Warren Buffett's choice of vehicle has become a topic of interest among many people. Renowned for his frugal and simple lifestyle, the billionaire investor drives a 2014 Cadillac XTS. While some billionaires indulge in extravagant cars as a visible symbol of wealth and success, Buffett's preference for older models reflects his unique approach to life and finances.
Buffett's frugality and minimalist mindset have been key factors in his tremendous success as an investor. His ability to seek value in all aspects of life, not just business and investments, has shaped his distinctive financial philosophy. When it comes to cars, Buffett has a clear aversion to the rapid depreciation experienced by new vehicles. Instead, he opts for used cars that offer significant discounts because of cosmetic issues like hail damage.
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In a 2014 interview with Forbes, he revealed that he only drives about 3,500 miles per year, so there's really no need to replace his car often. After driving his 2001 Lincoln Town Car for a decade, Buffett auctioned it off for charity and replaced it with a 2006 Cadillac DTS. He drove that car for eight years, until replacing it with his current 2014 Cadillac XTS.
At a Berkshire Hathaway meeting years ago, Buffett explained his rationale for his car choice, stating, "Actually, I picked out the car I have based on the fact that it had airbags on both sides. So that was a factor and maybe the first car of its type ever made with airbags."
Safety, in addition to affordability, plays a crucial role in his decision-making process. Buffett acknowledged there might be safer options available, such as heavy-duty trucks, but explained he personally preferred his current vehicle at the time.
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His daughter Susie Buffett humorously shared an anecdote about her father's attachment to his cars in a BBC documentary, stating, "You've got to understand, he keeps cars until I tell him, 'This is getting embarrassing — time for a new car.’” She also revealed he sent her to purchase his most recent car, the now-discontinued 2014 Cadillac XTS.