The cost of living is definitely less than 1000 dollars. After all the average salary in Bucharest is probably less than 1000 dollars per month, so we wouldn't be able to live here if it cost more, would we? :)
* While the median wage is a 1000 euro there are a lot of people that make a lot less than that ( < 500) and also quite a few that make a lot more.
* Expensive cars are the number one status symbol in Bucharest and Romania. People will often still live with their parents or in a run down apartment, as long as they can drive through the streets with an expensive car, so their budgeting priorities are a bit different from what you expect.
* There is a lot of unreported income and tax evasion in Romania as well as criminal activity, so on top of the high income inequality mentioned above, there are also a lot of people with high incomes that never figure into statistics and such but can afford luxurious cars.
Of course, they can't afford to really maintain them, so once a major component breaks down... they're probably out of luck and have to sell the car for parts or something.
Tunisia is poorer than Romania, and if you visit the streets, you'll see tons of Mercedes, BMWs, Porsches... The local just want to have one and that is the reason.
As a tunisian, this always confuse me. the average salary is WAY less than $1000, the tax on imported cars is very high, yet the number of luxury cars is too damn high.
Expensive cars are all over Phnom Penh too, even though the country is dirt poor. They belong to the rich elite.
I didn't even realise Lexus made 4x4s until I visited Phnom Penh.