QuestionI didn't think an automechanic would know about the personal financial info of their clients, but figured a claims adjuster might have access to the kind of information I am curious about. I have seen many people who appear to be much younger than myself driving around in SUVs, giant trucks, and other seemingly expensive brand new vehicles while I drive a tiny Sedan (which is although looks decent is salvaged). My question is are these owners of these vehicles wealthy, or do they likely put themselves in great debt to have these shinny new toys? lol. Now a days do less wealthy people push for the nicer cars, or are rich people still largely the ones that own expensive vehicles? I'm sorry if this might be outside of your knowledge. I didn't know who else might know this kind of thing. Thanks. :)
AnswerMy observations based on the neighborhoods that these vehicles reside in and the actual jobs that these people hold, is that most are in debt up to their ears.
The truly wealthy (not filthy, Bill Gates rich, but well to do) in this country tend to drive understated vehicles and many live in understated homes. The older the money, the more understated the lifestyle. There are two classes that I see in this category. The wealthy and the working wealthy. The wealthy folks choose to invest their money into things that will make them more money. They don't drive fancy cars, but have impressive portfolios, investment properties etc. They are driving Impalas, Taurus's, Honda's, maybe a low end Lexus etc. The working wealthy make really good money and spend every dime of it. They are driving the BMW's, Mercedes, SUV's etc. Then there are those who just make a mediocre income but still spend every dime of it on the big SUV while living in a crappy neighborhood or they live in a nice subdivision and the spouse is working to cover the car payments.
Though I haven’t sat down and done the numbers, I believe that many Americans could retire 5 years earlier if not for their addiction to new and expensive cars.
You would not believe the amount of claims that I handle on $40,000 cars and SUV's where the people have no other real assets other than a big screen TV and cheap furniture in a crappy house.
I'm with you on this one. Though we have a six figure income, my wife and I drive a 9 year old Acura, a two year old Impala that's almost paid for and have no new car plans any time soon. Our sofa has tears, our floors would look much better with hardwood floors. We also have a boat load of home equity in a nice home, healthy savings accounts and no consumer debt. I don't need to show my wealth off to people on the freeway. I'd rather watch them driving back and forth to work for 10 years after I've retired. Life's too short to spend it paying debt.
