The Rich Prefer Modest Cars — Should You Join Them?

A new study reveals that the wealthy have little love for flashy vehicles. Learn why it's smart to say "no thanks" to luxury brands.

The Rich Prefer Modest Cars — Should You Join Them? Photo by Federico Marsicano / Shutterstock.com

Mercedes, BMW and Lexus — oh my!

Although wealthy Americans can have their pick of vehicles from those luxury brands, many prefer to own the same modest models as Average Joes and Janes.

A study conducted by business research organization MaritzCX reveals that the top vehicle for wealthy Americans — those who earn more than $200,000 annually — is a Ford F-150 pickup truck, the most popular vehicle in the nation, USA Today reports.

Are you surprised? Take a look at the top five most popular cars for high-income Americans — those who earn at least $200,000:

  1. Ford F-150
  2. Jeep Grand Cherokee
  3. Honda Pilot
  4. Jeep Wrangler
  5. Honda Civic

Robert Ross, auto editor for the Robb Report — a magazine for the ultra-wealthy — tells USA Today that practicality often supersedes luxury-car lust. Some rich Americans view vehicles more like an appliance than a showcase item.

“Some people, like the actively employed wealthy, are too busy working to think about luxury cars,” Ross explains.

Purchasing a modestly priced vehicle rather than a luxury vehicle with a hefty price tag is a smart money move. That is especially true if you want to be wealthy enough someday that you can buy whatever car you want. In fact, “Live below your means” is one of the tips included in “7 Simple, Free Moves Guaranteed to Make You Richer.”

As Donna Freeman writes in that story:

“The more you live below your means now, the wealthier you are likely to become in the future.”

Keeping your financial wits is important if you want to build wealth. Being frugal is one of the key ingredients to getting rich.

For example — as we point out in “3 Lessons for Getting Rich” — instead of purchasing a $30,000 luxury car, why not buy a $20,000 vehicle and invest the remaining $10,000 in a mutual fund? That’s a particularly attractive alternative when you consider that with an average return of 10 percent for 30 years, you’ll end up with roughly $175,000 in extra savings.

For more tips on getting rich, check out “10 Ways to Make Easy Money.

What kind of car do you drive? Sound off below or on Facebook.

Trending Stories

New! Solutions to Common Financial Struggles for People 50 and Older

New! Solutions to Common Financial Struggles for People 50 and Older

We've partnered with the largest nonprofit consumer counseling agency in the country to offer solutions to the most common financial struggles facing seniors including Medicare assistance, debt and budget counseling, Social Security maximization, help with paying bills, reverse mortgage counseling and foreclosure prevention.

77 Uses for Baking Soda — and How It Could Save Your Life

Should You Use a Credit Freeze to Protect Yourself?

How to Make Sure Your Data is Wiped from Old Electronics

Comments

1,601 Active Deals

More Deals