Cars cars cars

When us commoners buy a car, we tend to go for cars that are widely sold like toyota and proton, whereas the rich mostly go for luxury cars like Ferraris. Or Hyundais or something. So that means they'd be able to afford these Ferrari parts which are expensive (duh). But what puzzles me the most is why anyone would want to sell a car as luxury? I totally understand advertising and how it works, but I just don't understand why this part of man exists, you know?