What do you think when you see a new driver/teen driving a luxury car?

My first experience of such was seeing one college student standing next to a brand new BMW 5-Series in the college parking area, with a friend. Other 'sightings' soon followed, and it occurred to me that many of these individuals could easily pass for anyone else in the college crowd, except for the physical trappings of parental prosperity. Over time, I have witnessed some things that taught me that the grass in a well-to-do privileged household is often of the same shade as ours and mine. It is neither greener nor a barrier towards a normal life for such youngsters. Many of them genuinely want to fit in with their age group peers, regardless of household income.

Striving for Desires

Some kids in that position are wholly aware of their standing in the general crowd and make it a point to prove themselves by working towards their desired results under their own steam. As an exception, I haven’t seen any of the “do you know who my father is” attitude from anyone originating from such backgrounds. Money is basic a tool that enables us to do the things we might fancy, given an absence of financial concerns. The ability of individuals to earn money varies to such an extent that it can't be quantified properly by hourly or weekly rates, whether it be parents or college freshmen with a side biz running.

Pitfalls of Envy

It would be unwise to envy such new drivers or teens. Instead, we should be grateful for what is present and working out in our lives presently. Having witnessed many instances of teens driving luxury cars, some might envy the freedom and prestige of having such vehicles. However, it is important to recognize that financial circumstances often play a significant role.

Realities of Luxury Cars for Teens

I always imagine the young drivers’ faces after they have their first fender bender, which is inevitable. For most young drivers, the parents either own it and/or bought it for them since the vast majority of teenagers lack the financial ability to afford expensive cars. In my area, I don’t give such instances a second thought. The median family income in my village, a second-tier SF suburb, is nearly 200K, and the average is around 250K. The average household net worth is 1.25 million, which includes students from young middle-class families who rent modest apartments and retirees who own old houses outright and subsist on social security and a pension. Thus, around 20-40 households with children have a net worth of over 2 million. About 10 families earn over 1 million annually, and a few earn eight figures.

In my situation, spending 50k-100k on an aspirational luxury brand car is not material. A ~50k BMW 5-Series or MB E-Series for a family with a net worth of 5 million is a 1 outlay. Proportionally, this is spec compared to the median 45-55 year old’s 143k net worth vs. the 33500 average new car price, which is a staggering 23.4 outlay! I grew up in the next town out, which was 20 years ago and was also fairly affluent but a notch lower on the economic ladder. Most of my high school classmates who drove luxury cars got their parents’ 3-5 year old hand-me-downs. Generally, I assume that teens behind the wheel of 'exotic cars' are driving a parent's 'weekend car.' This is pretty common - a lot of folks have a Honda Civic or Accord to drive to the transit station or office park and run errands, and a Lamborghini or Maserati for weekend fun in the hills. Even though this may be an imprudent outlay, it is their money to spend.