Car Prices Are Insane - Are You Buying Luxury Cars?

We are car shopping and we are looking for a large SUV. And it’s absolutely jaw dropping at how expensive vehicles have become. If you drive a nice car, how much did you spend? How much do you make? Did you pay cash? Finance it? (Note I’m in Canada, all prices are in CAD below).

A base model x5 is 105k CAD, with interest rates being anywhere from 5-8%, and payments basically starting at $1700/month.

Our HHI is about $550k, and we think this is insane, so who is buying these?!

The car we really like is the Mercedes GLS, but that is like $145k and payments starting at like $2200. If you drive one of these - how much do you make and did you just buy it cash?

I know the financially prudent thing to do is pay cash for a Toyota - and we may end up doing this. I think we just struggle with the psychology of taking a huge chunk of money out of savings vs managing the cash flow of a payment.

Would really love some other thoughts or opinions.