part0008

Can somebody be dead broke and still own a BMW? Yes, anybody can be dead broke and still own a BMW according to the book – “The Millionaire Next Door”.

The majority of millionaires own their cars rather than lease. Approximately 1 in 4 hold the current years model but another 25% have a model that is a four-year-old model. What about the millionaires who buy used cars? 33% of millionaires in the US buy used cars.

So what about all the millionaires who buy BMW’s? 68% of all the luxury car buyers are not millionaires. In fact, the facts say that the people who trade old cars for the newer model owe more in trade value than the market value. It is tough to get wealthy by doing stuff like that.

The used vehicle prone sectors are 20% of all the millionaires. They are aggressive shoppers. They get the best deals by shopping amongst private owners, dealers and leasing companies. This segment recommends productive strategies which could be applied to all aspects of life. Their life style patterns, financial habits and their attitude towards life itself is different and is a must learn.

They are the most efficient sectors in transforming income into wealth than any other sectors of vehicle acquisition groups. As a result, this sector is most likely to hold a six-figure salary or more. Since the income is always in correlation to wealth accumulated they tend to be really wealthy.

The UVPS are savers and tend to spend a lot less than others. They are most likely to become Millionaires. People who are driving their BMW’S tend to be non-millionaires who live a high-income lifestyle. They are in a race and often tend to be extremely broke. They have to hold their current job to pay the monthly installments towards the BMW and their million dollars home and often do not have the savings to hold their current lifestyle even for one month.

Do you want to buy a BMW? A brand new one? Can you settle for a second hand BMW that’s a decade old? Are you a UVPS?

While studying my master’s in Coventry University, I used to live with 5 other friends of which 3 of them were really big fans of cars.

As far as I know, we all come from a middle class family who could not afford to sponsor our living expenses in UK with the income from India.

We have to work part time jobs to cover our expenses and occasionally request money from our family. There are others who either sell their property/home or mortgage their only home and come to UK in order to graduate.

What did they both do? Spend almost all the money funded for the education while not finishing the course.

Meanwhile, in order to ease their discomfort, Jack bought a car which was seized by the police during his journey to Cambridge for drunk and driving. He left the car in Cambridge because he could not afford to pay the £400 fine for his £550 car. Alas! He did not have any insurance on his car!

To put it into perspective, £550 was almost 1 and half months of expenses when we were living there as students. He came to UK with a net £7000 or 700,000 rupees.

The Rupee was really down during 2013. A 100 rupee was equal to £1. So, It was a hell lot of money! I never understood their intention of buying a car anyway let alone not completing the course.

There were an exceptionally high number of students from his locality who did not finish their course while studying in UK when compared to students from other cities. I could attribute all these to personality, priority and lack of direction.

Their priorities were enjoying the time in UK while it lasted never bothering to attend the classes.

Jim occasionally asks me for 5000 rupees through messenger and I am swift to say no for I know the money is not going to a better use.