I think Osnabrueck made a really good point about leases. Lease rates (as in the % of people leasing rather than owning) have been climbing steadily. I cannot imagine someone like my father leasing a car back in the 70's... it was almost unheard of. IMHO a lot of people are leasing to get more car than they could afford to buy. I would argue that this is because people today are more conscious of, and worried about, how people perceive them and want to “be seen” in a prestigious car. So, I don’t think that the reason we see so many new cars around today is really a trend of the upper class… the upper class have always been able to drive whatever they want. I think this trend is due more to the middle class shifting towards leasing more expensive cars rather than buying more affordable ones.

Slightly off topic: As a MA Economics student I have often wondered how long this cycle of debt and low savings rates in North America can last. How much longer will the world economy allow people to spend more than they earn on a year to year basis?