We Americans are so stupid. Our friend rolls up in a shiny new car and our jaws drop… “Remote start, cup warmers, plush leather seats, and a sleek new body style….(drooling ensues)…I want one so bad! I’m so jealous of you and your new car!”
Do you realize what you just said??
You’re jealous of:
- the new $471 monthly car payment?
- the additional $100 a month they’ll pay in insurance costs?
- the 60% depreciation of its value in the first four years?
- the additional 10 years that you’ll have to work because of it?
I admit it. I used to drool at my coworkers’ new cars when I first started working for Corporate America, but now I know the facts. New, expensive cars will only keep me from living the life of my dreams – you know, one with travel, excitement, and plenty of money.
Top 10 Cars to Avoid If You Want to Be Rich
Okay, so I’m probably preaching to the choir about the new car purchases. If you’re reading this page, I assume you already know all the downsides of owning a new vehicle, namely the extreme costs of buying it, insuring it, and holding onto it (depreciation).
But what about buying a used car? What types of cars are a good idea to own? And which ones are the cars to avoid if you want to be rich?
Earlier this year, I wrote an article titled, “Top 10 Cars for Digging Your Way Out of Debt“, so I’ve already got that topic covered. But I still feel like there’s a huge gap with peoples’ perceptions of what used vehicles are smart to own and which ones are just flat out stupid to ever consider parking in your garage.
If I were you, I would take note of these top 10 cars to avoid if you want to be rich.
I’m lumping these all together because they’re all equally and unbelievably stupid – especially as used vehicles. Not only are these cars still more expensive to buy and insure than a comparable domestic vehicle, but they become unbelievably expensive to repair because they have expensive replacement parts and they require an expert mechanic to bring them back to health.
Why is it that some of the coolest looking cars have some of the worst reliability ratings? I really like the look of the Saab, but I vow to never own one. Based on their listing on the Consumer Affairs website, general repairs can easily cost $800 all the way up to $6,000. You’ll rarely see one with over 200,000 miles, which can pretty much tell you what to expect after the 100,000 mile mark. As a positive, these vehicles usually rate well in the crash testing, but that’s where the positives end.
Whether brand new or used, if you’re buying a Land Rover, you’re overpaying heavily for the name. The Land Rover is supposed to be a luxury all-terrain vehicle. They’re pretty and they have a ton of gadgets, but as my dad always said, “The more options you put in a car, the more things that can go wrong with it.” And based on my research, Land Rover has had plenty of woes… Be sure to put this on the list of the top 10 cars to avoid if you want to be rich.
If you own a Hummer, you probably have some kind of mental issues. Seriously. They really aren’t good for anything. They’re big on the outside, but relatively small on the inside. They don’t handle all that great (especially in the snow). And, they get absolutely terrible gas mileage. If you want to be rich, then you have to think practically, and this vehicle is not at all practical.
I fell prey to the lure of the Volvo when I was 23 years old. My VW Passat VR6 was failing me every other weekend (by the way, this could be #11 of this list – it was an absolutely terrible car) and I wanted a safe, reliable Volvo, you know, like all the commercials promised…
Thankfully, it made the trip from Michigan to my new home in Florida, but about 6 months after that, the transmission went out. $2,800 later, I was back on the road. And then the water pump was failing, and then the coolant tank cracked, etc. etc. etc…. I paid $3,000 for it used, and put in another $4,000 to keep it on the road.
As with the Mercedes and BMW, these cars are just outrageously expensive to fix. Etch this one in stone on the top 10 cars to avoid if you want to be rich.
Out of all the foreign vehicles that are offered today, Lexus is probably the one I trust the most. For years, it has proven to be a reliable option. So why did I put this on my list of cars to avoid if you want to be rich? It’s simple. You’re paying too much for the name. At this very moment, I’m staring at an ad for a 10 year old Lexus with 176,000 miles. Do you know what the asking price is? $9,000! This is just way too much money for those stats. And, if it does break down (as all cars do), the repairs will be pricey. Don’t start drooling for the Lexus, especially if you want to be rich.
10) Chevy Corvette
Talk about impractical – let’s talk about the Chevy Corvette. I’ve wanted one for years, but it makes no sense to buy if you want to have a fat wallet in your later years. In my area, I could buy an 80’s model Corvette for $4,000, but then come the costs of insurance, gas, and repairs. One could easily go from a $4,000 purchase to an immediate $2,500 repair bill with one of these things. These cars aren’t made for reliable transportation – they’re toys, and only the rich should own them and play with them.
You know how you get rich? You buy embarrassing cars and ugly houses. Nobody gets rich buy acting wealthy and buying things they can’t really afford. In fact, that’s how people go bankrupt.
The above list shows the cars to avoid if you want to be rich, and I would hold yourself to this list – with no exceptions (oh, and Ferrari, Lamborghini, Bentley, and Maserati…those shouldn’t have even crossed your mind – they’re stupid with zeros on the end). Why not drive a Honda, Toyota, or a dependable domestic car for less than $10,000? You’ll pay less in insurance, less in repairs, and you’ll be able to beef up your investment funds for your later years.
Choose to be rich and avoid all of the stupid cars in this list!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.