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      09-06-2012, 09:55 PM   #33

Drives: '08 335i
Join Date: Jul 2009
Location: TX

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Originally Posted by davesaddiction View Post
= why you can't keep up with the ballers!
Nah. Paradoxically, the true "ballers" are the ones who purchase cars outright and keep them for 10-12+ years. (Edit: I just realized you were playfully agreeing with my point, my bad. I'll leave the rest of the post in anyway because it has some interesting data)

People with money (liquid net worth $1M - $5M (upper middle class), or liquid net worth $5M-$10M (lower upper class)) are rarely wasteful when it comes to cars. The typical person in this class will buy a car outright in cash for $35k-$100k and keep it for ~10 years or so.

Here's an interesting article looking at the features of the lower upper class (liquid net worth not including primary residence > $5 million, median annual discretionary income > $500k/year):


"We already looked at how much money it takes to be in the top 1% of wealth in the United States. Now we are going to look further into the top 1% of wealth. This category, those who have between $5 and $10 million in investments, has been called by some The New Elite....These people typically have at least $5 million in liquid assets (i.e., not including their primary residence) or have at least $500,000 in annual discretionary income.

But this begs the question: Who are the new elite, or the top 1% of wealth in the United States? What behaviors and characteristics are displayed be members of the capitalist class? Here are some facts and research from a great book written by some specialists who are among the leading marketers to the rich in America. It is their job to know who the rich are, how they behave, where they live, what they drive, and how to turn them into customers.

General Facts About The New Elite
For every 100 new elite members in the United States:

The average age is 47 years old
90 to 95 made the money themselves; only 5 to 10 inherited it
90 are college graduates; 10 are not
For those who are college graduates, 3 out of 4 did not attend an Ivy League school
8 are Asian (defined including those from Indian subcontinent); nearly 3x the rate found in the population
96 do not own a yacht; 4 do
50 haven’t furnished their homes in any way that would reflect their economic status

Stealth Wealth
The most shocking statistic about the new elite in the United States? For every 100:

80 practice “stealth wealth” so friends, family, and neighbors don’t know they are members of the new elite.
20 are known to be rich by family and friends

Why doesn’t this get covered in the media? As Jim Taylor, Doug Harrison, and Stephen Kraus put it, “Happily married man builds a successful business and lives a quiet, happy life” isn’t necessarily news. ”Rich guy with many girlfriends buys huge yacht featuring built-in stripper pole” is going to get more headlines.

Family Background:
For every 100 new elite in the United States:

8 grew up in poverty
28 grew up in lower middle class
36 grew up in middle class
25 grew up in upper middle class
8 grew up in a wealthy or affluent class

Source of Wealth:
For every $100 the new elite in the United States making more than $500,000 per year in discretionary income have in net worth:

$35 came from owning their own business
$28 came from working for someone else’s business
$17 came from financial investments
$13 came from real estate
$4 came from inheritance
$2 came from other sources

Where The New Elite Grew Up:
For every 100 new elite in the United States:

45 grew up in the suburbs
27 grew up in urban areas
20 grew up in rural areas
9 grew up in the inner city
1 grew up in a gated community

What The New Elite Drive:
The new elite in the United States spent $50,000 on average for their car. Here are the top ten vehicles owned by the wealthy. The figures add up to more than 100% due to many households owning more than one type of vehicle.

25% drive a Mercedes-Benz
23% drive a BMW
22% drive a Lexus
18% drive a Toyota
16% drive a Chevrolet
14% drive a Ford
12% drive a Honda
12% drive a Porsche
10% drive a Volvo
10% drive an Audi

Where the New Elite Live:
For every 100 new elite in the United States:

20 live in the New York/New Jersey/Connecticut corridor
17 live in California
63 are dispersed throughout the remainder of the United States


I'm not at all surprised by Toyota, Chevrolet, Ford, and Honda outshining Porsche in the car category.

Last edited by NemesisX; 09-06-2012 at 10:22 PM.