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Automotive Marketing Facts: What Income Levels Buy Luxury Vehicles

By January 13, 2016April 24th, 2020No Comments
What Income Levels Buy Luxury Vehicles

What Income Levels Buy Luxury Vehicles

In the U.S., what income levels buy luxury vehicles? The statistics on this can be a little tricky and all the political spin about income brackets does not help. A research firm, Kantar Media TGI, found the median income of luxury car buyers was just under $100,000 a year. That means about half of luxury vehicle buyers make more than that, and half make less. Nearly 20% of U.S. households have income of $100,000 or more, but some of those households cannot afford a luxury car costing $40,000 or more. On the other hand, many individuals with no one to care for but themselves may well afford a luxury vehicle on an income considerably less than $100,000 per year. But that’s households, only 6% of individuals earn $100,000 annually. An individual making $80,000 per year might well afford an Acura TLX or BMW 3 Series. And two individuals with no dependents each earning $60,000 per year may very well want a luxury nameplate in the family fleet. So one need not be wealthy to enjoy the benefits of a luxury car. The top 10% of households hold 86% of the wealth and account for over half of all U.S. consumption, but they do not purchase the majority of luxury cars and that’s a fact.

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