About 37% of millionaires buy used cars, and fewer than 25% drive current-year models—most prefer practical brands like Toyota, Honda, and Ford over luxury vehicles.
Most Millionaires Don't Drive Luxury Cars
Pop culture tells us millionaires cruise around in Ferraris and Bentleys. Reality? They're more likely pulling into Costco in a three-year-old Toyota Camry.
Research from the landmark study The Millionaire Next Door reveals that about 37% of millionaires buy used cars. Even more surprising: fewer than 25% drive a current-year model. These aren't people pinching pennies out of necessity—they simply don't equate wealth with flashy depreciating assets.
The Honda Accord Millionaire
When researchers analyzed what millionaires actually drive, luxury brands didn't dominate the list. The top choices were Toyota, Honda, and Ford. BMW came in fifth, and only about a quarter of millionaires drove any luxury brand at all.
An Experian Automotive study found that 61% of households earning over $250,000 annually skip luxury brands entirely. They're buying practical vehicles that hold value and don't scream "rob me."
The Real Wealth Formula
Here's the kicker: 69% of millionaires never averaged a six-figure household income. One-third never had a single year with six-figure earnings in their entire careers. So how did they build wealth?
By not buying new cars every two years. By choosing the reliable Subaru over the status-symbol Mercedes. By understanding that a car is transportation, not an investment or identity statement.
The most wealth-efficient group—dubbed "Used Vehicle Prone Shoppers"—makes up about 20% of millionaires. This segment is exceptionally productive at transforming income into wealth, precisely because they avoid the massive depreciation hit of new luxury vehicles.
Breaking the Cycle
The average new car loses 20-30% of its value the moment it leaves the lot. For a $60,000 luxury SUV, that's $12,000-$18,000 evaporated in minutes. Meanwhile, that three-year-old Toyota? Already took the depreciation hit for the previous owner.
Millionaires understand something crucial: looking rich and being rich are often opposites. The neighbor with the new Escalade in the driveway might be drowning in payments, while the couple with the paid-off Honda has a seven-figure investment portfolio.
It's not about being cheap—it's about directing money toward assets that grow rather than depreciating metal boxes. That's how you actually build wealth, one practical car purchase at a time.