If I had some extra bucks and kids, I would spoil them every chance I'd get!
Maybe not a brand new M model bimmer, but you know.
I think it's bad for kids to have a luxury car as their first car, though. Sure it's more safe and they'd be the envy of all their friends, but it teaches them the wrong things at a young age. If they've got $40,000 car and are just 16, obviously their egos will inflate and their pride will eventually get the better of them.
In the end, no one really cares what kind of car you drive. And after a while, you realize that all this expensive stuff isn't as important as the commercials would lead us to believe. But would some 16 year old kid with a $40,000 car actually appreciate it?
The only one that cares and should care is YOU. Whether you're an enthusiast or just need a status symbol, you will be the only one that really, truly cares.