{"id":1989,"date":"2012-08-09T19:52:09","date_gmt":"2012-08-10T02:52:09","guid":{"rendered":"http:\/\/www.marketriders.com\/blog\/?p=1989"},"modified":"2016-12-21T07:30:56","modified_gmt":"2016-12-21T15:30:56","slug":"which-cars-do-rich-people-drive-cheap-ones","status":"publish","type":"post","link":"https:\/\/www.marketriders.com\/investing\/which-cars-do-rich-people-drive-cheap-ones\/","title":{"rendered":"Which Cars Do Rich People Drive? Cheap Ones"},"content":{"rendered":"

Which cars do rich people drive? A recent study found that the answer is: cheap cars, hands down. It’s worth asking, who\u2019s\u00a0driving your wealth around<\/a>, you or the car dealer?<\/p>\n

It might surprise you to learn that rich Americans, people who could pretty easily buy any make or model they like, tend to drive inexpensive cars. A study by car pricing site TrueCar<\/a> found that eight of the 10 best-selling autos in the country\u2019s 10 wealthiest ZIP codes averaged less than $40,000.<\/p>\n

\"Which<\/a><\/p>\n

Even when it comes to luxury, which cars do rich people drive? Not the ones you might think.<\/p>\n

The two outliers were luxury makes, Mercedes and BMW, but the models chosen were middle-of-the-line for each \u2014 the Mercedes E Class at less than $50,000 and the BMW X5 SUV at just over $56,000. Both models have higher-end versions that top six figures, fully loaded. And rich people avoid them. (How do you think they stay rich?<\/a>)<\/p>\n

Five of the top 10 cars bought by America\u2019s richest are made by Honda or Toyota, and two of those models were the lower-priced Accord and Camry, models more commonly associated with grandmothers and starting-out college grads.<\/p>\n

Knowing which cars rich people drive matters. The takeaway is clear: Your money should work for you, not for the salesperson. If you buy a car beyond your means and, worse, finance that pricey ride, you are throwing good money after bad.<\/p>\n

Exactly the same thing happened during the housing boom. Far too many middle- and lower-income buyers threw borrowed money at real estate, then compounded the error with expensive upgrades throughout. Granite countertops, stainless-steel appliances, fancy pools and outdoor decks, usually bought with illusory home equity loans.<\/p>\n

Very much the same thing happens on Wall Street. Constant TV advertising sells the idea of the upwardly mobile investor, the smart young thing (actually, a poorly paid model) sitting behind multiple computer screens, breezing through the trading day in a spacious, well-appointed home. A nice illusion.<\/p>\n

Behind the fancy charts and blinking screens is a grinning salesman. Click<\/em>, commission. Click<\/em>, another. Keep on trading, he says with a smile, you can win this game.<\/p>\n

Which cars do rich people drive…to the bank<\/h2>\n

In reality, you can\u2019t. The research shows that nobody can, over time. The biggest and most well-run investment funds do not trade compulsively. They carefully watch costs. They manage risk by diversifying and rebalancing<\/a> in an orderly fashion. They have, in short, an investment policy. Not a strategy, not a trade, but a serious, long-term plan.<\/p>\n

Like the rich American in the paid-up Camry, they smile and glide by the fray trying to keep up appearances. Asking which cars do rich people drive, to them, is a silly question.<\/p>\n

They know which cars, and they have the investment game in the bag, too. You should do the same<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Which cars do rich people drive? A recent study found that the answer is: cheap cars, hands down. It’s worth asking, who\u2019s\u00a0driving your wealth around, you or the car dealer? … Read more →<\/span><\/a><\/p>\n","protected":false},"author":8,"featured_media":1999,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"yoast_head":"\nWhich Cars Do Rich People Drive? Cheap Ones | MarketRiders.com<\/title>\n<meta name=\"description\" content=\"Which cars do rich people drive? 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