According to a recent report by CDK Global, Gen Z buyers are more likely to buy luxury cars than any other generation, with 39% saying that the vehicle they bought was a luxury model. Members of Gen Z are more likely to buy a luxury car than any other generation, with BMWs topping their shopping list.
You might think that if money wasn't a problem, people would be cruising around in luxury cars like Mercedes, Bentleys, or even Ferraris. However, the truth about what wealthy people drive might surprise you. A 2022 study by Experian Automotive discovered that many wealthy individuals don't actually drive fancy cars.
Most millionaires don't drive fancy cars—and that might surprise you. The truth is, most millionaires live simple, disciplined lives. They don't waste money on luxury cars or big mansions. Instead, they follow a proven plan, avoid debt, and let their wealth grow over time.
Try This: 9 Things You Must Do To Grow Your Wealth in 2024
Using data provided by Experian Automotive, Muller predictably found the top four choices for people who earned more than $250,000 were luxury models: the Mercedes-Benz E-Class, the Lexus RX 350 and the BMW 5 Series and 3 Series.
Zuckerberg recently announced a couple of other new additions to his personal fleet, including a Porsche Cayenne Turbo GT that has been transformed into a minivan, and matching “his and hers” manual Porsche GT3 Touring sports cars.
Bezos also owns a car collection reportedly worth around $20 million. His collection includes several high-end vehicles such as a Cadillac Escalade, Land Rover Range Rover, Mercedes-Benz S450, Ferrari Pininfarina Sergio, W Motors' Lykan HyperSport, Bugatti Veyron Mansory and Koenigsegg CCXR Trevita.
“Some wealthy individuals prioritize practicality and functionality over luxury,” said Loretta Kilday, senior attorney and spokesperson for Debt Consolidation Care. “They opt for reliable, well-built cars that suit their lifestyle and transportation needs rather than flashy high-end vehicles.”
Also, I mention the median price paid for the most recent motor vehicle purchased by a millionaire was $31,367 [for decamillionaires-$41, 997]. It is understandable why so many people relate wealth with the price tag of a motor vehicle.
“Given the 10% guideline for car expenditure, a buyer should ideally be earning around $100,000 annually,” advised Scott Friedson, the multi-state licensed public adjusted CEO of Insurance Claim Recovery Support.
It is a myth that most millionaire next door types only buy used cars. In fact, for every one millionaire that is used vehicle prone there are two who tend to buy new vehicles.
But even the upper class can still make financially sound decisions. For some, that means purchasing a Tesla. The average Tesla costs anywhere from about $40,000 to $90,000 before any upgrades, dealership fees or taxes.
In 2020, Blacks spent $5.6 billion on luxury cars, up from $3.9 billion in 2010.
Our study found that new luxury car buyers are more likely to be Gen Z (under 25 years old) and older millennials (34 to 40 years old), and to identify as male and Hispanic or Latinx. Additionally, they tend to be high-income earners, parents, and live in cities.
The Wealthiest Buyers Have Cash to Spend
“But, now, when you look at the actual percentage of our customers and how many lease, finance, or pay cash, it comes down to 20% leasing, 20% financing, and the rest (60%) making a cash purchase.”
Top 10 car brands driven by millionaires: 1. Toyota 2. Honda 3. Ford 4.
So, what does “running rich” mean, and how does it happen? Running rich only occurs if there is an issue with your engine's combustion process. The cause of this is your engine receiving too much fuel. Conversely, “running lean” refers to your car receiving too much air and not enough fuel.
Nearly 60% of luxury consumers say that quality and durability are the main reasons they purchase luxury goods, according to Bain & Company. Luxury brands trade on the fact that their products last longer than standard category items.
Bill Gates
One of the best cars in his collection is his Porsche 959 sports car. And in 2020, he revealed in an interview with Marques Brownlee that he had bought an electric Porsche Taycan. "It is very, very cool," he said at the time. "This is my first electric car, and I am enjoying it a lot."
Musk owns a few Teslas such as the most controversial Cyber Truck, the Model Y, which he uses as a family vehicle, and a Tesla Model S Performance, a game changer in the electric car industry. The Tesla Model S Performance can accelerate from 0 to 100kmph in 2.5 seconds while carrying five occupants in luxury.
Despite being the sixth-richest person globally, Warren Buffett continues to drive a 2014 Cadillac XTS he purchased with hail damage. Although he can afford any luxury vehicle, Buffett prefers the practicality of his 10-year-old car.
Amazon founder Jeff Bezos is one of the richest men in the world, with a net worth in the hundreds of billions. What is less known about Bezos, however, is his surprisingly modest car ownership history. Even after he made his billions, Bezos kept driving economy cars like his 1997 Honda Accord for many years.
Mark Zuckerberg and Autism
Zuckerberg is indeed an extraordinary individual, known for his meticulous attention to detail and capacity for intense focus on intricate problems. His 2013 disclosure revealed his diagnosis of Asperger's syndrome, a form once considered a milder variant of autism.
BMW was the most popular make driven by the C-level executives on the survey TheLadders.com conducted for USA TODAY. Yet BMWs accounted for only 13% of the total, followed by Ford at 7% and Lexus at 5%. A separate USA TODAY survey of 90 CEOs found 13% drive a BMW, 12% a Mercedes and 10% a Toyota.