Car and Class

[LivingAlmostLarge]

A friend of mine said her boyfriend wouldn't give up his car because it made him respected as middle class. He has a new toyota Tacoma and had bought it after trading in a more expensive car. But she was worried because he wasn't paying on his student loans and eeking it out.

But she said that it's a great car and he totally should keep it. I said nothing but it got me thinking, so basically the car you drive shows people what class you are? Does the age matter? Have you seen this recently?

I feel like a middle class people drive luxury cars like BMW, Lexus, Acuras, Volvos. I have no idea how they afford it, but I know they aren't bringing home like $500k+. Most like $100-200k. But they drive really nice cars on what I think is a middle class life.

What do most think?

[disneysteve]

All of those folks (or at least most of them) you see driving luxury cars on modest incomes are leasing. They're renting status symbols basically.

I don't think what you drive has anything to do with what "class" you are but I'm sure a lot of people do think that.

I once had a patient ask me why I didn't drive a nicer car, a "doctor" car. That was when I still had my 98 Camry and this was probably 5 or 6 years ago so it was about 10 years old at the time. I kept it for several more years after that and replaced it with a 2006 Camry last summer so I guess I'm still not driving a "doctor" car.

[bigdaddybus]

I recently bought a 2010 off lease BMW (2010 135i convert, 6 speed, sport package)after looking for the right car for several months. I paid $28,900 for it. A new one is $50,000. I didnt tell coworkers I bought it, but when I was noticed driving it, the questions/comments started.
"Nice new BMW!" "How did you swing that with 4 kids?" "Someone must have gotten a raise" etc. I just respond with "Its a nice used car, and I think I made the right choice as it was the same price as the new Ford Focus ST I almost bought"

I am a car guy, I buy performance cars (Mini Cooper S, Honda S2000, and Subaru WRX) are previous cars I have owned. I never received many, if any comments with those cars. But this BMW gets ALOT of feedback. And alot of the "You must be rich" type of comments.

I'm not sure what is socially acceptable for a family making 180-200K a year to drive, but my wifes mini van cost $32K out the door and noone even notices it.

[Nika]

Around NYC I don't think anyone cares what brand of car you have.

Now, a parking spot, that's a subject of envy!

[Blessed]

Class seems to have nothing to do with cars here. Broke people are driving the same cars as those of us with some financial security. Lots and lots of pick ups here. We have a later model car( used) and truck paid for with cash. Occasionally someone comments on hubby truck being nice looking but pretty much no one seems to notice anything.

[bjl584]

It's mostly pick up trucks around my house, as it's pretty rural. As you get closer to the city however, you start to see the European luxury cars. I can't be sure, but I get the feeling that most of the people that are driving them probably can't afford them.

[ua_guy]

Beware the "thirty thousand dollar millionaire."

[dawnwes]

Yeah, he is wrong.

The only time you need a status type car is if you need to be driving clients around in your car and need to impress them somehow.

My husband drives to the train station, leaves his 2002 Saturn VUE there, takes the train in to work, and makes slightly over six figures.

I realize we aren't millionaires, but we both have MAs and more professional white collar jobs.

Right now we are thinking of buying a car......we went to test drive and look at a 2006 Honda Accord that we can pay CASH for.

I never, ever want payments again.

Dawn

[Like2Plan]

I guess it depends... As I mentioned in the Do you hide your finances? thread, the prestige cars amongst my thrifty co-workers (before I retired) were older less expensive cars. If they were held together with bailing wire and duck tape with the pavement showing through the floor boards--all the better.

[LivingAlmostLarge]

Ha times like that makes me yearn for my corolla. But I wonder how people can justify paying for a new truck over student loan debt?

[ua_guy]

Ha times like that makes me yearn for my corolla. But I wonder how people can justify paying for a new truck over student loan debt?

I don't have student loan debt, but I can see how people get in that situation. Student loan debt takes forever to repay, was generally taken for a hardship, often doesn't feel "worth" it, and unless the degree really starts paying for itself after graduation, I think it's begruding for some people.

A new truck is way more fun (and useful) than a lot of financed college degrees. That doesn't make it right, though.

[siggy_freud]

Depending on the situation and rates it may be better to finance a car over paying down student loan debt (if you're already set on financing a car).

I can write off student loan interest on my taxes. I can't do the same on a car.

My GF will get a newer car long before she starts aggressively paying off her student loans. It's not for a lack of fiscal irresponsibility IMO. If she works in the public sector for 10 years, the loan is forgiven. So there is incentive NOT to pay that debt if there is other current or future debt ahead that could yield better overall use of the money.

[DenisD]

Just because you drive a fancy car doesn't move you up the social ladder. Actually here in Moscow, Russia where I live it does since most poeple buy their cars in cash and cars costs way more than the states or Europe. So if you see a person driving a Mercedes or a BMW here you know they've got money and are of higher social class. However in the states one might be driving a brand new Porshe, live in a million dollar mansion and not have a penny saved. These people might appear wealthy, but as soon as they lose a job or some other financial misfortune happens they lose everything to the bank, so the things they own (or pretend to own) don't really define their class. Actually some of the richest people live very modestly, read the Millionaire Next Door if you want to find out how real millionaires live

[bigdaddybus]

I think the car thing depends a lot on where you live. My relatives from Boston and Orlando freak out when they see how many sq feet you can get for the money here in the midwest.

It's nice not to be house poor like a lot of my friends and family. Makes it a lot easier to save and buy cars too.

[Permanent Temp]

I'm not sure but I saw this come in to play with a friend of mine. He is a salesman and owns 3 cars. And old Lexus he paid for in cash, and older Cadillac that he paid for in cash and almost never drives and a Toyota (not sure if this is a company car, leased etc). Even though the Lexus is older he had a lot of trouble getting a sale while driving it. So he got the Toyota and makes many many more sales that way. So while selling he drives the Toyota, and on a day to day basis he drives the Lexus.

Based on that I'd assume that people do judge you by which car you have, but I didn't think the car you have necessarily accurately reflects your actual financial status.