Drive like a millionaire ... in a 1993 Ford Taurus
Filed under: Transportation, Wealth, Economizer
The Onion, a leading satire website, has been one of the funniest websites in the world for a long time, but every once in awhile, there's a bit of serious financial wisdom in its content.In the video below, a "Ford vice president" Daniel Grossman announces Ford's "new vision for the future of automobiles in America -- the car for the modern age, the 1993 Ford Taurus." All you need is $650 in cash.
The video's funny, but here's the truth: If your goal is to be rich, you'll have a lot more in common with a rich person by driving a 1993 Ford Taurus than you will by leasing or financing any other car.
Here's why: According to research in Dr. Thomas J. Stanley's new book Stop Acting Rich, millionaires drive all kinds of cars -- the most popular being an entry-level Toyota. Some drive Mercedes, Volvos, and BMWs, but the overwhelming majority of millionaires have one thing in common: When they buy a car, they pay with cash.
If you need a car and want to avoid debt, you may be able to drive something that's less of a punchline than a 1993 Ford Taurus (but if not, that's OK too!). Check out Consumer Reports' list of the best used cars by price range, starting at under $4,000.
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Oli Scarff, Getty Images
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Reader Comments (Page 1 of 3)
11-09-2009 @ 1:56PM
vivzizi said...
The first rule to know about becoming wealthy is that you want to have more cash than debt. Surprisingly a huge number of people don't actually know this.
The way to do this is not take on debt unless you are taking in more cash to cover the payments.
Typically what this means is never borrow money to pay for something that goes down in value.
This is why you should never borrow to buy a car - and yes leasing is borrowing - its the worst kind of borrowing becuase you get no principal recovery).
It's SOMETIMES ok to borrow to purchase things but ONLY if they will go up more each payment period than the cost of the interest OR if they will earn you more money as a result than they cost you in interest AND if the principal value of the item (the resale value) doesn't go down faster.
Once you realize that the old car in the rear view mirror is the same new car you thought was the greatest 3 years ago but now you don't think so - well you are on your way to realizing a new cars attraction is almost completely an matter of psychology rather than design improvement.
And no the cost of repairs on an old car will NEVER be more than the cost of payments on a new car - EVER.
Reply
11-09-2009 @ 7:47PM
Dan John said...
This article reminds me how it pisses me off when people go "your car is an asset" especially when they say "your house is an asset". This is one of the main reasons the rich get richer and the poor get poorer. Knowledge = Money
If ya aint got the dough, don't go off trying to make bread
11-09-2009 @ 7:51PM
emily said...
I just want to say thanks to cash for clunkers. Thanks for absolutely nothing!The cars that were turned in on the cash for clunkers program were similar to the 93 Ford Taurus, AFFORDABLE! But because the cash for clunkers program required these cars to be destroyed, there are far less of these 650.00 cars around. At a time when the old cheap cars are all some of us can afford, the government goes and pulls them off the street! Sure they were gas hogs, but they got us to job interviews and doctor's appointments. Cash for clunkers screwed over the working poor!!!!!!!
11-10-2009 @ 1:11AM
YIANNIS said...
CLEVER, VERY CLEVER, AND SO TRUTHFUL.
11-09-2009 @ 2:24PM
Mitch said...
Brilliant!! And so obvious.
Reply
11-09-2009 @ 2:34PM
janb said...
True! Millionaires do pay cash! If you have to borrow money to buy a car, you aren't a millionaire. Quit pretending to be rich!
Reply
11-09-2009 @ 2:39PM
doug said...
Cars ARE depreciating assets, and that is the reason it is better to lease than buy. Let's face it, most people want to get out of their car every 4-5 years for a number of reasons - out of warranty, family needs or driving habits change, etc. Most importantly, safety features change rapidly. Most new model cars have six airbags, 4 wheel ABS and stability control standard, where a few years ago these were options found mostly on premium luxury autos. How much is your life, or your family's life, worth? During a lease you can pay the car off, trade it or sell it, same as a retail purchase. At the end of the lease, you know exactly how much your car is worth, you have no negative equity, and you got to drive a new car for a few years for much less than had you bought. Leasing is a priviledge, however, and you must have very good credit to lease. Intoday's world, a car is a necessity for most people, and safety is paramount. One can easily run the numbers on lease vs purchase for one's self using a matrix from many websites. Finally, very few people are able to stroke a check for $20k or more for a new car, so do your homework before you buy or lease.
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11-09-2009 @ 2:53PM
gr8bsn said...
I drive 25K-30K a year because I use my car for work as well as commuting. Leasing is bad news for people like me with the mileage penalties. Besides, I don't want to be a slave to the bank. I drive my cars into the ground, or at least until the warranty expires. I put enough cash away from every check and I'm able to trade the old one and buy a new one with cash every 4-5 years. Cash is king. Financing is for people who want to look like millionaires when they only make $20,000 a year.
11-09-2009 @ 4:25PM
Rob said...
Cash IS king, and leasing is for those who want to look rich, but aren't. Leasing a car is laughable, and is about the equivalent of a rent-to-own washing machine. A glorified rental car. A lease is only a good deal for the dealer.
11-09-2009 @ 2:48PM
gr8bsn said...
One of the more subtle points being made here is that cars cost a lot more money to build than they used to. You think that airbags, seat belts, safety cages, cleaner emissions, climate control systems, computer controls for the engine, anti-lock brakes, and GPS units are cheap? Along with improved safety features, newer cars also require a lot less upkeep. When was the last time you had to change your cap, rotor, and points? When was the last time you vapor locked your car? Exactly...
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11-09-2009 @ 8:19PM
JIM said...
You can thank the insurance industry for the higher costs of safety items like airbags, crumple zones, collapsing stering column, etc. because the insurance company does NOT want to pay out any money. They also get to charge higher premiums for more expensive vehicles. Vicious upward spiral to get into our wallets.
11-09-2009 @ 3:15PM
Norman Prevatte said...
Right now we have an 05 Nissan Xterra. We may get a Ford next, but never a GM or Chrysler product. Those companies are DONE.
Norman Prevatte
Stafford, VA
Reply
11-15-2009 @ 4:47PM
Donald said...
I had a nissan, it was a piece of crap!
11-09-2009 @ 3:22PM
Lois said...
My daughter purchased a 1985 Volvo DL in 1996. It is still running beautifully and has had no major problems. I drive it to take my granddaughter to and from school and on general errands.
I recommend older cars if you research them well.
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11-09-2009 @ 3:32PM
John said...
I laugh at some people. I see guys driving BMW M3s and I know my net worth is far greater ( and I drive a 1993 Honda). I can understand the desire for a performance car because they're so much fun, but you don't have to spend $40K and up.
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11-09-2009 @ 5:42PM
JayJ said...
exactly, I drive a 1993 Camry, never had a new car, working on my second million
11-09-2009 @ 3:36PM
JDUBYA said...
I had a 99 Dodge Ram that was finally totaled by a teenaged driver who drove into me on her way to school. That was a good truck, Now I drive a 2003 Honda CRV that I paid cash for when it was new. I ride motorcycles and by having no car payments, I can pretty much ride what I want.
Buy a bike or a scooter and use it for work and don't give a rat's %$$ what other people think. They are probably in debt up to their elbows!
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11-09-2009 @ 3:39PM
haveletgothecoat said...
Frugality is what makes people wealthy. Most of the conspicuous consumption usually comes from those who inherit it and take it for granted.
I remember passing by Warrent Buffet's house in Omaha - and I was surprised at how unassuming it was.
Most folks driving expensive cars are leveraged to the hilt, and will soon be taking the bus.
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11-09-2009 @ 3:49PM
Pamela Salmon said...
I am on my fifth Taurus.....Currently have only 130K miles, so no need to trade in yet......just keeps on running.
Forever On Road Driving......thats me And Ford
Reply
11-09-2009 @ 4:07PM
I_Luv_TuFu_2 said...
You couldn't pay me enough to drive a Ford vehicle. I love my foreign car. :-)
Reply