Warren Buffett Drives A 10-Year-Old Discontinued Cadillac XTS He Purchased With Hail Damage — 'I Have Everything In Life I Want'

Despite being the sixth-richest person in the world with a net worth of $131 billion, Warren Buffett still drives his discontinued 2014 Cadillac XTS. Although he could afford any luxury car, from a Bugatti Centodieci to a McLaren F1, Buffett opts for the practical, 10-year-old car that he originally bought with hail damage.

Buffett sent his daughter Susie to buy a new car for him in 2014. She chose the Cadillac XTS to replace the 2006 Cadillac DTS that he had driven for eight years and racked up only 19,000 miles. 

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She disclosed in a BBC documentary that her father’s frugality extends to buying cars with cosmetic damage, which are cheaper and functional after repairs. 

“You’ve got to understand, he keeps cars until I tell him, ‘This is getting embarrassing — time for a new car,'" she said.

Buffett's approach to vehicle ownership reflects his broader philosophy on wealth and consumption. He emphasizes that after achieving a certain level of comfort, further spending does not necessarily enhance quality of life. 

“I have everything in life I want; it’s a very simple thing. If there’s anything that money could buy that I wanted, I would do it this afternoon without hesitation,” Buffett said at a Berkshire Hathaway meeting years ago.

His practical view extends to the efficiency of his time as well. Buffett has noted the time-consuming nature of purchasing a new car, which includes hours spent on selecting the model, completing the purchase process and understanding the new vehicle’s features. 

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“If it would take me probably a half a day to go through the exercise of buying a car and reading the owner’s manual and all that, and that’s just a half a day I don’t want to give up in my life for no benefit,” he said.

In a 2012 interview with Charlie Rose, Buffett shared a perspective that sheds light on his approach to possessions.

“I have every possession I want. I have a lot of friends who have a lot more possessions. But in some cases, I feel the possession possesses them, rather than the other way around,” he said. 

This statement reflects his broader philosophy of not allowing wealth to dictate his lifestyle. 

Buffett's frugality is well-documented and aligns with his value-focused investment strategy. He understands that buying a new car every few years isn’t a good investment. Even though he could easily afford to lease a new car and write off the expense for business, he chooses not to. Buffett sees no point in incurring expenses that don’t add value to his life.

His choice of a simpler, less extravagant car and lifestyle poses a challenge to the common societal practice of flaunting wealth through expensive purchases. It prompts a reevaluation of the need for luxury cars, which are often depreciating assets that many people might not need or can afford. Buffett’s approach and car-buying habits are a powerful reminder that wealth isn’t just about accumulating money; it’s about using it wisely and prioritizing what matters in life.

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