What Do Rich People Drive

Actually most rich people tend to drive trucks now.

In reply to NY Nick :

The car that got the most snide comments was a decade old Boxster S I had. I suppose it was flashy (white on factory red interior) and it was definitely well kept but, man, it got way more hate than my orange Lotus, any of the CTS-Vs, Corvettes, etc.  I had to tell people that it cost less than a new Civic. 

mr2s2000elise said:

RX Reven' said:

This is so deliciously stereotypical (Santa Clarita Diet)...

I get that realtors need something that can cart around an entire family and be easy to get in and out of for their clients but this is the norm (at least in my area) and makes me think commissions are waaay too high.

 

 

Given you posted pics of  a street close to one of my places, and I know both of those people in the photo...

• The lease payment on that car is fully deductible
• No RE agent drives with their clients after covid- they meet them there

The #1 and #2 realtor in the area you mentioned, 1 has a Phantom (house worth about 6M)  and the other (house worth about 4.5M) drives a CGT/GT3RS. 

Last 14 years, I have sold and bought all my properties without a realtor. It is a service I really don't need, and anyone who has a 6th grade US education, can do it without them.  Just like I don't pay anyone to replace my brakes, I don't pay anyone  commission to find me houses either. The internet has changed the world.  Having said that, when I want pocket listings, and off market deals, I keep a few friends in LA/VC/SB county, where you give them a flat fee and they will feed you more information than you need. 

Cool. Thanks for making those of us who have used a realtor feel dumb. 

MotorsportsGordon said:

Actually most rich people tend to drive trucks now.

That's because you have to be rich to buy one now a days.

TheGloriousW said:

In reply to RX Reven' :

I never checked the math, but according to Consumer's Reports the break even point of buying new verses used is 10 years.

Can you expand on that please?  IS that the time you need to keep a new car to be break even with buying what?  3.3, 3 year old cars in that time?  Two 5 year old cars? One 20 year old car and pay vestal virgins to service it after a re-trim in whale penis leather?  Seriously though, I'd like to know how that's calculated and in comparison to what.  

mr2s2000elise said:

Last 14 years, I have sold and bought all my properties without a realtor. It is a service I really don't need, and anyone who has a 6th grade US education, can do it without them.  Just like I don't pay anyone to replace my brakes, I don't pay anyone  commission to find me houses either. The internet has changed the world.  Having said that, when I want pocket listings, and off market deals, I keep a few friends in LA/VC/SB county, where you give them a flat fee and they will feed you more information than you need. 

Same here, the last 20 years.

It's an insanely expensive service that's not really required. I can't believe it still exists.

One of my customers drove a GMC Yukon Denali daily. His Maserati and collection of 50s convertibles stayed home.

I asked him "Why not an Escalade?" His answer was "I'm not stupid enough to give GM an extra $20k for some Cadillac badges".

The guy who taught me about investing told me: "The average wealthy guy looks like he needs a haircut and a new pair of shoes".

Peabody said:

mr2s2000elise said:

Last 14 years, I have sold and bought all my properties without a realtor. It is a service I really don't need, and anyone who has a 6th grade US education, can do it without them.  Just like I don't pay anyone to replace my brakes, I don't pay anyone  commission to find me houses either. The internet has changed the world.  Having said that, when I want pocket listings, and off market deals, I keep a few friends in LA/VC/SB county, where you give them a flat fee and they will feed you more information than you need. 

Same here, the last 20 years.

It's an insanely expensive service that's not really required. I can't believe it still exists.

Home inspections!

Had to have one for my first house. Guy didn't tell me anything I couldn't see already.

Standing with him, looking at the open panel he says "that might be aluminum wire". I looked and said "That IS aluminum wire". 

When I started finding things after the purchase, I called him and got told "well, I can't be expected to find everything".

Biggest waste of money ever and I've never done it again.

In reply to Adrian_Thompson (Forum Supporter) :

This was said pre pandemic BTW. It was buying the same car new vs 3 or so years old and then keeping them until they are 10 years old. It included cost, financing, maintenance and residual value. 

The pandemic and moving to electric/hybrid cars may have changed everything though.

ShawnG said:

Home inspections!

Guy didn't tell me anything I couldn't see already.

Yes, but you're probably smarter than the average bear. I bet most people know little to nothing about home construction or mechanical systems.

But you're right, that service exploded in the late 80's and some of the people (I've seen) doing it are practically useless. And there's no recourse.

TheGloriousW said:

In reply to Adrian_Thompson (Forum Supporter) :

This was said pre pandemic BTW. It was buying the same car new vs 3 or so years old and then keeping them until they are 10 years old. It included cost, financing, maintenance and residual value. 

The pandemic and moving to electric/hybrid cars may have changed everything though.

 

I don't see why there would ever be a break even point so long as the used car is new enough to get the same interest rate as a new car.

Buy when the deflation curve is flattening out (three to four years old) and sell before major repairs become a significant risk (150K to 180K miles).

As I said, I buy reasonably priced new cars, take good care of them, and get out when they're 10+ years old which for me is around 225K miles.  I feel like I can safely go further than the 150K to 180K miles because I know the car hasn't been abused or poorly maintained.

Also Mazda's are generally very well made cars...I've got a 40 year old RX-7 that is absolutely road trip ready.

RX Reven' said:

TheGloriousW said:

In reply to Adrian_Thompson (Forum Supporter) :

This was said pre pandemic BTW. It was buying the same car new vs 3 or so years old and then keeping them until they are 10 years old. It included cost, financing, maintenance and residual value. 

The pandemic and moving to electric/hybrid cars may have changed everything though.

 

I don't see why there would ever be a break even point so long as the used car is new enough to get the same interest rate as a new car.

Buy when the deflation curve is flattening out (three to four years old) and sell before major repairs become a significant risk (150K to 180K miles).

As I said, I buy reasonably priced new cars, take good care of them, and get out when they're 10+ years old which for me is around 225K miles.  I feel like I can safely go further than the 150K to 180K miles because I know the car hasn't been abused or poorly maintained.

Also Mazda's are generally very well made cars...I've got a 40 year old RX-7 that is absolutely road trip ready.

I appreciate TheGloriousW filling it in, but I agree, it doesn't pass the sniff test.  There has to be a lot of other variables in there.  Like many things, it sounds like a click bait lead that has so many variables and holes as to be meaningless.  One thing that is probably the biggest decider other than age is miles.  There's a huge difference between someone who does less than 5K miles a year (both my next door neighbor and his wife), and someone who does 20K miles a year (both me and my wife independently).  Additionally people have massively different standards of what is acceptable in a car.  I recall going our to lunch with a guy yeas ago and getting in his Chrysler 300.  As he backs out of the parking spot and dives across the lot my brain is going 'berkeley, this thing must have 200K on it, everything is shot', just then he pipes up about what an amazing car it was, how at 150K miles it still feels like new.  He was oblivious to the fact every shock was totally blown out and it rattled like a babies toy. 

By the time a car is 10 years old, statistically it'll have 140k miles on it.  Every car I've had I've put all new shocks on around 100K, plus top mounts and at least end links and a tie rod end.  Often cars with timing belts need one around then, plus the sensible 'while your in there' water pumps, idlers etc.  That's either several weekends in the garage, or for 95% of people (me included these days TBH) or several $thousand to have it done.

I was talking to someone the other day who's rule is 'when the tires need replacing, it's time for a new truck'.  He's basing that on four new tires on your averagely ghastly 1/2 tone truck come in at $1,200-1,600 with mounting, balancing and disposal, which is at least a 2-3 of months payment on a new vehicle.  So that's when he trades!

My addition to the "people thought my cars meant I'm rich" story: I had two cars in college and most people who learned that were amazed. "How can you afford two cars?!" Well, they're worth less than the used civic you're driving.

I had a 91 Miata and an 87 Toyota Pickup worth about $6500 combined (based on what I sold them for later).

In reply to Adrian_Thompson (Forum Supporter) :

Yep, I spent $1,250 to put four new tires on my daughter's 2011 Kia Sportage (235/55R18) a few months ago.

For comparison, my 2019 CX-3 Touring with the preferred equipment package and fancy paint was in the garage (i.e. including TLR & shipping) for $26,000 to...the...penny.  So, just the tires were 4.8% of a whole new car.

Reven' daughter #2 will start driving this November and she'll be getting Reven' dad's 2017 Camry with all of 9,500 miles on it...Reven' daughter #1 will be getting my CX-3 which will have about 95,000 miles on it at the time and her Sportage will be traded in on something new for me (CX-30 Turbo or Tacoma TRD or Prius).  Well, the odds are very good on the CX-30 Turbo but cross shopping is fun so...

While no where near wealthy, we have two Hondas and a Toyota, so I guess we're in good company    I've met people from all walks of life, and people spend money on what they want to spend money on. Some live well below their means, some well above.  

Our Rav4 needs new tires, which will end up being about 20% of what it's worth ($5k or so).  I don't have good luck in buying new tires, I bought a set and our old Honda Odyssey's transmission blew less than 500 miles later, so I've been putting off this purchase for a bit to eek out some more life from our Rav4!

Adrian_Thompson (Forum Supporter) said:

I was talking to someone the other day who's rule is 'when the tires need replacing, it's time for a new truck'.  He's basing that on four new tires on your averagely ghastly 1/2 tone truck come in at $1,200-1,600 with mounting, balancing and disposal, which is at least a 2-3 of months payment on a new vehicle.  So that's when he trades!

I know someone who sold (not traded-in) a car before he'd emptied the free tank of gas that came with it. :)

As for the original question about what "the rich" drive, really the answer is the as everyone else.  They drive what they want to drive that is both A) within their budget and B) that they think it worth the money it costs.  Really the only difference is that A) is less of a constraint than it is for other people.

In reply to Adrian_Thompson (Forum Supporter) :

I appreciate the skepticism, but considering the source it was probably highly likely true at the time. Not true in every situation, but for the average driver. The car people at CR are professional auto enthusiasts not YouTube influencers or the like. They have much more data than any one person.

TheGloriousW said:

In reply to Adrian_Thompson (Forum Supporter) :

I appreciate the skepticism, but considering the source it was probably highly likely true at the time. Not true in every situation, but for the average driver. The car people at CR are professional auto enthusiasts not YouTube influencers or the like. They have much more data than any one person.

But what's the directionality of the break even point...i.e. a used car should be traded in when its ten years old as its maintenance costs are likely to exceed a new car loan or its OK to buy new cars so long as you keep it ten years or ???.

Not to put words into Adrian's mouth but it seems we both found the statement to be ambiguous.

In all politeness, do you remember the directionality..keeping a car less than ten years hurts who, new or used, and keeping a car more than ten years hurts who, new or used.

I imagine it's less than ten hurts new and more than ten hurts used but I don't want to make an inference.

Edit - I just read your post again and it does appear you explained the directionality...maybe I missed it or maybe you edited the post; it's all good.

In reply to RX Reven' :

This -> "its OK to buy new cars so long as you keep it ten years." It cost the same as buying a 3 year old car and keeping it until it is 10 years old. Keep the past year 10 and it just doesn't really matter anymore. Trade in your new car before year 10, and buying used would have been less expensive.

... but, of course, if a person wants to they can trade it in at its first oil change. I daily 2007 with 185k, so that's where I'm at. However, I confess, I do have a 3rd  gen. Boxster to make me look rich even though it cost me less than an Accord.

STM317 said:

I assumed it was a radwood, tongue-in-cheek kind of thing where the guy was really leaning into the '80s Ferrari owner' role that people probably project onto him when they see his car.

Actually, that might have been the case now that you mentioned it. He may have been playing it up. This was around 5 years ago and I wasn't aware of the Radwood scene at that time.

In reply to TheGloriousW :

That Boxster has probably served as a lifeboat at times allowing you to take your daily offline without having to pay a premium for quick repairs or pay for a rental.

I bought my 1983 RX-7 in October of 2017 for $4,700.  It has served as a lifeboat three times and has only needed an alternator + battery which costed a lot less than the rentals would have.

I received a serious inquiry to sell it from someone I met at a Cars and Coffee two weeks ago..he asked "how much" I said "just short of ten grand" and he replied "fine, let me know if you want to do it".

I might go for it as it's waaay easier to buy a car than sell one and I really, really want a GSL-SE Five Speed.   

In reply to TheGloriousW :

In reply to RX Reven' :

Yes, I didn't mean to imply they were wrong or lying, the issue is it's a meaningless statement without some parameters.

RX Reven' said:

In reply to TheGloriousW :

That Boxster has probably served as a lifeboat at times allowing you to take your daily offline without having to pay a premium for quick repairs or pay for a rental.

I bought my 1983 RX-7 in October of 2017 for $4,700.  It has served as a lifeboat three times and has only needed an alternator + battery which costed a lot less than the rentals would have.

I received a serious inquiry to sell it from someone I met at a Cars and Coffee two weeks ago..he asked "how much" I said "just short of ten grand" and he replied "fine, let me know if you want to do it".

I might go for it as it's waaay easier to buy a car than sell one and I really, really want a GSL-SE Five Speed.   

Yes a second car does come in handy when you want to DIY a repair.

Another thing... pre-pandemic buying a new car was WAY easier then buying a used one. Once  the car picked a person could do the rest by email. It was always apples to apples comparisons. Buying a good used on can be time consuming.

Both my siblings figure I am 'showing off' because I own 2 BMW's now. The second one I bought for equal to two of their monthly payments on their truck and SUV. 

Rich people drive cars that belong to their own company so they never have to "pay" for it.

Now that I have said that it looks like the OP link pokes a hole in my theory.  As does this link.

Dave Ramsey cars wealthy people drive