Why Half Of All U.S Millionaires Drive A Used Car
Many people imagine that millionaires drive lavish cars such as Ferrari’s, Lamborghini’s and Bentley and some wealthy individuals do drive these type of autos. However, the overwhelming majority of U.S millionaires are actually more low-key and many drive downright humble cars.
Assets Instead Of Liabilities
Millionaires know that assets are significantly more valuable than liabilities. An asset is anything that will continue to make you money such as an investment property, a mutual fund or a stock portfolio. A liability on the other hand actually costs money. An exotic car is considered a liability because it certainly doesn’t make you money; on the other hand it usually requires a significant amount of money in order to maintain, service and insure. Individuals who are smart with money prefer to have as many assets and few liabilities as possible.
Used Cars Depreciate Less
A new car will depreciate the second you drive it off the lot plus it will depreciate much faster versus a used car. Depreciation tends to occur much faster during the first year of ownership with new autos. If you buy a $5,000 car from a used dealership such as Enterprise Car Sales, it wouldn’t matter much if it did depreciate eventually due to the low cost of the car. Savvy buyers can save even more money buy paying in cash or obtaining financing on their own through their credit union or personal bank. Interest rates obtained through private financing tends to be significantly lower.
Millionaires And Their Cars
One prime example of an extremely wealthy individual with a humble car is Sam Walton, the founder of Walmart. He has actually surpassed the millionaire mark and reach the elusive billionaire status. Despite the fact that he’s wealthy enough to drive any car of his choosing he chooses to drive a used pick up truck.
The bottom line is that most millionaires have accumulated wealth during their lifetimes due to smart money management skills which means leveraging their money in order to build even more wealth. It’s nearly impossible to fund new projects and businesses if all of your funds are tied up in super expensive cars and maintaining a lavish lifestyle.
The bottom line is that it makes sense financially to think of a car as a means to get you from point A to point B. It doesn’t make sense to buy an exorbitantly expensive new vehicle if your goal is to build wealth.
Written by Jacqueline Starz – Would you like to become a millionaire one day? Buying a modest car such as a used Ford Explorer which is affordable and fuel efficient will enable you to fund new business opportunities with all the cash you will save.