Are you looking for a car that will show off your wealth and success? Or are you looking for a car that will get you from point A to point B without draining your wallet? For many wealthy Americans, the latter is the route they take when it comes to car ownership.
According to Experian Automotive’s 2022 study, 61% of households with income greater than $250,000 drive non-luxury cars such as Toyotas, Fords and Hondas. The Ford F-150 pickup truck was the most popular vehicle among this group and even the ultra-rich are seen driving cars such as Honda Fit and Accord.
Personal finance expert, Dave Ramsey has noticed this trend as well and says that for those who have built their first level of wealth, the cars they drive are “understated”. He also pointed out that this is because these wealthy individuals are not trying to keep up with the Joneses.
This is echoed by Suze Orman who recently shared an article on Twitter saying, “Please do not pay up for bells and whistles.” Her advice is to buy the least expensive car possible, preferably a used car.
This is because cars start losing their value the moment they are driven off the dealer lot. Luxury cars are known to depreciate faster and they also cost more to maintain and insure. Furthermore, the more money you spend on an expensive vehicle, the less you have to put into your investment portfolio which can have a much higher return over the long term.
So for those who are looking for a car that won’t empty their wallet, following the lead of many wealthy Americans is the way to go. With the right car, you can still get from point A to point B without sacrificing your financial goals.
