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Legendary 49ers quarterback Steve Young earned nearly $49 million playing football, according to Spotrac, but you’d never guess it from the beaten-up 2011 Toyota Sienna he drives.
In a recent interview with journalist Graham Bensinger, the two-time NFL MVP admitted he could easily afford a replacement for the car, which has racked up 132,000 miles. However, he’s reluctant to let it go because of advice from his father, who always told him to “get the most out of it.” And he’s not the only Young family member who’s emotionally attached to the vehicle.
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“This is a car that the kids all grew up in,” Young told Bensinger. “My youngest Laila — that seat over there with the camera is the seat that she won’t give up. That’s her seat for life … she’s like, ‘No, I love this car [and] how it smells.’”
Surprisingly, multimillionaires driving modest cars isn’t as unusual as some might think.
The modest cars of millionaires
Contrary to the stereotype, many wealthy people aren’t driving around in flashy Ferraris and bright orange Lamborghinis. The top car brands for households earning over $250,000 were Toyota, Ford and Honda, according to a 2022 study by Experian Automotive.
Even billionaires opt for relatively inconspicuous cars. Warren Buffett reportedly drives a Cadillac XTS — no Bugatti for the Oracle of Omaha.
While most affluent people who can splurge on luxury vehicles simply choose not to, many ordinary consumers are already stretching their budgets to the limit. A recent survey by CDK Global found that 57% of car buyers said they hit the top end of their budget, while 7% exceeded it.
The strain on consumers is also reflected in auto loan data. As of mid-2024, one in 24 drivers with a car loan was paying more than $1,000 in monthly payments per vehicle, according to Experian — a ratio that has nearly quadrupled since 2020.
For many, the family car is becoming a significant financial burden. Here’s how you can avoid the growing auto loan crisis.
Read more: This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here’s how to buy the coveted asset in bulk
Drive smart
For most consumers, cutting transportation costs is one of the most effective ways to improve their finances. After all, transportation is the second-largest annual expense for the average household, according to a 2022 report by the U.S. Bureau of Transportation Statistics.
One way to reduce this expense is by purchasing a car that’s within — or even below — your means.
To figure out whether a vehicle fits your budget, consider the 20/4/10 rule.
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Choose a loan term of no more than four years
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Keep all car-related expenses below 10% of your gross income
If you find yourself shelling out a significant portion of your salary in car payments alone after running the numbers, you could try to refinance your car loan at a lower interest rate.
By setting up firm financial guardrails, you can avoid the auto loan debt trap many consumers drive into.
LendingTree is an online marketplace that allows you to compare auto refinance rates from leading lenders near you for free.
Once you answer a few questions about yourself and the vehicle you want to refinance, LendingTree will connect you with three to five lenders from their network of over 300.
From there, you can read reviews and compare the loan terms at your discretion — all without impacting your credit score. What’s more, you may be eligible for refinanced loans as low as 5.03% APR through LendingTree’s network.
You should also consider the hidden costs of car ownership. It’s not just the monthly car payments you should budget for — you’ll be shelling out for gas, maintenance and insurance.
Out of these three factors, insurance is the one you likely have the most control over. It can also be a big cost. The average American spends $2,692 per year for full coverage auto insurance, according to a study conducted by Bankrate.
And, if U.S. tariff policy holds, insurance premiums are likely to rise. Tariffs on imported car parts and rising climate-related repair costs are expected to drive car insurance premiums to rise 60% faster in 2025 compared to last year, according to a study from Insurify.
But there are ways to save. LendingTree found that 92% of Americans saved money when they switched insurance providers.
With OfficialCarInsurance.com, you can shop around and compare insurance rates from reputable providers near you like Allstate, GEICO and Progressive.
The process is easy and takes less than two minutes. Here’s how it works: Simply enter some basic information about your driving history and the vehicle you want to insure, and OfficialCarInsurance.com will comb through its database and show the lowest rates available for you in your area.
The best part? The process is 100% free and won’t impact your credit score. Get started today and find quotes as low as $29/month.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
