Worth to spend more money for luxury cars?

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Years ago, most families had one car, which they kept until it died of old age. Today, families tend to have more than one car and will buy a new one every four or five years. And many people trade up more frequently.

Official statistics show the rich spend far more on cars than the poor.
figures courtesy of Edmunds.com
The problem is that cars are both expensive and awful investments — in fact, they’re not really investments. They are de-investments, which is my term for assets that are guaranteed to decline in value. When you invest, you hope that the value of your investment will increase, but when you buy a car, you know that its value will steadily drop. Since the main purpose of a car is to provide transportation, to get you from point A to point B, it may be time to rethink how you purchase cars.
Buying a new car is a poor investment that guarantees buyers an immediate loss of wealth. A new auto is more expensive than a used car as are the monthly payments, costs of insurance and registration. New cars immediately depreciate at an accelerated rate so if you have to sell soon after you bought it, you’re going to take a bath.

“It’s about emotional connections that people can make with a brand and how it makes you feel,” says Wes Brown, a principal consultant at Los Angeles-based consumer-research firm Iceology. But there’s more to luxury cars than prestige. Premium cars offer the most advanced safety options and best entertainment technology on the market, not to mention some of the plushest interiors and most options for customization. It’s not that vehicles from midrange brands like Ford Motor andHonda aren’t safe or don’t offer optional high-class amenities. But with standard features like heated leather seats and headrest-mounted DVD players, there’s an undeniable allure to owning a luxury car.
Luxury cars also benefit because the brands excel when it comes to safety–and have enough credibility for consumers to splurge on new innovations. Electronic stability control, blind-spot warning systems and anti-lock brake systems (ABS) all found their way into the general car market after their introduction in luxury vehicles.