'I Had the Money. So Why Not?'

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.

"Even the wealthy who haven't abandoned their spending culture are looking for ways to mask their spending," Cohen said. "They'll go into Fifth Avenue boutiques and ask for generic bags, so they're not carrying a Tiffany bag when they leave."

The discounts sucked Lloyd Carter, 44, into the previously unexplored world of shopping malls. During the economic boom, Carter, who works at the Library of Congress, was envious of people who bought grand homes and fancy cars, while he stuck with his 1996 Jeep Cherokee, stayed in his modest Upper Marlboro townhouse and avoided shopping. Now, Carter said, he feels vindicated when he sees foreclosure signs. And on weekends, he has found himself navigating department stores, taking advantage of generous markdowns.

"I can buy what I want," said Carter, holding a $66 shirt marked down to $7.99 as he shopped at Macy's in Pentagon City. He ended up buying two shirts, two sweaters and pants, all for $49.30, well below the $200 list price.

The prospect of a discount was not what persuaded Adam Greer, 44, an airline pilot, and his wife, Julie, 43, to spend $5,500 on season tickets to the Washington Capitals. They just love hockey.

"It's a guaranteed date night," said Julie, a nurse. Not that it was an easy decision. The Greers, of Clifton in Fairfax County, have four children, two of them in college. Their retirement accounts have shriveled, and pilots are being laid off.

"It was quite the debate," Adam Greer said. "My wife was the one who said maybe we should do this, and I was like, 'That's a lot of money.' "