Here's another post in our series on the learnings from the book The Millionaire Next Door. A quote from page 112:
How do millionaires go about acquiring motor vehicles? About 81 percent purchase their vehicles. The balance lease. Only 23.5 percent of millionaires own new cars. Most have not purchased a car in the last two years. In fact, 25.2 percent have not purchased a motor vehicle in four or more years.
Not much surprise here. Millionaires buy cars and drive them forever. This is what I do as well. The last two cars we got rid of were 10 and 14 years old respectively.
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This is ENTIRELY misleading on so many levels -especially this statement "Only 23.5 percent of millionaires own new cars." Having worked for a few millionaires I can personally vouch that you are correct; millionaires don't buy their cars, they have their companies do it for them.
The last 6 millionaire executives I worked around had company Lexus, Mercedes and other vehicles assigned to them: BRAND NEW. Often the vehicles are leased but others choose to buy.
Posted by: Rich Slick | November 03, 2006 at 11:07 PM
Rich Slick,
The information came from the book, which is an interview with many millionaires. I guess your personal experience is different in this case, but overall I'd expect the book to be accurate.
Posted by: Jon | November 06, 2006 at 01:55 AM
Rich -- Yep, what Jon said.
Read the book and you'll find out that the high-flying millionaires you describe are not the average millionaire.
Posted by: FMF | November 06, 2006 at 07:37 AM