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.