61% of people making over $250k/yr drive a Honda, Toyota or Ford

The millionaire next door

Sorry you disagree! It was a slightly better driving experience. Maybe you just love the prestige? I guess that might make someone value a luxury car more. I honestly don't care what other people think. So 10% is my experience. My Honda does all the things my luxury cars have done in the past. Its obvious slightly cheaper materials are used, but it's hardly noticeable.

The windshield that melted snow on contact was pretty cool...but I live in Phoenix. But every time a pebble hit the windshield I would cringe because insurance won't pay for replacement of a premium windshield.

Moo Goo wrote:

$250K is the new middle class in many parts of the country. Actually, that makes one piss poor in some places.

No it really isn't. A person making $250K can choose to live in a way that makes their financials seem piss poor but that is by refusal to give up certain living conditions. I live in OC and there are cities where $250K would not go terribly far. But there are other cities within a reasonable commute distance where $250K would be far more than adequate to have excellent living conditions. You can burn through any amount of money by insisting on living in X house in X neighborhood, driving X car, send my kids to X school, go out to X restaurant, take X vacations. I can think of nowhere I've been in the US where someone who makes $250K couldn't find a nearby place to live very comfortably. Sure Atherton or Brentwood may be out. But forcing a living condition above your means does not make you piss poor.

Dopey wrote:

So what? Probably 61 pct of the country does. Meaningless stat.

The point is that most people that make a lot of money aren't spending it on a car.

Seems a large number of the people with flashy expensive cars can barely afford them or it's a significant amount of their income/savings.

Rocky Mountain High wrote:

My wife and I have household income 335k/year-probably closer to 375k this year

I have a 9 year old subaru, 125k miles -worth 9k

Wife bought a 3 year old Audi a4-worth 15k. Had to fill it up with premium gas yesterday, was hard to watch.

Cars are the biggest waste of money. Id rather go on a luxury vacation each year for 10k than buy a 50k car.

You make about what my wife and I do. I drive a 1999 Toyota Avalon and she drives a 2008 Toyota Highlander. Luxury cars are money pits that cost a ridiculous amount to maintain, will depreciate horribly within the first few years, and cost twice as much initially for useless features.

The below article agrees that "Among those earning more than $200,000 per year, the most popular new vehicle to buy is a Ford F-150 ..." followed by the "Jeep Grand Cherokee, Honda Pilot, Jeep Wrangler, and Honda Civic." However, it also states that "Only when Americans make over $400,000, do they start buying luxury brands like Tesla and Lexus..."

Thus making $200k a year is not enough to afford a fancy car, but $400k per year is.

http://money.com/money/4676840/what-the-richest-americans-are-driving-now/

I'm calling BS on that statistic. Those three manufacturers combined only account for 38% of the US market share, so highly doubtful that they have a 61% share in any single demographic much less the highest earning one.

Go for a run sometime in an upper-income town near you early on a Sunday, when the maids and landscapers are back at home, and note the cars in the driveway. You'll see a lot of luxury models, along with some sensible Hondas and Toyotas. But note that the sensible cars are generally in pristine condition. When rich people do buy a sensible car, they usually buy it new and sell it by the time it's five years old, eating the bulk of depreciation - not really a smart strategy. These people wouldn't be caught dead dropping the kids off at school in something with a dent or peeling paint.

Then they don't enjoy driving or aren't as smart as they think.

Toyota: Definitely one of the most reliable brands, but it isn't possible to create more boring cars. Almost all CVTs and even their sport version of say the Corolla has (168 hp), so a Miata just as a hatchback. (yawn). The only fun car Toyota still makes in the 86 and it's so weak and impractical since it has no space. Lastly, if you buy a Prius it's understandable, but you hate driving. (and I live in CA where everyone has them). Also, only a 5 yr/70k warranty

Ford: Ford doesn't even make normal cars anymore! The Mustang is the only fun car they still make that the public can afford. Only a 3 yr/36k warranty for an American make, sounds risky as hell to me.

Honda: By far the best of these 3. The Civic Hatch, Civic Si, and Civic Type R are all super fun, practical, and reliable. The S2000 is one of the most fun cars to drive ever imo. But, Honda mostly uses CVTs which aren't gonna last and are expensive to repair. Basically, if it's a manual get a Honda, if not you might as well get a Nissan. Also, 5 yr/70k warranty.

Basically, if you're looking for the most cost effective/lowest risk you're better off with one of these, assuming you're looking for practicality, fun, and under $30k.

Subaru: The most practical as all but the 86 clone has ample room and AWD, but they generally cost about 15% more that the other Japanese brands. If it's used get a Subaru. Warranty is still 5 yr/70k.

KIA/Hyundai: Same price as a Toyota, or less. Older ones were trash, but the Koreans have caught up with the Japanese from copying tech. Only ones I know of where you can get a DCT (What is in the majority of top sports cars) and not a CVT for a car under $40k. They all have Android Auto and Apple Car Play, don't think any other brands do. Lastly, the warranty is 10 yr/100k so for a ~$20k car thats basically an expected life guarantee i.e. low risk. And if you actually enjoy driving their Sport versions in the sub $30k range are on par or better than all the other competition.

Disclaimer: I don't work for any car companies or have a vested interest, just an engineer who is really into cars.

Moo Goo wrote:

$250K is the new middle class in many parts of the country. Actually, that makes one piss poor in some places.

Nah, that is nowhere near true. I am above middle class in LA and make half that. Even in SF and NYC $120k puts you in the Upper Class (i.e. not in the middle 50%)

Source:

Several managers I work with drive F-150 king ranch editions, while many of the young engineers drive bmw 3 series or Mercedes c class. So supports your statistic that higher income people drive fords, but a new king ranch f150 sells for more than $60k, about $20k more than the compact luxury sedans, so I’m not sure if it proves your point.

Wait a minute. We now have a new criteria to add to the average LRC poster? Sub 14, $250k, hot wife AND drives a 15 year old Toyota?

(BTW, looks like the income threshold needs to be increased.)

My spouse and I had 2018 pre-tax income of close to 7 figures. We drive a 2017 CR-V ($25k + tax) and lease an e-golf ($134/month 0-down).

Honda+Toyota+Tesla are the big brands around here.

LA beach city wrote:

My spouse and I had 2018 pre-tax income of close to 7 figures. We drive a 2017 CR-V ($25k + tax) and lease an e-golf ($134/month 0-down).

Honda+Toyota+Tesla are the big brands around here.

Anonymous people bragging maybe lying about their income. You gotta love it.

Missing The Point wrote:

Dopey wrote:

So what? Probably 61 pct of the country does. Meaningless stat.

The point is that most people that make a lot of money aren't spending it on a car.

Seems a large number of the people with flashy expensive cars can barely afford them or it's a significant amount of their income/savings.

I already understood the point but since I am smarter than you people the stat again is rendered meaningless without context.

Racket wrote:

runnER/DR wrote:

3 times the cost for maybe a 10 percent better experience.

These types of comments are always dead giveaways to someone who has, in fact, never driven a luxury car or SUV. The difference between driving a plastic wind up toy that feels like a strong wind could knock it off the road and a properly engineered luxury car is night and day. Whether it's worth the cost is one thing, but "a 10 percent better experience" isn't even remotely close.

I think it's just an indicator of people with different tastes. I leased a luxury car for 3 years to try it out and see if it was worth the extra cost to me. I'm back in a Hyundai now. The luxury car was nice. It was fun. I'm glad I tried it. But, wasn't worth 3x the cost (approximately) to me.

They are packing so many features into the cars nowadays that I would say the 10% better experience is a close estimate. What I got from my luxury vehicle was a LOT more horsepower, better handling, a slightly better interior design, and nicer leather on the seats. Technology package was about the same. How often do you get to use a ton of horsepower? In my neighborhood, not a lot. Unless racing people off the line at every red light is your thing, I don't see the appeal. I lost interest in that behavior in high school.

I make roughly 11 times that amount.

I currently drive that Mercedes Wagon, with the kit, that's kitted out, look like it got frog eyes. That b!tch on dubs.

kaguare wrote:

LA beach city wrote:

My spouse and I had 2018 pre-tax income of close to 7 figures. We drive a 2017 CR-V ($25k + tax) and lease an e-golf ($134/month 0-down).

Honda+Toyota+Tesla are the big brands around here.

Anonymous people bragging maybe lying about their income. You gotta love it.

This is definitely flattering :).

It's interesting that this seems unbelievable to you. Look at what real estate costs within half a mile of the beach in LA. People need to make a lot to afford to live there.

That said - our current compensation is really good and we do not spend like it will last forever. If a few things go wrong we could be at ~400k (or 200k if one of us lost our job) so we try to live at that level and save a lot.

Over $250k and drive 3 chevys.

LA wrote:

kaguare wrote:

Anonymous people bragging maybe lying about their income. You gotta love it.

This is definitely flattering :).

It's interesting that this seems unbelievable to you. Look at what real estate costs within half a mile of the beach in LA. People need to make a lot to afford to live there.

That said - our current compensation is really good and we do not spend like it will last forever. If a few things go wrong we could be at ~400k (or 200k if one of us lost our job) so we try to live at that level and save a lot.

It does not seem unbelievable. However, you and your wife are NOT worth close to a million a year and you know it. One or both of you are overpaid.