Warren Buffett is worth over $140 billion. He could buy a new car for every day of the year — heck, for every hour — and still have plenty left for ice cream and insurance. But instead of cruising around in a luxury supercar, he's been rolling in a 2014 Cadillac XTS… with hail damage.
Everyone knows Buffett isn't flashy. His frugality is legendary. He still lives in the same Omaha home he bought for $31,500 in 1958. And when it comes to cars, his approach is just as practical.
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Back in 2001, at the Berkshire Hathaway BRK BRK.B)) annual meeting, Buffett explained how he chose his car based not on style or horsepower, but safety. "Actually, I picked out the car I have based on the fact that it had airbags on both sides," he said. "It's both heavy and has airbags, and those are two primary factors in safety. I don't think a safer car is necessarily being made."
By 2014, it was time for an upgrade — or so his daughter decided. Buffett sent Susie to the dealership to negotiate the price. In a BBC documentary, she revealed he didn't just keep cars forever — he bought ones with hail damage to save a few bucks. "You've got to understand, he keeps cars until I tell him, ‘This is getting embarrassing — time for a new car,'" she said. The 2006 Cadillac DTS he finally let go? It had barely 19,000 miles after eight years.
In an interview with Forbes, Buffett justified his minimal car use, saying: "The truth is, I only drive about 3,500 miles a year, so I will buy a new car very infrequently." The 2014 Cadillac reportedly cost around $45,000 — a drop in the bucket for someone whose daily stock moves can dwarf that figure by the second.
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And in case you're thinking, "Well yeah, he's just quirky like that," Buffett's habits line up with a growing national trend. According to S&P Global Mobility, the average vehicle on U.S. roads is now 12.6 years old — the oldest on record. People are holding onto their cars longer due to rising new car prices, higher interest rates, and, like Buffett, just not seeing the need to upgrade.
What about the dealership hassle? Buffett addressed that too. He's famously said that buying a new car is a "half-day" commitment, and "that's just a half-day I don't want to give up in my life for no benefit." If he could just write a check in 30 seconds and skip the rest, he'd be fine—but he'd rather preserve his time and skip the dealership dance.
Buffett's car-buying philosophy is simple: If it works, why replace it? It's not just about saving money — it's about cutting down on hassle. Even as one of the richest men in the world, he's not interested in spending time at a dealership or test-driving every new model that drops.
That's the Buffett way — wealth with restraint, comfort over flash, and a healthy dose of "Why bother?" when it comes to consumer excess.
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