Bad economy? Then why is everyone driving around with SUV's and new cars?

Question

I see BMW's and Mercades on the road everywhere!

Answer 1

Many of these people are up to their eyeballs in debt.

Also I see some people spend almost everything they have on a showy car and live in quite modest houses.

Answer 2

true, in fact i have wondered the same.  it could be that people are buying and owning a lot less of something else, or that the people who aren't rich enough to be able to spend that kind of money are spending a lot less time on the road, hence the expensive cars are a greater proportion of cars on the road making them more noticeable.  It could also be that people are saving more on day to day things and planning and saving more for such big ticket items as splendid vehicles.  i really do not know, this is mere conjecture.  

Answer 3

the economy isn't in recession.

The news media hates bush so much, they keep trying to tell everyone the economy sucks.

Not to mention, people already had those cars, and sometimes it makes more sense to keep driving them, compared to trying to sell them and taking a huge loss.

You either lose money in expensive gas, or you lose money by selling your car for peanuts.  You may as well drive it for another year or so..

Answer 4

Because before the gas prices went up most people owned SUV's and now that the gas is up they spend so much on gas that they can't buy new cars.

Answer 5

Car companies right now are giving huge incentives to new car buyers...ESPECIALLY the larger SUVs and trucks because they lose value with the increase in oil prices.  The car companies are doing what they can to get those vehicles off their lots to make room for more fuel efficient models.

Answer 6

The economy is only bad for the people who think it's bad. Seriously, depressions and recessions have a lot more to do with psychology than dollars.

Answer 7

The people that drive those sort of cars, choose to because rather they dont care about the money the blow or just because they can you know. I bought a new car tonight actually and only because my other one blew up lol. I bought a new car because its dependable and gas is great on it. Now SUV'S i dont really understand i would like to ask the same question, some people may have bought before gas prices where up. Some people must use for work, and or large familyes. Many people have there reasons, most i would like to believe is because they still owe money on it, or they just dont really have any choice but to drive it.

Answer 8

Because there isn't anything being done at the pump.

If you drive a Prius which gets far better gas mileage then say any SUV you both pay the same price.

Now imagine if you attached a RFID tag that id'ed every model and adjusted the pump price for people driving gas hogs.

The guy driving a 50 MPG Prius buys their gas at $2 and the big gas hog SUV would pay 10.

You could make exceptions for specific types of jobs that required trucks, constriction workers etc...

As long as you basically give it away to the people with money they aren't going to take any measures to save anything.  

Answer 9

"Cause they can't sell them, nobody wants them. Ford and GM are closing plants. Once again, the GOP has made it ineveitable that people buy foreign. How many jobs did this stroke of genius cost.

Answer 10

Although the gas went up and the economy isn't good, some people probably can afford news cars. And gas for some reason that I don't know went down. Some people probably are in debt by showing off there Benz or big cars and still trying to live in big homes like the other person said.