Many self-made millionaires skip flashy cars. They often choose practical, reliable vehicles that help build wealth instead of drain it.
They focus on total ownership costs. Depreciation, insurance, maintenance, and resale value matter more than the monthly payment.
Their biggest lesson: Buy for your needs, keep your vehicle longer, and invest the money you save instead of chasing status.
Ask people to picture a millionaire and they'll often imagine a Ferrari, Bentley, or Rolls-Royce in the driveway.
But decades of research paint a very different picture.
In their landmark book The Millionaire Next Door, researchers Thomas J. Stanley and William D. Danko found that many self-made millionaires live well below their means. They don't necessarily wear designer clothes, live in the biggest house on the block, or drive the flashiest car.
Instead, many quietly build wealth by making practical financial decisions year after year. That philosophy often extends to the vehicles they buy.
While some wealthy Americans certainly enjoy luxury and exotic cars, many self-made millionaires see a vehicle for what it is: a depreciating asset. They'd rather put their money into investments that grow in value than into something that starts losing value the moment it leaves the dealership.
Here are five car-buying habits that can help explain why many affluent households choose practicality over prestige — and what every consumer can learn from their approach.
They think about depreciation before horsepower
One of the biggest expenses of owning a new vehicle is not fuel, insurance, or maintenance.
It's good ol’ depreciation.
Many new vehicles lose a substantial portion of their value during the first several years of ownership. Luxury vehicles often depreciate even faster because they start with higher sticker prices and can become expensive to maintain once they're out of warranty.
That's why many financially savvy car buyers spend as much time researching resale value as they do all of the bells and whistles on each model.
Specifically, brands like Toyota, Honda, Lexus, and Subaru consistently earn strong marks for resale value and long-term reliability. This makes them all attractive choices to buyers who care about total cost of ownership more that owning a car that’s seen as a status symbol.
Consumer tip: Before buying any vehicle, look up its projected five-year resale value. Two vehicles with nearly identical purchase prices can have very different ownership costs simply because one holds its value better.
They calculate the total cost of ownership —not just the monthly payment
Walk into almost any dealership and one of the first questions a salesperson will ask you is: "What monthly payment are you comfortable with?"
That's an understandable question for many consumers, but it can also easily distract you from the bigger financial picture.
A vehicle's true cost includes the following:
Insurance premiums
Fuel
Maintenance
Tires
Registration fees
Repairs
Depreciation
Think of it this way: a luxury SUV with a manageable monthly payment may ultimately cost thousands more over five or ten years than a dependable midsize SUV with lower insurance premiums and fewer repair bills.
Many self-made millionaires will focus on the "total cost of ownership" instead of simply coming up with a number that fits into their monthly budget that they can “afford.”
Consumer tip: Before signing any paperwork, compare five-year ownership estimates, not just the sticker prices. I’m a huge fan of both AAA’s Your Driving Costs as well as Edmunds True Cost to Own.
Bookmark them and use them whenever you’re car shopping as they can reveal surprisingly large differences between very similar vehicles.
Reliability beats prestige almost every time
Think of it this way, a reliable vehicle for financially successful families creates predictability in their lives. This means instead of wondering whether an expensive repair bill is right around the corner, they can instead budget for routine maintenance while keeping the same vehicle for many years.
Vehicles frequently praised for their long-term durability include the Toyota Camry, Toyota Crown, Honda Accord, Toyota Highlander, Honda CR-V, Subaru Crosstrek, Ford F-150, and Lexus RX.
Consumer tip: Check reliability ratings before falling in love with a vehicle's appearance. I realize it’s not nearly as much fun, but a beautiful car is a total drag if it's constantly in the repair shop.
They keep their cars longer
One of the fastest ways to lose money is to trade in a vehicle every few years. Every trade starts the depreciation clock over again.
Many financially successful households avoid that cycle by driving vehicles well beyond the average ownership period.
Keeping a dependable vehicle for 10 to 15 years can dramatically reduce annual ownership costs because you're spreading depreciation over a much longer period while eliminating years of monthly payments.
Imagine investing a $600 monthly car payment instead of making one. Over time, that money has the opportunity to grow rather than disappear into a depreciating asset.
Consumer tip: If your current vehicle is reliable, safe, and still meets your family's needs, keeping it for just two or three additional years could save thousands.
They buy for their lifestyle — not their image
One of the biggest differences between wealthy consumers and everyone else may simply be the question they ask before buying.
Some shoppers ask: "What will people think if I drive this?"
Many self-made millionaires ask: "Will this vehicle do exactly what I need for the next decade?"
That mindset often leads to more practical decisions. A contractor may genuinely need a pickup truck. A growing family may benefit from a three-row SUV.
A commuter who drives 25,000 miles each year may prioritize fuel economy above luxury features. The purchase becomes about solving a transportation problem, not about making a statement at a red light.
Ironically, many of the wealthiest households have little interest in proving they're wealthy.