How much Does an Average Millionaire Spend on Car?

Well, you are going to be Disappointed……!!!!!

According to the study done on literally thousands of Millionaire household in USA, the study shows that more than 85% of the Millionaires spend not more than 1% of their Total Net worth behind buying a car.

So it means that is someone has a net worth of $ 1 Million than he will buy a car worth not more than $ 10,000 and if someone’s net worth is $ 10 Million that he will buy a car not more than $ 1,00,000. This stats applies to 85% of the Millionaires in USA.

In fact, according to the study, many millionaires drive even a second hand car. And several millionaires drive a car that is more than 5 years old model. Than what’s the logic behind buying a second hand car?

Well, Because the real millionaires think that the car is a depreciating item. And they only spend their money behind accumulating appreciating assets only such as stocks, bonds, gold, mutual funds, businesses, real estate…etc… Another logic is that, Millionaires think that a newly bought car will loose more than 60% of its value within first 4 years from you buy. So instead of buying a new car, why don’t buy 2-3 years old car because the previous owner has already suffered a great financial loss.

Now, you will ask that, than who are those people who drive these expensive cars? Why there are so many expensive cars there in any major city? Well, these are basically upper middle class people also known as Consumer Class. These are not really rich people. These are the people who spend more than they earn. These are the people who can buy a car as high as 90% of their Net Worth. These are not actually rich people. They just look rich because they have bought a luxurious car with borrowed money (Car Finance).

So understand that, who are the true millionaires in the economy and you will understand that which car they drive and how much they spend behind it…!!!