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Millionaires Buy Toyotas

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Arroyo, Dec 23, 2006.

  1. Arroyo

    Arroyo Member

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    MILLIONAIRES BUY TOYOTAS

    Millionaires spend their money smarter than other people and don't buy into luxury brands

    "The Millionaire Next Door," a best-seller book that showed millionaires spend their money smarter than other people, recently marked its 10th anniversary. The book by Thomas J. Stanley and William D. Danko, subtitled "The Surprising Secrets of America's Wealthy," was published in 1996. Gregory Karp, a personal finance writer for The Tribune Company says the striking and profound findings revealed in that book as true today as they were then - especially when it comes to spending money. And rather than spending it on a BMW 7-Series, they are more likely to be found spending it on a Prius or other inexpensive Toyota.

    "The book showed that people with average, steady jobs can become millionaires over their lifetimes - that most millionaires are made, not born. Indeed, 80 percent of millionaires are first-generation rich, the authors found. They are modest. In fact, they might live next door."

    During a conversation with Karp, Stanley talked about common spending traits of millionaires a decade ago and in his current research, which will be explained in his next book, which has the working title "Looking Rich in America." Stanley's most recent research for his coming book is evidently about brands that wealthy people use. "There are a lot of millionaires buying stuff at Wal-Mart. They don't have a problem with buying, maybe, socks or underwear there or at a Costco or Sam's Club. Men's Warehouse is selling them a lot of suits, I can tell you that," he told Karp.

    Evidently, the wealthy don't drive away wealth. The No. 1 make of car owned by millionaires in 1996 was Ford. Today, it's Toyota, according to Stanley's new study. "Luxury brands do not top the list, and many millionaires, 37 percent in 1996, bought used cars," reports Karp. "There's certainly something about buying used cars," Stanley said. "Today, they're a little more likely to buy new cars. But what they'll do is buy a $22,000 Toyota and keep it a long time."

    "What's interesting about spending is that everybody thinks all the millionaires in America have BMWs. Even among the highest income levels, about 60 or 70 percent have never owned a BMW," he said. "I think BMW is a great car. I'm a car guy. But I won't buy one because there is a relationship between wealth and how much people spend for cars. There's no doubt about it. It's a significant relationship."

    Stanley told Karp that the biggest thrill he ever had came a decade ago when "The Millionaire Next Door" approached No. 1 on the New York Times' best-seller list. To celebrate, he went out and bought a Toyota 4Runner. The vehicle is still in his garage. "It has 140,000 miles on it," he said. "I'll never own a BMW or Mercedes or Rolex because ... I know how many people who are not wealthy at all but have the glitz. It says nothing about your inspiration, your wealth or anything else."

    - Back Seat Driving, December 22, 2006

    http://lacar.com/modules.php?name=News&amp...cle&sid=729
     
    #1 Arroyo, Dec 23, 2006
  2. JackDodge

    JackDodge Gold Member

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    The only guys around here who buy BMWs think that it will help them get girls. I know some people who are very rich and live in very big houses in exclusive areas but you wouldn't know it by what they drive. They drive older American cars. What I love about the Prius is that crosses so many income levels and makes it difficult for those who actually try to figure out what one is worth by their car.
     
    #2 JackDodge, Dec 26, 2006
  3. RobertG

    RobertG New Member

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    <div class='quotetop'>QUOTE(Arroyo @ Dec 23 2006, 12:44 AM) [snapback]365957[/snapback]</div>
    A co-founder of a successful software comany where I'd worked drove a 1984 Honda for the longest time. He finally got a new car a couple of years ago. Yes, it was a Prius.
     
    #3 RobertG, Dec 26, 2006
  4. TonyPSchaefer

    TonyPSchaefer Your Friendly Moderator
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    I saw "The Millionaire Mind" on the bookshelves not long ago. From the same authors, I believe.

    I have promoted "The Millionaire Next Door" ever since I read it many years ago. At that time, my finances were a wreck. I had little-to-no savings and no financial future. Within reading the book all that changed. I purchased Microsoft Money and started tracking every penny, categorizing every purchase and eliminating the unnecessary ones. It became very clear to me that once you spend money in order to prove that you have money you no longer have the money.

    If you haven't read TMND I highly recommend it. I know that it has been mentioned in several threads here on PC. It's one of the books I reread every year whether I feel like it or not. It help keep me in check and reminds me of the differences between "rich" and "wealthy."
     
    #4 TonyPSchaefer, Dec 26, 2006
  5. Stev0

    Stev0 Honorary Hong Kong Cavalier

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    I wouldn't consider myself to be wealthy, but I certainly could afford to buy just about any car I want. And the car I wanted was a Prius.

    Back when I worked in Silicon Valley, the founder of the company was a multi-billionaire (yeah, with a "b") and he drove this POS car that he bought when he was a college student.
     
    #5 Stev0, Dec 26, 2006
  6. Pinto Girl

    Pinto Girl New Member

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    <div class='quotetop'>QUOTE(TonyPSchaefer @ Dec 26 2006, 12:26 PM) [snapback]366725[/snapback]</div>

    Sage advice; thank you. We, as Americans, are -- generally speaking -- spending money to prove to each other that we have money, I think.

    I'm reading a biography of Benjamin Franklin and have been struck how Colonial America was a primarily middle class working society...where anyone with the will to work hard and innovate might succeed, and whose population was characterized by, for example, wearing clothes of a less ostentatious nature than their Continental counterparts.

    My, how things have changed, and how far we've come from our own ideal!!
     
    #6 Pinto Girl, Dec 27, 2006
  7. burritos

    burritos Senior Member

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    <div class='quotetop'>QUOTE(Pinto Girl @ Dec 27 2006, 08:26 PM) [snapback]367456[/snapback]</div>
    What is the definition of a millionaire? I mean, does it count if you have a million dollars of equity in your home but have less than a thousand dollars in your savings account?

    Are there any on this board?
     
    #7 burritos, Dec 28, 2006
  8. Pinto Girl

    Pinto Girl New Member

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    I don't know, but I can tell you that a million dollars sure ain't what it used to be!

    I think significant LIQUID assets might qualify one, in my opinion.

    Like the ads say, "My house is worth one million dollars" is NOT a retirement strategy.
     
    #8 Pinto Girl, Dec 28, 2006
  9. TonyPSchaefer

    TonyPSchaefer Your Friendly Moderator
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    The definition of a Millionaire used in The Millionaire Next Door is someone who has a net worth exceeding one million dollars. Yes, that would include the house, the cars that you own, your stock, 401k, savings and checking accounts, et al.

    Here's a clip:
    Net worth is defined as the current value of one's assets less liabilities (exclude the principle in trust accounts). In this book we define the threshold level of being wealthy as having a net worth of $1 million or more.
    http://www.washingtonpost.com/wp-srv/style...irenextdoor.htm

    Are there any on this board? I don't know.
     
    #9 TonyPSchaefer, Dec 28, 2006
  10. Stev0

    Stev0 Honorary Hong Kong Cavalier

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    <div class='quotetop'>QUOTE(TonyPSchaefer @ Dec 28 2006, 02:37 PM) [snapback]367734[/snapback]</div>
    If there are any, do you think they'd admit it?
     
    #10 Stev0, Dec 28, 2006
  11. burritos

    burritos Senior Member

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    <div class='quotetop'>QUOTE(Stev0 @ Dec 28 2006, 02:54 PM) [snapback]367755[/snapback]</div>
    Isn't this board anonymous? People have reported their occupation.
     
    #11 burritos, Dec 28, 2006
  12. TonyPSchaefer

    TonyPSchaefer Your Friendly Moderator
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    I'm <strike>not going to</strike> wouldn't admit it. :)
     
    #12 TonyPSchaefer, Dec 28, 2006
  13. Stev0

    Stev0 Honorary Hong Kong Cavalier

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    <div class='quotetop'>QUOTE(Stev0 @ Dec 28 2006, 02:54 PM) [snapback]367755[/snapback]</div>
    Well, this answers THAT question!
     
    #13 Stev0, Jan 14, 2007
  14. jayman

    jayman Senior Member

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    <div class='quotetop'>QUOTE(TonyPSchaefer @ Dec 26 2006, 12:26 PM) [snapback]366725[/snapback]</div>
    My parents lived their lives that way long before the book came out. I also have lived my life that way. I just refuse to be tied down by indentured servitude to a mortgage co, Visa Inc, etc.

    My parents rarely bought new cars, and always kept them +10 years, until they retired in 1984. Then they splurged a bit, and why not, they worked all their lives for it.

    I'm amused to hear people with incomes about my level, and higher, P&M'ing about how much their mortgage, car payments, furniture payments, Visa minimum payments, etc are. Nobody forces you to get strung up by the short and curlies to live a certain "lifestyle."

    BTW I define my "lifestyle" as "cheap cranky bachelor." Works for me.
     
    #14 jayman, Jan 14, 2007
  15. Tideland Prius

    Tideland Prius Moderator of the North
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    #15 Tideland Prius, Jan 15, 2007
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