re: Do you reflexively think luxury car = rich driver and old car = poor driver?

One key factor being missed in here is the tax advantage of purchasing a vehicle enabled by The Tax Cuts and Jobs Act of 2017. Vehicles over 6,000 ibs GWVR qualify for 100% bonus depreciation through December 31, 2022.

It's the main reason I buy high-end luxury brand vehicles (That and "looking the part" for executives and investors); Otherwise, I'd be driving around in a reasonably priced vehicle for work and my beater of a jeep for pleasure. I rationalize it as an easy tax deduction; I'd rather spend the extra money and enjoy a top of the line spec'ed vehicle than throw the money away by writing a check to Uncle Sam.

Only downside is you're tied to the vehicle for the depreciation timeline. If you sell early you owe the difference of the depreciation recapture, but with the CPO warranty's these brands offer, it's not the worst thing in the world to be tied to for that length of time.

Word of caution, over-leveraging through debt should be factored. I always finance and deploy my funds into actual investments, but I'm lucky enough to be able to pay off all of my debts if needed.