Sometimes you think if you were a millionaire, you'd buy the brand new car you've always dreamed of. A lot of millionaires do that, but a significant percentage continue to buy used cars even after they've become wealthy. Why do they make that choice?
The People You'd Never Suspect Are Millionaires
The book The Millionaire Next Door discusses the habits of wealthy people who blend in with middle-class society so well that their neighbors never realize they have a millionaire in their midst. One of those habits, as noted by authors Thomas Stanley and William Danko, involves car buying. About one-third of these wealthy individuals buy used vehicles, although they could certainly afford the newest models.
A large percentage of that one-third—representing 20 percent of all the millionaires next door—engages in aggressive shopping to make sure they get the best deal.
These rich people might purchase the car of their dreams, or they might choose something more ordinary. Either way, they save a great deal of money by getting it used. This helps them maintain their net worth, which they can use for experiences and purchases they consider to be more important aspects of an abundant life.
Self-Made Millionaires
Author and business coach Brian Tracy talks about habits and characteristics of people who generated their own fortunes. Frugality is a primary trait. Tracy says most of these individuals tend to buy vehicles that are around two years old. Doing so saves them thousands of dollars, and they still get a car that's in excellent shape.
Concluding Thoughts
You might have a hard time imagining accumulating a million bucks through your own hard work, frugality and regular contributions to savings. But that's what many people have done. They understand the value of money because they've put forth time and effort in accumulating it. They don't like the idea of frittering it away on vehicles that depreciate by 25 percent within the first year and that lose nearly half their value after three years.
If you can't afford a brand new vehicle yet, rest assured that you're in good company buying a used car or truck (from dealerships like Kings Quality Auto Sales). As you gradually build up your savings in the form of bank accounts, stock investments and real estate, you may decide that you don't ever need to buy a new car. You're joining the ranks of self-made millionaires and people who nobody suspects have that kind of wealth tucked away.
Share1 June 2015
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