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Old 02-12-2014, 02:31 PM
 
Location: Atlanta (Finally on 4-1-17)
1,850 posts, read 2,347,034 times
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I do a lot of consulting for owners on Mid-sized businesses. I get to visit them and "kick tires" as it relates to checking out their business. We often times have lunch or dinner together.

One thing I noticed about a lot of the guys I work with is, many of them drive high quality American brands in terms of automobile. GMC-Tahoe is a truck that I've noticed many of the business owners I work with drive.

This crowd is usually from the Boomer generation and often times male. Another car I see is the Lincoln Town car or Crown Vic. Very rarely do I see them driving-BMW,Merc, Lexus, Audi......


I'm not saying this is 100% the case but it's what I've noticed. My neighbor is a very successful owner of an 30y/o aluminum window company($15 mill/annual sales. He started from scratch)....wife drives a Camry and he drives the old Crown Vic......they live in a BIG ASS, beautiful Victorian. :0)

Another couple I know have multiple successful businesses, he drives a CLEAN 1996 Blazer, wife drives a PT Cruiser.


I've always been fascinated by the "quiet wealthy" people.

Last edited by Rocco Barbosa; 02-12-2014 at 02:57 PM..
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Old 02-12-2014, 04:25 PM
 
635 posts, read 556,702 times
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I've seen it myself. People that own companies like to buy value. So they buy cars that are a good value, hire people offering a good value, etc. It's also about keeping a low profile. The owner doesn't want to show up to work in a luxury vehicle. That will just get people asking for raises and thinking of ways to get money out of the rich guy. So it's a combination of these things, in my opinion.
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Old 02-12-2014, 04:30 PM
 
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Quote:
That will just get people asking for raises and thinking of ways to get money out of the rich guy. So it's a combination of these things, in my opinion.
I think this is the real reason... lol. A lot of these guys have back up lambos.
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Old 02-12-2014, 04:51 PM
 
Location: Atlanta (Finally on 4-1-17)
1,850 posts, read 2,347,034 times
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Quote:
Originally Posted by jaekn View Post
I think this is the real reason... lol. A lot of these guys have back up lambos.

I doubt it.....believe it or not, there are lots of people out there with money that are not into lavish lifestyle items. Older, conservative guys are just as happy driving a Ford f150.
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Old 02-12-2014, 04:56 PM
 
Location: Tyler, TX
15,194 posts, read 17,686,126 times
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Pick up a copy of The Millionaire Next Door, by Thomas J. Stanley and William D. Danko. It touches on this exact subject in the first chapter or two.

A friend of mine is a successful attorney in southern California. He's got an older (but clean) Lexus that he drives when he's going to be meeting a client, but his daily driver is a beat-up old (late '80s or early '90s) pickup truck. He could certainly afford a brand new luxury car if he wanted one, but what's the point?
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Old 02-12-2014, 08:23 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
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True, around here Bill Gates drives a Ford Focus, Steve Balmer drives a Fusion Hybrid. I'm sure they have something more interesting in their garages, though.
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Old 02-12-2014, 09:15 PM
 
12,654 posts, read 12,071,712 times
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Quote:
Originally Posted by Rocco Barbosa View Post
This crowd is usually from the Boomer generation and often times male. Another car I see is the Lincoln Town car or Crown Vic. Very rarely do I see them driving-BMW,Merc, Lexus, Audi......
More have to do with the generation than if they are a business owner or not.

Probably most any business owner into anything to do with the construction industry is going to drive a truck, and some of those trucks, heck many, go upwards $50k or more, even the base model of many trucks meet or exceed the costs of the lower end and most popular sold Audi's, BMW's.

As for anyone else, they may not find value in displaying their wealth through a car, or actually like the car they did by, but many times they will display their wealth through other means.

The business owners I know of (whether personally or know they own a business) drives a Prius, a few year old suburban, Bentley, Ferrari (two different ones), a van, a mini van, a 2000's super duty, an old Chevy truck, a new GMC truck, and maybe some others I not think of right now. Only a few of these business owners are millionaires, most of them do not make more than middle class type pay, and some are close to poverty.
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Old 02-13-2014, 12:51 PM
 
Location: North Idaho
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People who are successful don't put a lot of money into non-productive, value losing items. An expensive car is a waste of money that is better invested elsewhere.

I would guess that the majority of business owners here drive pickups. They use that vehicle for work as well as to get around. A $50,000 pickup that is used to haul supplies for your business is not the same cost as a $50,000 sports car that is only useful for showing off.

I have 2 vehicles. A 1982 Blazer that I use when the roads are bad, and a 1996 cargo van that I use to haul supplies and my shopping, pull my travel trailer, and haul my dogs around.

Those cars work just fine. I don't need to waste $30,000-$80,000 on something that is just a shiny toy.

I suspect that the really expensive sports cars are all bought by new money: movie stars and sports stars. People of wealth generally don't like to draw that sort of attention to themselves.
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Old 02-13-2014, 01:05 PM
 
Location: NYC
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I used to own expensive cars like my Audi S4, once I started running a business I got rid of it. I just don't like my money sit on the side on a car that loses value so fast. I buy Toyotas and Subarus because those retain value and sometimes they gain value due to their rarity.

Had an old Subaru that I bought cheap for $2500 and it went up in value sold for $4k.

Luxury cars loses value the most, a New BMW out of showroom can cost $40k but once you drive it for 6 months it drops to $28k and after 2 years it goes for $17-18k and after 5-6 years it's worth maybe $9-10k

People who manage their wealth well do not like losing positions.
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Old 02-13-2014, 01:18 PM
 
Location: All Over
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not sure if you've read the book millionair next door but thats the theme of the book. millionaires are rich because they value money and dont spend it frivilously, that carries over into all areas of your life. generally teh people driving the bmw, mercedes, are the ones who cant really afford it but want the impression they can. like you said i find most well to do who aren't rich will drive a honda accord nad not a bmw 525.
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