Star Roof Car Installation Cost? The 13 New Answer

During our recent test drive of the amazing Rolls-Royce Ghost luxury sedan – a vehicle that feels like a condo on wheels – the only feature that left passengers in awe was the car’s Starlight headliner.

Rolls-Royce has many eye-catching features that draw attention, including the power-operated doors, rear-hinged rear doors for maximum rear seat access, power-deployable “Spirit of Ecstasy” hood ornament (with built-in Up lighting, natch !), and the British isle must-have, the built-in umbrellas in the doors for easy access when you step straight out onto a rainy tarmac. You know, your basic car stuff.

But it’s the car’s headliner, the ceiling inside the mammoth sedan, that draws the attention of anyone lucky enough to crawl into the car. The leather lining is perforated with between 1,400 and 1,600 holes, hand-threaded with fiberglass threads that, when lit, create the effect of a star field inside the car.

The meticulous work of the craftsmen who hand-build Rolls-Royce vehicles at the company’s headquarters in Goodwood, England, and the factory trim each fiber end at a unique angle, fitting it flush to the surface of the leather. The different angles at the tips of the fibers create a sparkling effect for the viewer, as the intersection angle affects the direction of light exiting the fibre.

[Related: The First Rolls-Royce SUV Has Tricks That Might Actually Justify Its Price]

This fascinating feature made its debut in a bespoke Rolls-Royce Phantom in 2006 when the customer requested an 800 star headliner and it was such a sensation that the Starlight headliner is now standard equipment on Ghost models. Sunbathers can choose a panoramic skylight instead, but most buyers opt for the Starlight headliner, reports product manager Will Vetter.

Today’s headliner not only has at least twice as many stars as the first – it also has new functions and individual designs. A basic example: The Rolls-Royce craftsman needs at least nine working hours for the production. Some of the additional stars represent an increase in light density, but most of the added stars are there to fill in the increase in area covered by the synthetic starfield.

“Originally it was really just focused on the rear cabin,” notes Vetter. “It wasn’t the expanse it is today.”

Workers create the layout using a plexiglass template that indicates where the perforations should be to allow the fiberglass to show through. They thread hundreds of glass fibers into bundles and lead them to five to seven light modules, which illuminate them.

[Related: Ford’s Electric Mustang Mach-E Is a Major Leap Forward]

Customers specify star fields, such as the stars that would have been above them on the day they were born, their zodiac sign, popular constellations such as Ursa Major and Ursa Minor, a family crest or even a company logo.

Just as the glare of the full moon at night spoils the view of the stars outside, a conventional ceiling light would ruin the effect of the Starlight Headliner. Therefore, Rolls-Royce uses fiber optics as a virtual overhead light that illuminates the cabin, increasing everyone’s brightness to bathe the interior of the car in all-encompassing light.

In addition, there are areas of the “sky” for reading and map lights, optionally with local brightness above certain seats in the car.

The latest innovation is a shooting star feature that animates the celestial scene with movement. The shooting star is created through a network of 24 path lines that animate the motion of a randomly spawning meteor streaking across the sky. The shooting star can fly in either direction on its path and varies in brightness, using between one and four fibers to illuminate each star along the way. They can change the length of the fireball’s tail using up to five fibers to create a trailing effect, Vetter reports. There are 196 fibers dedicated to the shooting star effect.

The headliner in Tempus. Rolls-Royces

Another dynamic starfield effect is the continuous variability in the brightness of the stars, causing them to smoothly undulate in brightness and intensity to appear more like shining through a turbulent atmosphere.

The company continues to experiment with even more refined modifications, such as with its collection cars like the “Tempus,” which features hand-painted images on the leather accompanied by a pulsar light effect. The company has pioneered alternative lighting uses with a custom Wraith coupe dubbed “Kryptos.” It uses fiber optic lighting technology to attach a printed circuit design to the ceiling.

The inside of the crypto resembles a circuit board. Rolls-Royces

As Rolls-Royce executives often point out, an economy car reliably gets its occupants to their destination, so the luxury British brand must offer an experience rather than simple transport. The reaction of our passengers during our weekend with the Ghost is convincing that Rolls-Royce retains its ability to amaze people with its “surprise and delight” amenities.

Some of the most common questions asked online about Starlight headliner kits are: Which Starlight headliner fits my car? How many stars should I get for my Starlight headliner?

There are many different ways to buy a Starlight headliner kit online and it can often be confusing as to which kit works best. At Starlight Custom, we recommend kits based on the size of your car, whether it has a sunroof, and the class and budget of the vehicle to determine what type of Starlight headliner kit you should get.

To find out which kit suits your car best, you can follow our shop guide here.

The components of the kits can change in 3 different ways as the vehicle size and class changes. We have listed the details below.

amount of fiber optic lights. Optical fibers are built into the fabric of your vehicle’s roof and then lead to a light source hidden somewhere in the car. Larger cars, such as full-size sedans, have larger headliners and require a larger number of stars to adequately cover the space. As an example, we recommend an average of 150-350 stars for an average 2-door coupe, while a larger SUV may require between 600-1500 stars depending on size. Please see our shop guide to find the right kit for your car.

Power of Light Engine: The Light Engine is the energy source for the Starlight headliner. These contain the bright LEDs that shine light through the fiber optic strands to appear on your headliner. Some light engines may also include a “flash engine,” which is a metal disk with holes that rotates to break the spot of light and create a “flash effect” at the end of the fiber optic. The output power of the light source can be scaled from 6 watts (W) up to 50 W. To determine the appropriate power source for your car. Performance is linked to the amount of light required to adequately fill the headliner. More lights require a higher power source to ensure the light is bright enough to create a proper starlight experience. Not enough power and the lights may be barely visible! A 6w power source might be good for around 150-200 lights, but anything higher will require more wattage to function.

Fiber Optic Length: Fiber optic lights can be available in many different lengths as well as diameters for different applications. The lights typically vary from 6.5 feet to nearly 16.5 feet depending on the size of the car and where the light source is to be stored. Of course, smaller vehicles like 2-door coupes only require 6.5 feet, while larger cars require lengths of 9.8 feet to 13.1 feet to properly fit the vehicle.

Starlight kits can also be purchased with different light diameters. In our opinion, the different lights are necessary to get the most out of your car’s Starlight headliner. The different lights give your headliner a realistic ‘three dimensional’ effect with the different light intensities, as it appears as if some smaller stars are further away and the larger stars are closer and more intense. All the deluxe and elite kits we provide usually come with three different light diameters (0.03″, 0.04″ and 0.06″).

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Some Starlight headliner installations are not too difficult, it usually depends on the technique used to install it. Some tutorials on youtube show drilling holes in the headliner mold and fabric where the lights will be pierced and eventually protrude the other end. This technique can help speed up the process and make things easier, but can produce subpar results as it causes damage to the headliner and sometimes protruding lights, ruining a headliner’s clean, “sleek” look.

This is a poor install, the lights are too intense as they protrude through the headliner fabric and you can see the light protrusion.

A professional Starlight headlining installation installs the lights in an elegant and subtle manner, in proper Rolls-Royce manner. The lights are not visible when off and are not noticeable when looking up at or touching the headliner fabric. The professional installation technique requires a high level of skill, precision and careful handling that is maintained over the course of the installation of potentially hundreds if not thousands of delicate optical fibers into a vehicle’s headliner. This will of course create the best looking Starlight headliner for your car, but can be exponentially more difficult than a driveway installation at home.

This is a great install by the guys at RR Auto. You will not feel or see the headliner lights when they are off.

LendingTree is compensated by companies on this website and this compensation may affect how and where offers appear on this website (e.g. the order). LendingTree does not include every lender, savings product, or lending option available on the market.

LendingTree is compensated by companies on this website and this compensation may affect how and where offers are displayed on this website (e.g. ordering). LendingTree does not include every lender, savings product, or lending option available on the market.

Editor’s Note: The content of this article is based solely on the opinions and recommendations of the author. It must not have been reviewed, commissioned, or otherwise endorsed by any of our network partners.

In 2021, the average car cost $42,258 with an average payment of $563 per month, according to data from Kelley Blue Book and LendingTree. However, alongside the sticker price and payments, there are the costs of gas, insurance, oil changes, and other expenses that car owners need to consider.

Comparing total cost of ownership can be far more important than, say, vehicle color choice, but it can be difficult. Here you can find out how much you really spend on your new vehicle.

How to determine the total cost of car ownership

Look at averages

That’s how much a new car costs per month, including incidentals like fuel, insurance and tires, according to the AAA and Kelley Blue Book.

Average New Car Cost New Vehicle Category Average Total

Cost per month average

Transaction Price Small Sedan 603 $23,903 Small SUV 708 $32,258 Midsize Sedan 781 $30,281 Midsize SUV 831 $43,623 Full-Size Pickup 966 $57,267

Learn more about AAA’s methodology and KBB’s research here.

Use a calculator

For a more accurate estimate based on your car’s make and model, opt for a car ownership calculator.

The calculator takes into account important car-related expenses, including:

Financing. Most people need a car loan to buy a car. Based on LendingTree’s auto debt statistics, the average APR for auto loans in the first quarter of 2021 was 9.46%. For a new car, the average loan term was almost six years, and the average loan amount was $34,635. This results in interest payments of $10,887 over the life of the loan. If you are in the market, here are the best car loan rates.

Insurance. The national average cost of auto insurance is about $73 per month or $876 per year.

Taxes, Title and Registration. While some states don’t have a vehicle sales tax (check out the best states to buy a car), others have hefty sales taxes on top of annual property taxes. If you are buying a vehicle for the first time, expect to spend around 8% to 10% of the vehicle price on taxes and fees, including those charged by the dealer.

Merchant Fees. Here are the dealer fees to look out for when buying a vehicle. Some are unavoidable, such as B. New Vehicle Destination Fees. Others are optional add-ons, like extended warranties.

Fuel. According to calculations based on data from the Federal Highway Administration, AAA, and Bureau of Transportation Statistics, you could consider an average of about $160 in fuel costs per month as part of the cost of owning a vehicle. Of course, how much you spend on petrol depends on how much you drive and what the average cost of petrol is in your area. To find out how much you could spend on fuel for a trip, you can use the Gasoline Cost Calculator provided by the US Department of Energy.

Maintenance. As we discussed above, maintenance costs can be difficult to pin down. AAA data shows that servicing a new car averages about $199 a month if you drive 15,000 miles a year. These costs can skyrocket as the car gets older and the warranty has less coverage.

depreciation. The single largest contributor to the average annual cost of a new car is depreciation. Most new cars are worth half of what they cost after three years, conveniently after even the most comprehensive warranties have expired. The best way to limit depreciation is to buy a used car.

New vs. used car costs

In short, used cars cost less to buy. Americans borrow an average of $34,635 for new vehicles and $21,438 for used vehicles. Still, used cars generally have higher maintenance and repair costs due to breakdowns and diminishing warranty coverage. It’s part of the process of deciding whether to buy a new or used car.

Data from the US Bureau of Labor Statistics shows that people spent $879 a year on auto repairs and maintenance in 2020.

To reduce the risk of having to shell out money for maintenance or repairs:

→ Check out reliable vehicles: According to the latest vehicle reliability study by J.D. Power, Lexus, Porsche, Kia, Toyota and Buick are the five highest ranked brands for reliability. The Kelley Blue Book also offers annual awards for specific cars based on their five-year cost-to-own ranking.

→ Perform regular vehicle maintenance: The best way to avoid a major repair is to follow your car’s maintenance schedule.

→ Make sure it’s a rainy day: it’s a smart idea to put money aside each month in case something goes wrong. A traditional budget rule recommends that you use 50% of your income to pay bills, 30% for extras like entertainment, and 20% straight into your savings account.

→ Consider an extended warranty. A high-tech, basic, or powertrain vehicle service contract (VSC) can save you from paying high out-of-pocket repair costs. How to find the best extended car warranty.

→ Consider getting an Electric Vehicle (EV): While EVs tend to cost more upfront than traditional cars, they have far fewer moving parts to break.

Relevant car cost questions

How much does it cost to paint a car?

According to consumer price tracking website CostHelper, the average cost for a basic car paint job is $566 but can reach as high as $7,500 for the highest quality. The exact price depends on the size of the vehicle, the quality and color of the paint and any imperfections such as rust spots and scratches that need to be dealt with beforehand. If you’re feeling extra diligent, you can get a beginner’s car paint kit for around $500, which has everything you need to paint a midsize car like a Ford Mustang, including the DYC sprayer.

How much does it cost to ship a car?

Auto shipping can cost around $1 per mile if you’re shipping the vehicle within a 500-mile radius, but that rate drops the farther you need to ship. For example, shipping a compact SUV from New York City to San Francisco can cost less than $1,300. How to find a reliable car shipper.

How much does a car battery cost?

You can expect to spend anywhere from $100 to $200 on a car battery, depending on the car and the quality of the battery.

How much does a Tesla cost?

Tesla prices tend to shift like sand in a desert. The best way to find out what a Tesla costs is to look on the Tesla website for the “purchase price” rather than the “price after estimated savings” for the model you want. The “price after estimated savings” is what Tesla often advertises, but it includes potential federal tax incentives and a few years of projected gas savings.

Is buying a car worth it?

In the euphoria of buying a new car, it can be almost too easy to overlook the total cost of ownership. If you live in a city, consider other alternatives that can reduce the cost of your commute, especially if you have to pay for parking at work and/or home.

What is the average cost of running a car in the UK?

UK car owners spend over £3,000 each year running their cars. Aside from the purchase price, the biggest costs of owning a car are petrol or diesel (now an estimated £1,435 a year due to rising petrol and diesel prices), car insurance (£484 a year) and repairs and maintenance (£273 a year). . In addition, road tax, parking fees and permits, driving lessons, car clubs, fines and other maintenance costs cost an additional £259 per year per vehicle.

Average UK car running costs per year^ £1,104 Petrol & diesel £1,435 Car insurance £484 Repairs and maintenance £273 Road tax £141 Parking, tolls and permits (excluding traffic fines) £44 Garage hire, other costs (excluding fines ), car wash etc. £31 Motorists’ organization subscription (e.g. AA and RAC) £18 driving lessons £13 Antifreeze, battery water, cleaning products £9 Fines £4 Annual running costs of one car £3,556

If you are reading this because you are an employer or employee considering per-mile expense reimbursements for commuting, please read more about this topic here.

Cost of cars in the UK

To buy a car in the UK you can spend anywhere from a few thousand pounds on a used car to tens of thousands of pounds on a new car or more! The most popular cars in the UK cost between £12,000 and £36,000 to buy new in the region (from street prices).

For example, the Ford Fiesta starts at around £18,000. Some cars cost a little more though, with the ever-popular VW Golf available from mid-£30k. Budget conscious households can save by buying a gently used car and stay away from the trend of buying more expensive cars.

Cost of buying a car in the UK

Resources like AutoTrader and Desperate Seller can help those looking for cheap cars for sale.

Gasoline costs for cars

For the typical car owner, the average fuel cost is around £1,435 per year (£1,272 for a typical petrol and £1,683 for a typical diesel, assuming an average mileage for each type of 6,300 and 9,400 miles per year respectively). This primarily depends on the number of kilometers driven and the fuel efficiency of your car.

Car insurance costs

The average cost of car insurance in the UK is just under £500 per year. However, prices can vary significantly from person to person. Some of the factors that have the biggest impact on the price you pay for car insurance are your age, the car you drive, your mileage record, where you live and where you store your car at night ( z in a locked garage). If price and customer service are both priorities for you, check out our list of the top 10 top rated cheap car insurance companies.

Car service costs

Whilst the average amount spent each year servicing and repairing a car is £270, this amount can also vary greatly from year to year. For example, newer cars tend to have fewer problems and are guaranteed for the first few years, limiting service and repair expenses compared to older cars. Repair and service costs can also be quite flat from year to year. For example, you will spend more in a year if your car needs major maintenance (e.g. every 24 months or 20,000 miles) or if an expensive part on your car breaks.

frequently asked Questions

How much does it cost per mile to drive a car in the UK? The cost of driving a car has risen to around 47p per mile, which we calculate by dividing the average annual car operating cost of £3,556 by the average car mileage of 7,600 miles per year. The cost can vary based on factors such as the value of the car, the insurance rate, and the fuel efficiency of the car

How much does it cost to drive 1,000 km? For a typical car owner, the cost for every 1,000 journeys is around £470 (as the running cost per mile is 47p).

How much does a car cost in the UK per month? The average cost of owning a car in the UK is around £296 per month when you factor in the average annual cost of owning a car

How much is car insurance in the UK? The average cost of car insurance in the UK is £460 a year, or around £40 a month.

How much should I spend on a car? The average household spends around £1,100 a year on car purchases and financing, which is 4.3% of their annual family budget. If it suits your financial situation, you can use this number as a guide for your own car purchase.

How much is gas per mile? Latest figures show that the average cost of petrol in the UK is 160p per liter for petrol and 169p per liter for diesel.

How many cars are there in the UK per household?

According to an analysis of ONS data, NimbleFins calculates that there are 1.19 cars per household in the UK

methodology

To work out how much it costs to own a car in the UK, we analyzed data on family spending from the Office Office for National Statistics. First, we collected car-related expenses for a typical household, such as: B. Money spent on buying a car, car insurance, fuel, taxes, maintenance, driving lessons and other costs related to maintaining the car.

Since this was per-household data, we had to convert it to a per-car basis by dividing the cost data by the average number of cars per household. We calculate that the average number of cars per household is 1.18 (32,869,900 cars in the UK divided by 27.8 million households). From there, we could see how much people are actually spending on their cars each year.

Before you head to the dealership, take a moment to decide what monthly car payment you can afford.

In a nutshell, it’s smart to spend less than 10% of your monthly take-home pay on your car payment so you can keep your total car expenses under 15% to 20% of your income.

This might make you feel like you can only afford a dented Yugo. But there is an interesting caveat to this rule of thumb. This is called the balanced budget approach. That’s how it works.

Balance your budget, your life and your car payment

NerdWallet recommends using the 50-30-20 rule, which breaks down your net income into three general expense categories:

50% for needs like accommodation, meals and transport – in this case your monthly car payment and associated car costs (more on this below).

30% for wishes like entertainment, travel and other non-essential things.

20% toward savings, paying off credit cards, and meeting long-term financial goals.

The monthly payment on your car loan definitely falls into the “need” category. For many people, a car is a lifeline that connects them to vital tasks like running a job or transporting the kids to school.

However, the balanced budget approach offers some flexibility. If you want a more expensive car, you can consider part of your monthly payment as an expense in the wants category, as long as you keep the budget balanced overall.

While 10% of your net pay on your car payment may sound restrictive, you might choose to spend more on your car if you’re saving in other budget areas.

Find pre-approved car loans

Your payment isn’t your only car expense

Don’t forget that there are additional car-related expenses on top of your car payment. This includes insurance, gas, repairs and maintenance, parking and even tolls.

Many financial experts recommend keeping total car expenses below 15% to 20% of your net wages. So while your car payment is 10% of your take-home salary, you should spend another 5% on car expenses.

For example, if your monthly paycheck is $3,000, your car payment is about $300 and you plan to spend another $150 on auto expenses.

Avoid making a costly car payment mistake

Once you’ve determined the monthly car payment you can afford, consider what’s going on under the hood when the lender calculates your payment. Factors include:

The loan amount.

The annual percentage rate of charge or annual percentage rate that includes the interest rate.

The term of the loan.

You could be wasting a lot of money if you only focus on the monthly payment and ignore your overall financing costs. For example, look at how two very different loans can result in the same car payment.

Monthly Payment Loan Amount APR Term Total Interest $372 $12,500 4.5% 36 mos. $886 $372 $18,000 8.8% 60 mon. $4,315

Also remember that the interest rate on your car loan depends on your credit rating and other factors. Lower credit scores generally result in higher rates. It’s smart to compare offers to find the best interest rate on your car loan, but it’s especially important if you have bad credit.

While many people take out a longer loan to get a cheaper car payment, they often pay significantly more interest over the life of the loan. (NerdWallet recommends credits of no more than 36 months for used cars and 60 months for new cars.)

Get what you want – but stay balanced

Now that you know what car payment you can afford and how it fits into your budget, you’re better equipped to negotiate a good deal.

If you had to guess what the average new car price is these days, what would you guess? I estimated $23,000 since my Honda Fit is sweet for an economy car and is only $19,600 new. Since I’m frugal, leaving a 20% price buffer up seemed logical. Too bad I was far away!

According to Kelley Blue Book valuation analysts, the estimated average transaction price for a light vehicle in the United States in 2021 was $37,876. Expensive! In 2020, the average new car price was nearly $38,000.

It gets worse. According to Edmunds.com, the average new car price in 2021 is over $39,950. That’s crazy! The average new car price has increased in part due to production shutdowns and supply chain issues during the global pandemic.

For 2022, the average new car price is definitely over $40,000. With inflation above 8.5% and supply chain issues persisting, the cost of a new car is likely to remain high. Thankfully, used car prices are finally fading in 2022, having risen sharply since the pandemic began.

I’m guessing we must all be pretty wealthy because I don’t know many people with a median household income of $68,000 who can afford that average new car price.

Also surprising is that the average used car price has also skyrocketed. Due to the pandemic, more and more people are buying used cars and using public transport less.

Related: Is it possible to use a credit card to buy a car?

The average new car price is crazy high

Take a look below at the most popular car makes and models on the market today and their prices. Data is sourced from Kelly Blue Book to get the 2020 median car price of $37,876. Again, the average new car price in 2022 is over $40,000.

It seems absurd that the average new car price is $37,876 according to the Kelly Blue Book. But who am I to deny their millions of data points? So many people reading my 401,000 by age chart do that when they’re not on the right track. You go into denial.

I have accepted that the average new car price is so high now because demand is so strong and the average American is so wealthy! Forget the great recession and the pandemic. The economy is booming and people have money to spend. If people weren’t cashing in, prices would fall instead of rising to astronomical levels.

Below is a chart showing the average new car price of $39,950 and the average used car price of $23,169 in 2021. Mainly due to inflation and continued innovation, the average new car price continues to rise.

See also: What Your Car Says About Your Investing Style and Money-Making Acumen

The average price of used cars

Here’s a more startling statistic. The average price for used cars has gone up even more! Due to supply chain issues, the pandemic and increased demand, there simply aren’t enough cars to meet demand.

You could literally lease or buy a car for three years and even come out based on a 40% increase in used car prices.

The average new car buyer is rich

If everything is rational, we can also assume that the average new car buyer makes about $200,000 per year, or 5 x $40,000 based on a 50% discount on my 1/10 rule for car buying.

If all new car buyers followed my 1/10 rule, they would all make ~$400,000 a year. But I still have a long way to go to convince people not to throw too much of their money down the toilet, even though Financial Samurai has been around since 2009.

With so many people from public train attendants to 26-year-old programmers to food bloggers making over $250,000 a year today, $190,000 a year may not seem too far off for the average new car buyer.

The stock market is in a bull market. Meanwhile, real estate prices have recovered to pre-crisis levels, and even partially in some cities like San Francisco, LA and New York City.

Don’t overspend on a car

Spending more than 20% of your gross salary on a car when you could make mega bucks investing is completely irrational. Nobody I know would prefer owning a new car to being able to retire years earlier.

Also, those who don’t make $190,000 a year simply buy a used car for less. I’ve done this for all but one of the previous cars I’ve owned. Everyone knows that a car is one of the worst inhibitors to financial independence.

Therefore, it is clear that all new car buyers make around $190,000 a year. Used car buyers earn a lot less because cars depreciate in value very quickly.

Take a look at the table below. In five years, at an average depreciation rate, a $30,000 car will be worth about $12,000. Therefore, it is reasonable to assume that the average buyer of a $12,000 car will earn ~$60,000 per year, which is very close to the average household income today.

The average car loan size is absurd

Unfortunately, it turns out that most new car buyers probably don’t make anywhere near $190,000 a year. The reason I know this is because the average car loan is now $30,032!

holy hell Who on earth buys a car for $38,000 and then borrows $30,032 from it? Are consumers really that irresponsible? Borrowing a lot of money to buy a depreciated asset is the best route to financial destruction. At least when you borrow money to buy a house, the house has a chance to appreciate over the long term.

The last salvation of hope for Americans is that the $30,032 loan may be repaid over a very short period of time, like 1-2 years. nope The average term of a car loan is 68 months (5.7 years) – the longest average term ever! In case you’re wondering, the average car loan payment per month is $503, for a total payment of $34,204 over the 5.7 years.

The opportunity cost of borrowing money to buy a car is high

$30,032 borrowed for a car today would be worth ~$50,293 in 10 years. That’s based on a 5.3% annual growth rate when investing in the S&P 500 instead. If we use a 7.2% growth rate for the S&P 500, the $30,032 invested would be worth $60,140 in 10 years. Opportunity cost really is a car buyer’s worst enemy.

Even if the borrower decided to invest their average monthly rate of $503 on a car loan in the S&P 500 for 68 months, they would likely have invested over $40,000 if you put 68 x $503 = $34,204 dollars would have given.

So is it any wonder that those who are frugal or follow my 1/10 rule when buying a car end up being much ahead financially than those who are not financially disciplined? In 10 years, the $34,000 car will be worth less than $10,000 due to a ~70% depreciation schedule. However, the $30,000 investor could have investments worth 5-6x more!

If you invested $30,000 in real estate or the stock market 5 years ago, you would have $52,870 today

What drives up the average car price?

It still baffles me that the average net car price in the new decade is around $38,000. As someone who has driven a used $8,000 Land Rover Discovery for 10 years and more recently a $20,000 Honda Fit, the average new car price of $40,000 is hard to comprehend.

Undeterred, I continued to search for a reason for such a high average new car price when I came across the SF Bentley dealership and their new Bentayga SUV for $235,000 MSRP, $250,000 well appointed.

The car salespeople told me they can’t keep them in stock because demand is out of control. The same goes for their colleagues at Ferrari, Lamborghini, Mercedes, BMW and Maserati dealerships.

In other words, forget the top 1% who can barely afford a $250,000 vehicle. It is the super rich who have become super rich from the raging bull market!

The top 0.1% are converting more of their fun money into real assets before everything goes wrong like the last downturn. The super rich also see people like George Michael dying at 53 with megamillions. As a result, they tell themselves to live while they still can.

Maybe more people are truckers now?

money out of the tailpipe

So there you have it. The super rich and middle class who don’t read Financial Samurai spend like there’s no tomorrow. The super rich don’t care about rising interest rates. You pay in cash or lease vehicles as a business expense.

The middle class doesn’t care if they spend a lot on a new car because they don’t know any better. Eventually the middle class will be crushed again, but now let the good times roll!

If you have a business, consider buying a heavy SUV or truck so you can deduct the cost. This is a way for the typical American business owner to reduce the cost of a new car.

Achieve financial freedom with real estate

Instead of spending money on the average new car price, invest in real estate instead. Real estate is my favorite way to achieve financial freedom. It is a tangible asset that is less volatile, provides utility and generates income.

The easiest way to invest in real estate is through a publicly traded REIT, a private REIT, or a real estate syndication. Take a look at my two favorite real estate crowdfunding platforms. You can sign up for free and explore:

Fundrise: A way for accredited and non-accredited investors to diversify into real estate via private eREITs. Fundrise has been around since 2012 and has consistently generated consistent returns no matter what the stock market is doing. For most investors, investing in a diversified eREIT is the way to go.

CrowdStreet: A way for accredited investors to invest in individual real estate opportunities, primarily in 18-hour cities. 18-hour cities are secondary cities with lower ratings and higher rental yields. 18-hour cities also have potentially higher growth due to employment and demographic trends.

I have personally invested $810,000 in real estate crowdfunding across 18 projects. My goal is to take advantage of lower valuations in the heart of America. My real estate investments make up about 50% of my current passive income of ~$300,000.

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The average new car price will continue to rise after the pandemic due to supply bottlenecks. Inflation is likely to last longer. Therefore, it is important to invest to ride the wave of inflation while keeping prices low.