QUIKAG

http://articles.moneycentral.msn.com/Retir...You.aspx?page=2

This data, plus personal experience doing financial planning in a previous job, etc., shows this to be true. Generally speaking, it seems the richer the person, the less likely they are to have a 'flashy' car or care that much about cars. They are more interested in building wealth than figuring out what car to buy next. Of course, there are always exceptions (rich car enthusiasts).

I believe poorer people try to compensate by owning an expensive vehicle to appear affluent versus actually being affluent. Ironically, owning that expensive car will make them much less likely to ever be affluent.

bd307

You are right about this! I've found this to be the case for most.

clawhammer

I'd like to have my cars become less than 10% of my net worth. I'm not quite there yet, but I'm working on it.

vtec9

Most people don't care about cars period.. that includes rich and poor.

vader1

I have posted this before but I know if I think about it three guys worth $100 million and one guy with maybe about $20 million.

One guy I went to school with is worth $100 million inherited a series of small banks when his dad drank himself to death. He was about 20 at the time and went through the show off phase but now has one S class Benz and thats it. He is working hard on drinking himself to death too. He does not need the Ferrari, you should see the girl he married. Holy crap. She's just....holy crap.

A second worth $100 mill+ is a land developer who is not a car guy he drives an Escalade and thats his only car. He is also 6'11 and stocky. He used to own a vette in the eighties but he could only drive with the roof off and his head stuck above the winshield. He buy toys though. Pilots license and he has a float plane, an A-Star helicopter, a giant yacht, cigarette boat, and is having a custom hovercraft built to go to and from his cabin on a private island up on a lake in Canada. Just not cars.

The third $100 mill dude was a politician I know who made his money in rental units. Tons of them. He is super cheap, and only buys used lincolns. He is also about 85 though but told me once that he has never bought a new car in his life.

The $20 mill dude is a trust fund baby from a department store family and former US Senator. Last time I saw him he had a Bonneville but that was a couple years ago.

cdelena

I am far from rich but I do understand conserving wealth... my S2000 is 9 years old (next month) and the wife's Maxima almost 11.

The richest person I know personally (multiple millions) drives a 7 year old SUV.

yellow2001

Some people are just not into cars. i know some of them have more expensive watches then why they drive.

Chris Stack

That's really the key. Plenty of people would rather spend their money on something else. My parents, my inlaws, and most of their social circles all have incomes in the top ~3% or so, making them comfortable if not rich. In that group, it's mostly cars that are $30k and below. My parents just bought a Lexus ES350, and my inlaws have a T-bird to go with their minivan, Camry hybrid, and Envoy (company car), but for the most part, the wealthy-ish people I know all drive Honda Accords, minivans, Grand Cherokees, Exporers, etc. Almost none of these people are "car people," save for my father in law who thinks his T-bird is a sports car (but he did once restore an '88 535i so his car guy rep is safe.)


However, I also live near South Barrington, IL, which is a very wealthy area, and it is chock-full of 5-series, E-classes, Range Rovers, and X5s and MLs. A lot of these people are doctors/lawyers and small business owners, and probably lease these cars for the tax benefit.

dombey

so if you have negative net worth, how do you calculate this? lol

We have law school loans, business school loans, and a 2 yr old mortgage, plus our car loans... and we're young - net worth percentages are kinda useless for us, I guess.

jlstyle82

This is very true.