These are the best auto brands that wealthy Americans earning over $200,000 drive the most — and why you should

'Don't Live Their Lives To Impress Others': Here Are The Top Auto Brands That Rich Americans Earning Over $200,000 Drive The Most — And Why You Should Too

‘Don’t Live Their Lives To Impress Others’: Here Are The Top Auto Brands That Rich Americans Earning Over $200,000 Drive The Most — And Why You Should Too

If money was no object, what car would you drive? Mercedes, Bentley or maybe the Prancing Horse from Maranello?

Those are what we think of as ‘rich people’s cars’. But the reality is a little different.

Don’t miss Toyota, Hondas and Fords?

According to a study by Experian Automotive, many rich people simply don’t drive luxury cars.

The survey found that of those with household incomes over $250,000, 61% do not drive luxury brands. They drive Toyotas, Fords and Hondas like the rest of us.

Other studies show similar results.

Customer experience and market research company MaritzCX found that the Ford F-150 pickup truck was the most popular vehicle in the US for people making more than $200,000 a year.

In fact, even the ultra-rich may not spend on exotic vehicles.

Mark Zuckerberg, co-founder of Facebook and who has a net worth of $49.5 billion according to Bloomberg, is often seen in a Honda Fit hatchback. Amazon founder Jeff Bezos still drove a Honda Accord after becoming a billionaire.

Legendary investor Warren Buffett is also thrifty with cars.

“You have to understand that he loves cars until I tell him, ‘This is going to be embarrassing – time for a new car,'” his daughter said in a documentary.

No need to show off

We often associate rich people with lavish lifestyles – at least that’s the impression we get from social media.

But in real life, that’s not always the case.

Read more: The Great Escape: Wealthy Young Professionals Making More Than $100,000 Flee California and New York — Here’s Why and Where They’re Going

Personal finance expert Dave Ramsey points out that for those who have built their first level of wealth — he defines it as wealth between $1 million and $10 million — the cars they drive are “understated” and that “the parking attendant rarely impressed.”

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“It’s usually a used Camry or a nice used Honda or some nice old pickup truck,” he said on an episode of The Ramsey Show.

“People who reach that layer of wealth, that one to ten million dollars, like they did, didn’t do it for you. They’re not mad at you, but they don’t care what you think. They didn’t live their lives to impress others.”

Simply put, they are not trying to keep up with the Joneses.

Will cheap cars make you rich?

There are several reasons why you may want to think twice before purchasing a luxury vehicle.

The first is depreciation. Cars start to lose value the moment you drive out of the dealership area. According to US News, the average depreciation for all vehicles over the first five years is 49.1%, while luxury brands can lose much more. The average five-year depreciation for a Mercedes S-Class is 67.1%. For a BMW 7 Series that is no less than 72.6%.

In addition, luxury cars can cost more in maintenance and insurance than economical cars. So you don’t just have to pay the purchase price. And once luxury cars are out of warranty, they can also be more expensive to repair.

Remember that there are also opportunity costs. The money you spend on an expensive vehicle could have been put into your investment portfolio and yielded returns year after year. That potential return — which can increase over time — is the opportunity cost.

Today it is easy to start investing. You don’t have to save tens of thousands of dollars. You can build a smart investment portfolio just by using your spare change.

What to read?

This article provides information only and should not be construed as advice. It comes without any kind of warranty.

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