What do the 1 percenters drive? Not what you think!

 

 

The top 1% aren’t buying Bentleys, Lamborghinis or Ferraris. Instead, the country’s most affluent car buyers are driving off in a new…Jeep?

The most popular cars among residents in 15 of the 25 wealthiest zip codes in the U.S., where median home prices range from $3.4 million to $6.7 million, include those typically associated with middle-income buyers. Even buyers with plenty of disposable income to spare — think Silicon Valley — are opting for a luxury car that’s more of a social statement than a financial one. The Tesla Model S, the first luxury all-electric vehicle, accounted for most car sales in eight (all in California) of the 25 most expensive zip codes, according to Edmunds. It has a starting price of roughly $71,000 though most purchases are in the $90,000-plus range.

To be clear, it’s not that the affluent aren’t buying super expensive cars but those purchases tend to occur less often, says Jessica Caldwell, senior analyst at Edmunds. Secondly, these lower-cost cars are probably adding to an arsenal of cars they already own.

Here are the five cars most in demand by the 1%

 

Tesla Model S

Starting price: $71,070

Several electric cars came to the market before it, but the Tesla Model S is the first luxury electric ride that actually looks like a luxury car -- and it’s resonating with affluent buyers. Just over 12,100 of these cars sold during the first nine months of the year, according to Edmunds.com. Year to date through August it had double-digit market share of all new car sales in the most expensive zip codes in California’s Portola Valley, Los Altos Hills and Atherton where median home prices range from $4.3 million to $6.7 million. “It’s the new it toy to have,” says Caldwell.

Analysts say it’s poised to be the first successful marriage of high-end design with a futuristic look wrapped up in an eco-friendly car. The Model S can cover over 200 miles after charging on a 60 kWh battery pack and includes amenities such as dual-zone climate control, seven-speaker stereo system, and a backup camera similar to most high-end new cars.

The car manufacturer hasn’t been without setbacks. Tesla shares fell 17.3% in October — a decline that started after a YouTube video showed the car ablaze after an accident. Still, analysts say demand for Tesla could pick up going forward. The car manufacturer is expected to begin selling a crossover SUV next year and a $30,000 car in the near future.

 

 

Mercedes-Benz E-Class

Starting price: $51,905

For much of this year, most wealthy New Yorkers have been buying midlevel Mercedes models, including the E-Class sedan. Billed as an executive-class vehicle, it suggests stature without attracting too much attention, which may be favorable for someone trying to stay under the radar. Similarly, the Mercedes GL-Class SUV, with starting price of roughly $63,300, has been in high demand.

Also making the list is the C-Class, the company’s entry-level vehicle with a starting price of around $36,000. The C-Class accounts for about 29% of all Mercedes car sales during the first nine months of this year, according to Edmunds. Among the wealthy, these cars are likely purchased as gifts to lucky teenagers and 20-somethings.

Jeep

 

Jeep Grand Cherokee

Starting sticker price: $28,690

The latest changes to the Jeep Grand Cherokee have given it a somewhat sleeker and high-end look for what’s supposed to be another rugged, sporty SUV. That seems to be the perfect fit for wealthy families in Newport Beach, Calif. Residents in another coastal wealthy enclave, Long Island’s Sagaponack, have been buying its sportier counterpart, the Jeep Wrangler whose sticker price starts at just shy of $24,000.

Could the wealthy revive demand for Jeep models? Sales are down about 3% during the first nine months of the year compared to the same period a year prior, according to Edmunds.com. Parent company Chrysler’s majority owner, Fiat, is trying to reboot Jeep by adding some of its Italian feel to new models, though it remains to be seen if changes will resonate with buyers.

 

BMW 3 Series

Starting price: $33,475

Neither the 7 series nor the 6 series, which are among the most expensive BMW sedans, made the list of top cars so far this year for the most affluent. But the 3 series — BMW’s entry-level model — did, according to Edmunds. It’s the most popular car in Coral Gables, Fla. for retirees who want to keep attention away and for the affluents’ children and grandchildren.

In general, the 3-series is having a moment. During the first three quarters of the year, more than 75,000 of these models sold — a 15.5% increase from the same period a year ago, according to Edmunds.com. They also account for the largest share — 35% — of all BMWs  that sold during the first three quarters of the year.

 

Ford F Series

Starting price: $25,065

What car do you buy when you have lots of cash and live in a city where it can snow more than four months out of the year? In Aspen’s most expensive zip code, where the median home price is $4.2 million, affluent buyers are opting for the Ford F trucks, including the F-150 or F-250.

Ford   F-series sales are actually the highest nationwide: More than 550,000 sold during the first nine months, up 21% from a year ago, according to Edmunds.

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