Where does this notion come from that wealthy people don't drive nice cars?

[Anonymous]

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Anonymous wrote:6.3 million net worth and 750k HHi early 40s. We buy cars in the 55-75k range. Trade in current cars every 4-5 years or so and add 10k down each time. Finance the rest so we have a small payment. Literally don’t notice this in our budget.

Why not drive a mid higher end / fun to drive car when it barely makes a dent?

Because some people are cheap or just think it’s brag worthy to drive a 20 year old beater. My parents were like this. We had to ride around in unsafe, embarrassing cars. But hey, at least I’ll inherit a lot of money?? I can afford nice cars, and I buy them. Doesn’t affect our budget one way or another.

I don't think these people are even cheap. I think they are cosplaying wasps.

Or not. I was taught from an early age that a car is a depreciable asset (if you can even call it an asset) and the money is better invested. So was my spouse. A car gets you from Point A to Point B at various levels of comfort, reliability and ostentation. I think there are plenty of insecure strivers here who like to flaunt their wealth (and sometimes fake wealth). That Range Rover or Porsche conveys much more about your values and priorities than my Toyota or Honda ever will.

Except many people here drive the Toyotas and Hondas precisely in order to prove a point about their values and priorities. That's the tone of this whole thread.

Or maybe we drive our Toyota's because they are deeply reliable cars that run well and require very little upkeep. I've had mine for 20 years and it will not die. As a result, my brand loyalty for this car is insane. I'm not "proving a point." I just want a simple car that I can depend on.

That is not how you or the other responders phrased it. It is partly about signaling, even if of course you like the car. When a millionaire is driving an ancient car with some major safety issues (not sure if that was you), they're doing it to prove something, to the detriment of their safety.

DP here. Does that bother you? Who cares?

I’m a PP. Yes, it clearly bothers that poster because it forces them to do some navel gazing about their own choices and values. They like to use the “safety” straw man to draw a distinction here for one PP’s comment. But that’s a red herring. My 20 year Honda is safe and reliable. It doesn’t have the latest side and rear sensors but does very well in crash tests. I can’t say the same about cars like the Porsche 911/930. And guess what? I’m saving a ton on maintenance, insurance, and loans that I get to bank for retirement and inheritance for my kids. They can peacock all they want but I for one am not impressed.

I'm that poster and I've never paid over 25k for a car, so you got me entirely wrong. I think you are peacocking actually.

Do you even understand the term peacocking? Because your statement suggests otherwise. Your reading comprehension is also terrible.

I am not the PP, but you absolutely can "show off" in a beater. Showing off what a virtue signaler you are.

Please PP, tell me how you do this. Do you loudly lament what a beater you have or drop it in every conversation? I’m confused how this is a thing.

[Anonymous]

Anonymous wrote:I've never heard this notion. In fact, it is a self-destroying notion as only wealthy people have the financial resources to buy so-called "nice" cars.

See. That’s where you’re wrong. Entry level luxury models are bought by LMC administrative assistants a dime a dozen. Same with pricier models so long as you can afford the low, low down payment and lease. These folks are by far the biggest fakers. It’s sad really when you go to a dealership and see them. Just because you have the money to “buy” the car doesn’t mean you have the money to own it. This also true of houses and lots of high cost items that used to signal affluence before credit was democratized.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I've never heard this notion. In fact, it is a self-destroying notion as only wealthy people have the financial resources to buy so-called "nice" cars.

See. That’s where you’re wrong. Entry level luxury models are bought by LMC administrative assistants a dime a dozen. Same with pricier models so long as you can afford the low, low down payment and lease. These folks are by far the biggest fakers. It’s sad really when you go to a dealership and see them. Just because you have the money to “buy” the car doesn’t mean you have the money to own it. This also true of houses and lots of high cost items that used to signal affluence before credit was democratized.

Well...I'm one who drives an old car to the ground and on that side of this argument, but reading this, you do sound like the snobby people that PPs are deriding. You really don't know this about people you randomly see at a dealership. All I know is that *I* save a lot by not upsizing my house and car. I'm not sure what everyone else can do or not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I've never heard this notion. In fact, it is a self-destroying notion as only wealthy people have the financial resources to buy so-called "nice" cars.

See. That’s where you’re wrong. Entry level luxury models are bought by LMC administrative assistants a dime a dozen. Same with pricier models so long as you can afford the low, low down payment and lease. These folks are by far the biggest fakers. It’s sad really when you go to a dealership and see them. Just because you have the money to “buy” the car doesn’t mean you have the money to own it. This also true of houses and lots of high cost items that used to signal affluence before credit was democratized.

Are you going to the Mercedes dealership in your beat up Honda and sitting across the street with popcorn watching the poors lease their cars so you can have a good laugh about how superior you are? The classism in some of these posts is disgusting.

[Anonymous]

Anonymous wrote:I think your premise began with Sam Walton, founder of Walmart, who drove an old pick up truck, I believe. Also, there is plenty of "old money" that live off of trusts that are specifically designed to not allow such purchases or the trusts are no longer spinning off as much income due to dilution over generations.

+1 Warren Buffet currently drives a 2014 Cadillac despite being worth billions. Jeff Bezos drove around in a Honda Odyssey even after Amazon was worth billions (but this was before he went Hollywood and married wife number 2 and got a $500mn yacht.)

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think your premise began with Sam Walton, founder of Walmart, who drove an old pick up truck, I believe. Also, there is plenty of "old money" that live off of trusts that are specifically designed to not allow such purchases or the trusts are no longer spinning off as much income due to dilution over generations.

+1 Warren Buffet currently drives a 2014 Cadillac despite being worth billions. Jeff Bezos drove around in a Honda Odyssey even after Amazon was worth billions (but this was before he went Hollywood and married wife number 2 and got a $500mn yacht.)

Buffet paid over 6 million for a private jet well before he bought that Cadillac. It really tells you very little.

[Anonymous]

It is a boomer-ism and very much an 80s and 90s-ism to drive a crummy car. Look at movies like "Something About Mary" (1998). Mary drove a new Dodge Durango; a fine SUV but certainly not flashy or luxury. The male characters all drove crummy old Chrysler, Chevy, and Ford economy cars. It was normal to drive crummy cars when the cost of living was cheap. Now-a-days it's unheard of for a successful family to have any clunkers in the driveway.

Source:
https://www.imcdb.org/m129387.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think your premise began with Sam Walton, founder of Walmart, who drove an old pick up truck, I believe. Also, there is plenty of "old money" that live off of trusts that are specifically designed to not allow such purchases or the trusts are no longer spinning off as much income due to dilution over generations.

+1 Warren Buffet currently drives a 2014 Cadillac despite being worth billions. Jeff Bezos drove around in a Honda Odyssey even after Amazon was worth billions (but this was before he went Hollywood and married wife number 2 and got a $500mn yacht.)

Jeff Bezos has something like a $30M car collection. Would you stop with this please?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I've never heard this notion. In fact, it is a self-destroying notion as only wealthy people have the financial resources to buy so-called "nice" cars.

See. That’s where you’re wrong. Entry level luxury models are bought by LMC administrative assistants a dime a dozen. Same with pricier models so long as you can afford the low, low down payment and lease. These folks are by far the biggest fakers. It’s sad really when you go to a dealership and see them. Just because you have the money to “buy” the car doesn’t mean you have the money to own it. This also true of houses and lots of high cost items that used to signal affluence before credit was democratized.

OK, so all the credit card and lending companies are going bankrupt because they're lending money to people who can't afford to "own" their cars?

The people who buy houses in McLean and Chevy Chase and North Arlington are "fakers" then? Where do the actual rich people live? Daly City?

[Anonymous]

Anonymous wrote:It is a boomer-ism and very much an 80s and 90s-ism to drive a crummy car. Look at movies like "Something About Mary" (1998). Mary drove a new Dodge Durango; a fine SUV but certainly not flashy or luxury. The male characters all drove crummy old Chrysler, Chevy, and Ford economy cars. It was normal to drive crummy cars when the cost of living was cheap. Now-a-days it's unheard of for a successful family to have any clunkers in the driveway.

Source:
https://www.imcdb.org/m129387.html

I went down a rabbit hole. 2000s pop culture seemed to help make new luxury cars more mainstream.

Final season of The Sopranos (2007) the dad is driving a new Cadillac Escalade, mom is driving a new Porsche Cayenne, son is driving a new BMW M3, and daughter is driving a new Lexus IS.

Mean Girls (2004) the wealthy cool mom drives a new BMW X5, one of the girls drives a new Cadillac Escalade, and Regina drives a new Lexus SC convertible.

Keeping up with the Kardashians (2007-2021) famously made the Land Rover Range Rover and especially the Mercedes G-Wagon their unofficial cars.

The OC (2003-2007) Seth’s parents drove a new Land Rover Range Rover and BMW 7-Series, the main girls drove new BMWs and a new Ford Mustang convertible, Seth's grandpa drove new Aston Martins and Bentleys.

[Anonymous]

College in the early 1990s, sorority and fraternity houses were full of totally normal, often several years old crummy economy cars. Maybe a couple of kids had a new BMW or something. Nowadays the same Greek houses are full of $50,000+ and even $80,000+ new cars. Night and day. Times have changed.

[Anonymous]

The saturation of new luxury cars aligns with widening executive and top professional pay ratios. CEO-to-worker compensation ratio was roughly 34-to-1 in 1980, now it is over 300-to-1. CEO pay increased over 1,000% from 1978 to 2020, while typical worker pay grew by only ~18%. The rich are richer than ever and live in increasingly exclusive communities amongst each other, of course they aren't going to slum it in downscale older vehicles.

[Anonymous]

Who is driving all of those sweet Dodge Chargers? Tech and finance bros?

[Anonymous]

What if you own a Range Rover and a beater? Do you get looked down upon by both groups?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I've never heard this notion. In fact, it is a self-destroying notion as only wealthy people have the financial resources to buy so-called "nice" cars.

See. That’s where you’re wrong. Entry level luxury models are bought by LMC administrative assistants a dime a dozen. Same with pricier models so long as you can afford the low, low down payment and lease. These folks are by far the biggest fakers. It’s sad really when you go to a dealership and see them. Just because you have the money to “buy” the car doesn’t mean you have the money to own it. This also true of houses and lots of high cost items that used to signal affluence before credit was democratized.

What are you doing at luxury dealerships? Shouldn’t you only be at used Honda lots?

Anyway, I’m sorry you can’t afford a nice car.