Well for most it's a status thing. They're showing off to other drivers, trying to give other people the impression that they're better. Or, they may be over compensating for something (if you catch my drift) they're a less-than-upstanding-citizen who takes money from under the table. But mainly the first one.

> Also cars won't last that long.

A properly maintained vehicle easily lasts more than a dozen years. If you only take your vehicle to Jiffy Lube, you aren't maintaining it.

The payments on a $40,000 vehicle are a little over $500 per month ($6,000 per year). That hardly breaks the bank.

It's what their "credit line," their "CPA" and the "Joneses" tell them they should be driving. With proper maintenance, and a strong will, a car can last you 10+ years, and you can tell your neighbours to shove it when they say your car is a "POS" that ruins the neighbourhood.

After 20-25 years, that POS car is a "classic," that everyone wishes he had!

I've no idea but it's one reason why America is in such a dire financial situation. There is an apt expression 'champagne lifestyle on a lemonade income'.

same as a person making $50,000 would spend $20,000.

or someone making 25K spend 10,000.

Why families with $100,000 yearly income buy $40,000 cars? They must hardly meeting their other needs. I will plan my spending in a way that a little bit money balance. Also cars won't last that long. Why still some spent too much on cars. Whatever they drive our opinion on them s based on their personality and smartness.