Finish this sentence: “If I had a billion dollars, I’d drive a ______.” Did you say Lamborghini, Rolls Royce or Ferrari? Why not? With that kind of money, you could certainly afford to buy expensive, luxury vehicles. That said, it may surprise you to hear that some people who can afford any car they want are driving around in average, affordable vehicles.
A recent survey among the world’s millionaires and billionaires uncovered the remarkable truth about the type of cars they drive. In spite of their enormous bank balances, a number of very wealthy folks still drive cheap cars. Next time you are in Silicon Valley, for example, you could be sitting in traffic behind a zippy, little Acura TSX with Mark Zuckerberg at the wheel.
Although the Acura is considered a luxury brand for many of us, it’s a very modest car for one of the world’s richest people, with an estimated net worth of over $86 billion. So, is Zuckerberg the exception to the rule?
Big Names, Average Cars
As it turns out, he is in good company when you consider that the majority of the 10 richest people in the world drive inexpensive cars. Forbes has named Alice Walton, heiress to the Walmart dynasty built by her father and uncle, the wealthiest woman in the world. In keeping with her reputation of being as down-to-earth as the folks who patronize the store behind her fortune, she drives a 2006 Ford F-150.
You might argue that someone raised with money could be less likely to purchase a flashy car than say, CEO’s, who earned their fortunes through working tirelessly for decades. That would not explain why Steve Ballmer, the former CEO of Microsoft, who is purportedly worth over $70 billion, drives a Hybrid Ford Fusion.
Or why Larry Page, who co-created Google in a suburban garage and is the 7th richest person in the world, drives a Toyota Prius. Finally, the ultimate self-made man and richest person in the world, Jeff Bezos, who could buy any car ever made without putting a small dent in his $188 billion net worth, can be seen cruising around town in his Honda Accord.
What Type of Car Do You Drive?
Why are there so many wealthy people who drive average cars? Perhaps because driving expensive cars would attract unwanted attention. Many wealthy individuals become wary of showing their worth with a high-end car after becoming the focus of fraud, theft, or frivolous lawsuits. Unfortunately, there are folks out there looking to defraud others out of their money when they suspect deep pockets.
If you have already run into this problem or suspect you could be a potential target, consider taking our lawsuit exposure test. At JMV Law, we believe that knowing your risk level and taking preventative steps is the best way to protect your wealth in the long run.
FAQs
What matters more than status or the price tag is, more often than not, how safe the vehicle is. “Most of the millionaires I've worked with drive reasonable, unassuming cars,” said Zigmont. “There are a lot of Toyotas and Acuras in rich people's garages. Their focus is on a reliable vehicle, not a showy one.”
Why do millionaires not buy expensive cars? ›
For the rich, it's just not worth it. “Practicality” is a big part of it, according to Derek DiManno, the founding financial advisor at Flagship Asset Services. “While luxury cars [offer great] status symbols, many individuals prioritize functionality and value for money over flashy vehicles,” DiManno said.
Do millionaires drive expensive cars? ›
While some wealthy Americans drive luxury vehicles, an Experian Automotive study found that a whopping 61% of households making more than $250,000 don't drive luxury brands. Instead, they drive less showy cars, like Hondas, Toyotas and Fords, per Ramsey.
What vehicle is most driven by millionaires? ›
Which car brand is driven most by millionaires? Though wealthy consumers are known for buying luxury car brands like Rolls-Royce, Mercedes-Benz, Jaguar, or Porsche, you might also find them driving mainstream brands such as Honda, Toyota, and Ford.
What car does Mark Zuckerberg drive? ›
Despite his $176.7 billion net worth, Mark Zuckerberg, the billionaire founder of Facebook, is known for owning relatively inexpensive cars, with the exception of a Pagani Huayra supercar. The tech mogul is frequently seen cruising in a black Acura TSX, a compact car valued at around $30,000, according to CNBC.
What car would a rich person drive? ›
According to an Experian Automotive study cited by the Financial Times, while society's rich are more likely to buy luxury brand cars than its less well-off, 61% of people who earn more than $250,000 are more likely to be driving Hondas, Fords and Toyotas.
What car does Bill Gates drive? ›
Apart from his Porsche collection, Gates has been seen driving a variety of other luxury cars. He has been spotted driving a Mercedes S Class, a Mercedes 500SL, and a BMW 7 series. Gates is often driven around in limousines, and some sources claim he even owned a Ford Focus.
Do millionaires pay cash for cars? ›
Millionaires Avoid Car Payments
And more importantly, 8 out of 10 millionaires buy their cars with cash and don't have a car payment to worry about. In fact, research done by Ramsey Solutions found that non-millionaires are twice as likely as millionaires to have outstanding car loans.
Do rich people drive BMW? ›
The top 10 cars for $250,000-plus households include the Mercedes E-class, the Lexus RX 350 and the BMW 5 series and 3 series. Following those top four were three Hondas, a Toyota, an Acura and a Volkswagen.
Do millionaires usually drive new cars True or false? ›
How many quadruplets do you know? 8. Millionaires usually drive new cars. False— Only 23% of millionaires drive a current-year car and more than half drive a car that is more than two years old.
The authors make a big deal about the fact that 25.2 percent of millionaires have not purchased a car in four or more years, but if you look at the chart, this also shows that roughly three-quarters of millionaires drive cars that are three or fewer years old.
Which car is best for billionaire? ›
- Jeff Bezos – Honda Accord. ...
- Warren Buffett – Cadillac XTS. ...
- Larry Elisson – Lexus LFA, McLaren F1, Lexus LS600h. ...
- Mukesh Ambani – Maybach 62. ...
- Bill Gates – Porsche 959. ...
- Mark Zuckerberg – Pagani Huayra, Honda Jazz. ...
- Amancio Ortega – Audi A8, Mercedes GL. ...
- Google founders Larry Page/Sergey Brin – Tesla Roadster, Toyota Prius.
They inoculate themselves from heavy spending by constantly reminding themselves that many people who have high-status artifacts—such as expensive clothing, jewelry, cars, and pools—have little wealth. Being frugal is a major reason members of the used vehicle-prone group are wealthy.
What is the richest car of all time? ›
Rolls-Royce La Rose Noire Droptail is the world's most expensive car, priced at $30 million (Rs. 211 crore approx).
Why are some wealthy people cheap? ›
“Many wealthy individuals maintain a strict budget, tracking their income and expenses meticulously,” Donadio said. “This discipline allows them to keep their wealth growing and avoid unnecessary expenditures.”
What is the most popular car for rich people? ›
For those with a household income above $250,000, 61% choose to drive non-luxury brands like Toyotas, Fords, and Hondas. Other research, such as a study by MaritzCX, found that the Ford F-150 pickup truck was the top vehicle in the U.S. for folks earning more than $200,000 annually.
Why do millionaires drive old cars? ›
They inoculate themselves from heavy spending by constantly reminding themselves that many people who have high-status artifacts—such as expensive clothing, jewelry, cars, and pools—have little wealth. Being frugal is a major reason members of the used vehicle-prone group are wealthy.
