These are the top car brands that affluent Americans who make over $200k drive the most – here’s why you should head for them too
If money wasn’t an issue, what car would you drive? Mercedes, Bentley, or perhaps the prancing horse from Maranello?
That’s what we think of as “the rich man’s car.” But the reality is a little different.
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Personal finance personality Suze Orman has some very candid advice for anyone looking to buy a car right now.
“Please don’t pay for bells and whistles.”
Here’s why she’s not alone in that opinion.
Toyotas, Hondas and Fords?
According to a 2022 study by Experian Automotive, a lot of wealthy people don’t drive luxury cars.
Research shows that for people with household incomes over $250,000, 61% don’t drive a luxury car. They drive Toyotas, Fords and Hondas like the rest of us.
Other studies show similar results.
Market research and customer experience firm MaritzCX found that the Ford F-150 pickup is the most popular vehicle in the US among people earning more than $200,000 a year.
In fact, even the super-rich may not splurge on exotic cars.
Mark Zuckerberg, who co-founded Meta (formerly Facebook) and has a net worth of $49.5 billion according to Bloomberg, is frequently seen driving a Honda Fit hatchback. amazon founder Jeff Bezos still driving a good Honda Accord after becoming a billionaire.
Legendary investor Warren Buffett also saves on cars.
His daughter said in a documentary: “You have to understand, he kept the car until I told him, ‘This is getting embarrassing – it’s time to buy a new car. ‘.
No need to show
We often associate the wealthy with lavish lifestyles — or at least that’s the impression we get from social media.
But in real life, that’s not always the case.
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Personal finance expert Dave Ramsey points out that for those who have built their first degree of wealth – he defines it as having a net worth of $1 million to $10 million – the the car they drive is “underrated” and “the valet is rarely impressed.”
“It’s usually a used Camry or a used Honda,” he said on an episode of The Ramsey Show.
“People who get to that level of wealth, from $1 to $10 million, the way they do it, they don’t do it for you. They’re not mad at you, but they don’t care what you think. They don’t live their lives to impress others.”
Simply put, they are not trying to keep up with the Joneses.
Especially given increase the cost of car ownershipYour goal when buying a car right now should be a simple one, says Suze Orman.
“Your goal should be to buy the cheapest car. Period. That will direct you to a used car rather than a new one,” she says. wrote last week.
Cheap cars get rich?
There are several reasons why you might want to think twice before buying a luxury vehicle.
The first is depreciation. Cars start to depreciate as soon as you drive out of the dealership. According to US News, the average depreciation for all vehicles in the first 5 years is 49.1%, while luxury brands can take much more than that. The average 5-year depreciation of a Mercedes S-Class is 67.1%. For a BMW 7 Series, that’s a whopping 72.6%.
Furthermore, luxury cars can cost more to maintain and insurance than economy cars. So what you have to allocate in the end is not just the purchase price. And once luxury cars are out of warranty, they can also be more expensive to repair.
Don’t forget, there is also an opportunity cost. The more money you spend on an expensive car, the less money you have to put in your portfolio. That potential profit – which can grow as time goes on – is your opportunity cost.
This can be a less convincing argument when you may need hundreds of thousands of dollars to secure an asset manager to invest your money. But today, it’s easy to start investing. You can even build a smart portfolio just by use your change.
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This article is for information only and should not be construed as advice. It is provided without warranty of any kind.
