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Wow, really? I know lots of millionaires as well and they do infact drive cars in that range and higher.
The point though is not the car but in determining what group drives the market for consumable products. The lower classes are not the first on the block to get a fast computer, flat panel tv, computer, or anything else on the market. It just does not happen. Those with means help a company develop a product and pay the cost for that development. When the company is able to sell an efficiently designed and built product sales move to the larger less afluent classes.
Why does anyone need a $100,000 car or a $10,000 bike to peddle around on? The reasons for buying are very differant for the Middle class millionaires than for the lower classes. In the book you learn that more and more wealthy individuals purchase items and services that help them accomplish more in the most efficient manner. They purchase items that help them achieve their goals, make them more money, or increase their quality of life. I would asume with an electic car it could be that they have the desire to place less presure on the environment by forgoing the use of fossil fuels. Reading the book you realize that their is a completly differant mind set as to why this group seems to relate to the purchase of items and how they choose to use their money.
I might have to pick up this book. I read the Millionaire Next Door and it really does change one's outlook on wealth in this country. I know only a couple obscenely wealthy people but I DO know quite a few of the "millionaire next door" type. Growing up in Iowa, I was surrounded by farmers who "NEVER had a good year" and always complained that they were overtaxed, overregulated, seed was too expensive, diesel was too expensive, they couldn't make a damn dime, yadda yadda yadda. YET each of them ALWAYS drove a brand new Ford or Chevy pickup truck and their wife drove a new Cadillac. But NEVER did they have a good year for one of a million different reasons. My dad never made any money in the 40 years he farmed yet he just retired a couple years ago and built a new house in our small town and bought a beautiful estate in the hills of Scottsdale as a winter home for my mom and him. Never could make any money and always paid too much in taxes (according to him). I grew up around these type of middle-class millionaires and they all have different personalities but share the common sentiment that they pay too much in taxes and constantly talk about the "good ol' days" when they could make a living.
No, I mean I know one guy who collects cars and I guess he would probably spend that kind of money on a car.
I grew up in a relatively wealthy family, went to boarding school with really wealthy people, my parents are now retired and live in a coastal community that is one of the wealthiest in the country. Occasionally you would see a collector kind of car or the random obscenely expensive car but my parents drive Toyotas and while there are a fair amount of Lexus' in their community they aren't the high end models.
I'm going to take a stab in the dark and guess that this may be an East Coast vs. West Coast thing. I grew up and my family still lives on the East coast.
How do they determine they are still middle class with 7 figure net worth? Yearly income? Lifestyle? When would they start to be considered upper class?
My take on it would be the housing -- I know people with what I consider to be solidly middle-class, but because they bought their houses a long time ago in areas that have seen huge increases in value (even accounting for the housing bust) I would guess that, if one included the value of their home, they'd be considered millionaires. But unless willing to sell that house and relocate, that house isn't helping launch them into upper-class status.
Ferrari, Lamborghini, Rolls Royce offer zero financing. You pay cash and the cars are sold out each year. For some models you are placed on a waiting list. Maybe not sold to the middle class millionaire but still those of wealth are the people that buy these cars. The cost to own a Ferrari is prohibitive for those that live paycheck to paycheck. If someone were to give you one today you would need a high income to maintain the car.
I mention this because my friends it is not the lower classes that buy exotic cars. It is those of means that buy them.
This thread is so all over the place I don't even know what to comment on, or what it's about anymore...
1) Yes, one of the best ways to get rich in any capitalist system is to own a business, a successful one of course.
2) If one is lucky enough to get a job making a certain income one can earn one's way into millionaire status as well.
3) Plenty of people who are super rich by $100,000 cars and 10 million dollar homes, etc. BUT that's NOT the large part of the market economy. The middle class MASSES keep the economy going. Walmart is the world's biggest retailer, not Barney's. Ford sells more cars than Lamborghini. Home Depot gets more business , than million dollar decorators.
4) Because of the above, there are different market levels (price points) ....that make up the OVERALL economy. The luxury markets, and the mass markets. The luxury market is smaller, but you still wouldn't want to see it harmed or go away. People are still employed because of it. It does support jobs. These plenty spend plenty
(The wealthy from the Middle East, Europe and America spend BOAT LOADS of money on stuff most of us would never even DREAM of. Watch some TV specials on the REAL lifestyles of the rich and famous...wives of sheiks who ONLY buy couture, a new hand made wardrobe in Europe EVERY fashion season. Private appointments at atiliers who won't name names, and designers you never even heard of. They own yachts worth double-digit millions, more than ONE jet, household staffs of 20-30, etc.)
Then again you have PLENTY of millionaires and billionaires, and you'd never know it ...from their SPENDING, and outward lifestyle. (Warren Buffet, Duck Commanders, neighbor next door, plenty of middle America farmers, small biz owners, etc) I'd say most BILLionaires live at a higher spending rate than MILLionaires, but there are even some of them who don't spend lavishly....like those on the HGTV show MILLION DOLLAR ROOMS! (let alone houses, million dollar ROOMS, in 20-thousand sq. ft manses)
Even the Ferrari website mentions there are financing and lease programs available: FNA
Look at that, You learn something every day. I mistated the post and used old, non relavent information. So sorry. I had read in an article years back that Rolls, Ferrari, and many others did not offer finance options. Without checking I had continued to think that was the way things were still done. I was wrong. Thank you for the correction.
2) If one is lucky enough to get a job making a certain income one can earn one's way into millionaire status as well.
Yup, especially if two incomes. You get two people with solid professional jobs it isn't that hard to roll past a million dollar net worth well before typical retirement age, as long as they are saving fairly aggressively.
Wow, really? I know lots of millionaires as well and they do infact drive cars in that range and higher.
A lot of them lease their car.
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