Why do millionaires drive cheap cars?

Millionaires often drive cheaper cars because they focus on investing rather than depreciating assets, understand cars lose value quickly, want to avoid unwanted attention (theft, fraud, lawsuits), and value practicality, reliability, and saving money on insurance/taxes over luxury, with many choosing dependable, older, or used vehicles like Ford F-150s, Acuras, or Toyotas.

What do 90% of millionaires do?

The famed wealthy entrepreneur Andrew Carnegie famously said more than a century ago, “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined.

What is the most common car driven by millionaires?

Most millionaires drive practical, reliable, and less flashy cars, with Toyota, Honda, and Ford being the top brands, often used models, focusing on value and avoiding large car payments, though some do choose luxury like Lexus or BMW. They prioritize financial discipline over conspicuous consumption, buying dependable vehicles that last, like the Toyota Camry or Honda Accord, and keeping them longer.
 

What is Dave Ramsey's rule on cars?

Dave Ramsey's core car rules emphasize paying cash, buying reliable used cars, avoiding new cars unless wealthy, and keeping total vehicle value under half your annual income to stay out of debt and build wealth. His philosophy centers on avoiding car payments, which he sees as money lost on depreciating assets, encouraging saving for a solid, affordable used vehicle instead. 

Do most millionaires drive expensive new cars?

Most people assume millionaires drive flashy sports cars or luxury brands, but the truth is, they focus on value over vanity. According to The National Study of Millionaires, the most popular cars among millionaires are practical, reliable, and fuel-efficient. Here are the top brands driven by millionaires: 1.

Charlie Munger: Don't Buy a Car — Here's Why It Destroys Your Wealth

Why Dave Ramsey says not to finance a car?

“Cars, trucks, RVs, boats, and everything that has motors and wheels go down in value,” Ramsey wrote recently. “NEVER finance them, because they go down in value and you get stuck in them. Don't let debt trap you in something that's losing value every day. Save up, pay cash, and own it outright.”

What car is the poor man's Ferrari?

The most common "poor man's Ferrari" is the Toyota MR2 (SW20 generation), nicknamed the "baby Ferrari" for its mid-engine layout, sleek styling reminiscent of Ferraris like the 308/348, and accessible price. Other cars sometimes called this include the Pontiac Fiero, Volvo P1800 (for its looks/GT feel), and even budget modern options like certain Hyundai Tiburons or the Ferrari California itself (as a more affordable entry).
 

How much should I spend on a car if I make $60,000?

On a $60,000 salary, you can generally afford a car in the $20,000 to $30,000 range, with total monthly car expenses (payment, insurance, gas, maintenance) ideally staying under 15-20% of your take-home pay, which might be around $300-$450 for just the payment, though some say up to 35% of gross income for the total vehicle price. Key factors are your credit score, down payment (aim for 20% to avoid PMI and reduce interest), loan term (shorter is better), and other debts. 

What is the money guy rule for cars?

The Money Guys' car rule, known as the 20/3/8 Rule, is a guideline for affordable car buying: put 20% down, finance for 3 years or less, and keep your total monthly car payment (including all household vehicles) to 8% or less of your gross income. This framework helps prevent overspending on depreciating assets, ensuring your transportation costs don't derail other financial goals like investing, and often recommends paying cash for luxury vehicles or paying them off quickly. 

How much should I spend on a car if I make $100,000?

With a $100,000 salary, you can generally afford a car worth $30,000 to $50,000, depending on your other finances, with total monthly car expenses (payment, insurance, gas, maintenance) ideally under $800-$1000 (10-20% of your net pay). A good guideline is keeping the total vehicle value under half your annual gross income, but prioritize conservative spending, a 20% down payment, and shorter loan terms for better financial health. 

What car does Elon Musk drive?

Elon Musk primarily drives Teslas, favoring the Model S Performance for daily commutes, the Model X as a family vehicle (noting its practicality and Falcon Wing doors), and has been seen testing the Cybertruck and a Roadster prototype, showing his preference for high-performance electric vehicles. He also owns other classic cars, like a BMW 320i, but focuses on showcasing Tesla innovation.
 

What car does Bill Gates drive?

Bill Gates drives several cars, but is known for his love of Porsches, including a classic Porsche 959, and has recently embraced electric vehicles with a Porsche Taycan and a Tesla Model X, surprising some due to his rivalry with Elon Musk. He also owns other luxury and practical vehicles, like a Rolls-Royce Ghost, Mercedes-Benz S-Class, and even a Chevy Suburban.
 

What car does Zuckerberg drive?

Mark Zuckerberg's daily driver is the Cadillac CT5-V Blackwing, a powerful American performance sedan with a supercharged V8, but he also owns other notable cars like a customized Porsche Cayenne Turbo GT "Minivan" and manual Porsche 911 GT3 Tourings, showing a preference for engaging, driver-focused vehicles despite his vast wealth.
 

What job makes $1,000,000 a year?

Entrepreneurship, Healthcare and CEOs

About 1% of U.S. small business owners, roughly 300,000, achieve this annually, per IRS data. Healthcare, especially highly specialized medicine, enables seven-figure incomes, with top neurosurgeons and cardiac surgeons often exceeding $1 million in private practice.

What do extremely rich people do for fun?

Six Ways How The Ultra Rich Have Fun

• Extreme Travel. ...
• High-Stakes Gambling at Top Luxury Casinos. ...
• Collecting Antiques and Rare Art. ...
• Exclusive Sports. ...
• Hosting Lavish Events. ...
• Investing In Hobbies and Passion Projects. ...
• Wrapping Up.

What is the smartest thing to do with $10,000?

Pay Down High-Interest Debt

That is, the money you'd make investing that $10,000 would be less than the interest charged on your debt. Putting extra money toward paying down high-interest debt is financially savvy, assuming you've started an emergency fund.

How much car can I afford if I make $3,000 a month?

Take-home pay is the amount you make each month after taxes, so if you bring home $3,000 monthly after taxes are deducted, it's likely you can comfortably afford a $300 car payment.

What should my net worth be at 35?

At 35, a common benchmark is a net worth of 1 to 2 times your annual salary, while median figures for the 35-44 age group in the U.S. hover around $135,000, though averages can be much higher ($550k+) due to outliers. Your personal goal depends on income and savings habits, but aiming for 1x your salary (e.g., $70k if you earn $70k) is a solid starting point, with higher figures showing faster progress. 

What is a red flag when buying a car?

Use your best judgment; if a car looks or feels wrong, don't buy it. Look out for excessive rust, a worn tailpipe, or illuminated dash lights. During your test drive, pay special attention to how the car handles and sounds. If something's off, ask the seller and double-check the title and history report.

How much should you spend on a car if you make $70,000 a year?

With a $70,000 salary, you can likely afford a car in the $25,000 to $45,000+ range, depending on your budget rules, aiming for monthly payments (loan + insurance) around $500-$800, keeping total vehicle expenses (payment, insurance, gas, maintenance) under 20% of your net income, and ideally putting 20% down on a loan under 4 years. A common guideline suggests your total car price shouldn't exceed half your annual income (around $35,000), but more conservative rules or aggressive saving can shift this, notes Benzinga and Ramsey Solutions. 

What credit score do I need for a $60,000 car loan?

According to Experian, a target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 6.51% or better, or a used-car loan around 9.65% or lower. Superprime: 781-850. 4.88%.

What hidden car costs should I consider?

Beyond the monthly payment, you'll also face years of variable expenses like car insurance, gas, maintenance and taxes, which can spike without warning. By considering these costs before buying a new or used car, you'll be better prepared for the financial ups and downs of hidden car ownership costs.

Why can't Kardashians buy Ferraris?

Among those banned are: Kim Kardashian – reportedly due to controversies around gifting and ownership disputes. Justin Bieber – after repainting and heavily modifying his Ferrari 458, something Ferrari discourages.

What car is known as the Ferrari Killer?

Ford GT40 – The Ferrari Killer. Thanks to its stunning Le Mans winning history, the GT40 was often referred to as the Ferrari Killer.

Which car is called the poor man's Porsche?

The nickname "poor man's Porsche" has been applied to several cars, most famously the Chevrolet Corvair for its rear-engine design similar to early Porsches, but also the Porsche 914, Boxster, Cayman, and even the Nissan 350Z, depending on the era and specific model, all signifying a more affordable entry into the sporty car experience.