I recently traded in my Mercedes. Before I traded the car in, I needed to determine what I would drive next. I went back and forth on a number of makes and models. Then I sat back and thought about this from a different perspective.
I thought about what is the most common make and model of the wealthy that I know. I am aware of three millionaires that drive Toyota Avalon’s. They have the means to purchase whatever they wish, but own Avalon’s. Cost effectiveness over image.
I then reviewed who I know that drive the typical luxury brands, they consist mostly middle management or small business owners. Typically, those aspiring to be millionaires or those whose business is covering the costs.
Before I purchased the Mercedes, I ran it past my Board of Advisors, they agreed that I should pursue a luxury car, because I am in sales. They differed on which luxury vehicle I should get.
I chose a Mercedes and it was a great car, but the maintenance became ridiculous. One year the maintenance bills were equal to 1/3 of a new car… I had a choice to make, I keep cars for years. The Mercedes was now 11 years old I knew it was time to unload it. Go luxury and image or cost effective.
So, I ended up in an Avalon yet again, I chose cost effectiveness over the luxury image. I also know that is should last 10 years, and the maintenance costs will not be a minimum of $2,500 every time I take it in.