August 26, 2003
Auto Inflation
When Pete and I were kids, we played a game with our friends the Goodmans whenever we were in the car. We'd keep our eyes peeled for certain cars, and if we were the first to spot one we'd get points -- the value of each make/model depended on its rarity. The breakdown was something like this:
VW Bug (the original): 1pt
Corvette: 5pts
Cadillac (excluding Cimarrons): 5pts
BMW: 5pts
Mercedes: 5pts
Limo: 10pts
Porsche: 25pts
Jaguar: 25pts
Ferrari: 50pts
Lamborghini: 50pts
Bentley: 100pts
Rolls Royce: 100pts
We'd play until we got to wherever we were going, and the kid with the highest score won that round (although sometimes we kept a running tally all day.)
I was thinking about this as I drove home recently, realizing that if I tried to play now I'd be well into the hundreds by the time I got home. If Lexus and Infiniti were included in the game (I don't remember if they were) I might hit a thousand.
Maybe it's just because of the towns I'm driving through, upscale berg after upscale berg, but there seems to be a proliferation of high-end automobiles. I pass dozens of Mercedes, scads of BMWs, armies of Lexi. I even see a Rolls Royce on a regular basis (same one, lives somewhere along Sheridan Road.) Does everyone just spend more on cars these days, or are the cars less expensive? I'm thinking it's a combination of both.
But boy, how boring for today's kids. I'd imagine the point scale has changed, with BMWs and Mercedes valued at only 5 points while Corvettes are up to 10 and Beetles are now worth what Porsches once were. After all, how often do you see a Punch Bug driving around these days?
Posted by Andrew Huff at August 26, 2003 02:44 PMit's a big old status symbol. in this day & age, too many people fall into the trap of needing to look a certain way. because, if you live in some upscale 'berg, you better not be driving around in some beater.
honestly, one of the best pieces of advice from my boss - buy a nice house, drive a car that gets you from point A --> point B. well, being in real estate, you can guess where we put our $$$, but it really makes so much sense. your car is worth what, less than 1/2 by the time you drive it off the lot? it might look good, but it really isn't worth much in the long run....
but, i guess if you have more $$$ than you know what to do with, might as well buy that jaguar ;)
Posted by: miss ellen at August 27, 2003 01:53 PMOn the other hand, I've known real estate agents who insist on having a very nice car because that's what their clients see, not their house.
While status is certainly part of it, I think it's also that "luxury" has become more affordable. Mercedes, Jaguar and BMW have drifted down in price, starting at about the same as an upper-end American car (mid-$30K range). Once upon a time you'd have to pay double what the domestics cost to get a German luxury car.
Posted by: Andrew at August 27, 2003 03:01 PMI think society has relaxed it's ideas about debt. The modern person carries a lot more debt than, say, 2 years ago. If the banks will let them, people will buy a car that roughly half their income, financing most of it. Personally, my grandparents would never dream of such a thing.
For me, a car is a luxury item. I don't care about resale value. Do I think about resale, when I buy a stereo or TV? No. My car is a toy, an expensive toy. I buy it for the best driving experience. If all I need is transportation, the CTA and the occassional rent-a-wreck will do.
Note: I do not own a car. I can't afford the toy right now and honestly, I don't want the debt.
Posted by: Dragonslayer at August 28, 2003 05:18 AMI meant to say 20 years ago. You get the gist.
Posted by: Dragonslayer at August 28, 2003 05:19 AMIf you were excluding Cadillac Cimmerons, Lexus and Infiniti weren't on the market yet (they hit our shored in '89).
As for the surge in luxury cars on the road, there is a general "luxurization" of consumer goods throughout the country. Foreign luxury cars, granite countertops, top of the line washers/dryers, etc. Guess we have easy credit card access, longer financing terms, home re-financing, and the surge in car leasing to thank.
Posted by: Benjy at August 29, 2003 10:59 AMThe cars didn't have to be brand-new to be counted, Benjy. Cimarrons are still roaming the streets, albeit in seriously reduced numbers.
Posted by: Andrew at August 29, 2003 02:00 PM