advice? None.

You're not looking into running a dealership?

[rkmsuf]

You're not looking into running a dealership?

:)

and it wasn't me this time

[SunDancer]

Nevermind.

[Philliesfan980]

I think its a combination of bad/poor decision making by young individuals and increased wealth of the Baby Boomers, along with increased focus of "car status". Drive through any inner city ghetto, and you'll be sure to find some cars that are worth about half of what their homes are worth.

[Ksyrup]

I don't think "car status" has necessarily increased. That's been that way for years. The fact that interest rates made it easier for the middle class to afford $25-$45K cars has a lot to do with it.

I remember going on a church youth trip to the Appalachian mountains back in the mid- 80's, where we would help fix people's homes. These houses were essentially shacks, barely had running water, no bathrooms...yet theyall had suped-up Camaros and humongous satellite dishes. It was surreal. These people would be staring at holes in their roofs and sitting on dirt floors, yet they were watching channels I couldn't get back home on cable and driving around in car that had more essentials than the house.

[SunDancer]

I don't think "car status" has necessarily increased. That's been that way for years. The fact that interest rates made it easier for the middle class to afford $25-$45K cars has a lot to do with it.

I remember going on a church youth trip to the Appalachian mountains back in the mid- 80's, where we would help fix people's homes. These houses were essentially shacks, barely had running water, no bathrooms...yet theyall had suped-up Camaros and humongous satellite dishes. It was surreal. These people would be staring at holes in their roofs and sitting on dirt floors, yet they were watching channels I couldn't get back home on cable and driving around in car that had more essentials than the house.

Thanks for the respond. This what I was more getting at, though not just with cars. As for my "corporate greed", I might of put it wrong terms. The luxury car makers, jewelers (like Tiffany and others), clothes (L. Vutton), ect. are going down-market with models (that basically break out of the "luxury market") in terms of quality of price.

[Ksyrup]

But I see that as just supply and demand - not necessarily a bad thing, but a chance to grab market share based on name prestige that they were missing out on because a certain segment of the population would never be abel to afford $50K+ cars. Same thing with stuff like Tommy Hilfiger clothes and the like. Attach the name, put the price tag just in reach, and just like that, you've got a new segment of the population to sell to. That's good business, IMO.

[SunDancer]

You're not looking into running a dealership?

Nah...But Ben Affleck might be.

[SunDancer]

But I see that as just supply and demand - not necessarily a bad thing, but a chance to grab market share based on name prestige that they were missing out on because a certain segment of the population would never be abel to afford $50K+ cars. Same thing with stuff like Tommy Hilfiger clothes and the like. Attach the name, put the price tag just in reach, and just like that, you've got a new segment of the population to sell to. That's good business, IMO.
Yeah, I agree. I just said it wrong. But it always could risk the prestige and name of the brand as well.

[QuikSand]

I don't think there has been a marked increase in luxury cars in the last year or two... so I'd tally a lot of this up to a perception issue. Perhaps your level of awareness of such matters has just grown rapidly... what with all your plans for big wealth, it stands to reason that you might be looking more closely at luxury automobiles than before, right?

To the extent there's a reality behind the perception, then I'd say interest rates are the first component of the answer. Purchasers of homes and cars (things where we are used to thinking in terms of monthly payments) are finding that their money goes a lot further than before... thus both markets remain pretty hot. Not that complicated, really.

[cuervo72]

... what with all your plans for big wealth, it stands to reason that you might be looking more closely at luxury automobiles than before, right?

I'd always fancied him a Plymouth man.

[SunDancer]

I don't think there has been a marked increase in luxury cars in the last year or two... so I'd tally a lot of this up to a perception issue. Perhaps your level of awareness of such matters has just grown rapidly... what with all your plans for big wealth, it stands to reason that you might be looking more closely at luxury automobiles than before, right?

To the extent there's a reality behind the perception, then I'd say interest rates are the first component of the answer. Purchasers of homes and cars (things where we are used to thinking in terms of monthly payments) are finding that their money goes a lot further than before... thus both markets remain pretty hot. Not that complicated, really.

My plans for big wealth?

[Fritz]

My plans for Donald Trump after getting breast implants and blonde hair?

we know all about your plots for easy money

[SunDancer]

we know all about your plots for easy money

LOL. Well, I would have a better haircut then Trump. Plus, I can't stand Trump. Anyone notice that Trump and Mark Cuban are going at it now lately?

[SunDancer]

I'd always fancied him a Plymouth man.

A Plumouth man? Yuck.