Austerity Hasn’t Squelched Everyone’s Will to Purchase
Alexa Choi did something recently that most Americans are avoiding. She spent money. Lots of it.
On Christmas Eve, Choi went to a BMW dealer in Fairfax County and bought a black 2009 sedan. Her mother’s objections did not deter her. Nor did the fact that the value of her investments had shrunk by 40 percent. And that $48,000 price tag? No sweat.
“At the end of the day, I knew exactly what I wanted,” said Choi, 31, manager of an Arlington County-based technology company. “I needed the car, I had the money. So why not?”
While millions of Americans are losing their jobs and tens of millions more are hoarding cash, a small segment is spending freely, relying on steady incomes to buy clothes, finance European jaunts and renovate homes. A Washington Post-ABC News poll last month found that 3 percent of the population is spending more than usual.
In some cases, shoppers are paying full price because they feel financially secure. In others, they are taking advantage of steep discounts. “It’s like ‘Let’s Make a Deal’ for the consumer,” said Marshal Cohen, a New York-based retail analyst. “If you have the money, now is the perfect time to buy.”
Some shoppers said they are conflicted about parting with their cash as their investments evaporate. And many are wary of being conspicuous about consumption at a time when people are suffering.
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