A recent radio commercial for Lexus says, “What do people think when they see you driving a Lexus? For one thing, they see you as successful.”
But do they really?
Almost everybody leases their cars today. So you don’t need a lot of money to drive Lexus, BMW, or Mercedes.
One selling point of luxury brands has always been the notion that other people will think more of you when they see you buying and using the brand.
But does this still hold today?
Anybody who has read The Millionaire Next Door Knows that most millionaires don’t drive status cars.
FW, a wealthy client who made his fortune in equipment leasing, drove a nice-looking Oldsmobile, which he loved — even though he could have driven a BMW.
Do you think you are really fooling anyone by driving around in your leased luxury car?
We drive a Nissan Maximia and Toyota Sienna mini-van — both bought new and paid for with cash.
To me, zero debt is a lot more impressive than big monthly lease, mortgage, and loan payments.
Should Lexus rewrite its copy to reflect today’s market perception? Or are they still right on target with their assumptions about status?