Because if you desperately need cash, you can trade in the $80,000 luxury suv for a $20,000 subcompact, and use that cash to pay rent and for food. It's a depreciating asset and sometimes a money sink, sure, but if you live somewhere you need a car anyway, some people choose the more expensive ones.
That's... Financially irresponsible. You build your cushion in non-depreciating assets. If you are approaching situation where you would desperately need cash, you prepare for in some way different from buying luxurious suvs.
There are some situations that can wipe your savings - even large ones - really quickly (e.g. cancer).
Wouldn't healthcare cover a large portion of these kinds of expenses? At least they do in quite a few parts of the world.
Not sure why you're being downvoted. Most parts of the world yes. Somehow in the US, no. My sister had cancer for 7 years and I think I probably paid close to $50k on her treatments because the treatments her insurance covered weren't sufficient so we had to take her to an out of network clinic (Mayo).
The "most parts of the world yes" is absolutely not true. Unless you consider G20 countries to be most of the world. In most parts of the world if you want actual state of the art treatment, you've got to pay from your own pocket.