Charles Barkley says he was an 'idiot' for owning 3 or 4 luxury cars when he got rich

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Former NBA star Charles Barkley shared in a podcast interview that it took a reality check from his mentor, Dr. J, to help him learn some financial wisdom.

"I first was an idiot when I got my money," the 61-year-old said. "I had like three or four cars...Dr.J says, 'How many of those cars can you drive at the same time?'" Barkley recalls. "'Why you got four? This money got to last you the rest of your life.'" (1)

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This shifted his perspective on money and cars forever. Here's why abandoning the car obsession could change the lives of ordinary Americans, too.

It's not just celebrities and professional athletes splurging on automobiles. The average American family owns more cars, spends more on them, and drives further than their counterparts in the rest of the developed world.

In 2022, there were 860 cars for every 1,000 people in the US. By comparison, there were 677 in Canada and 627 in Germany. Most US households (91.7%) had at least one vehicle, and 22.1% of households had three or more vehicles, according to the Department of Transportation (2). The average American commutes 41 miles a day, much more than the average of 18 miles in the EU (3).

Additionally, American drivers spend 96 billion hours behind the wheel each year (4). It's no surprise that, along with the cars themselves, gasoline is one of the biggest recurring household expenses in the US.

In addition to this, our car obsession is costlier than you may think. Data from Experian found in the first quarter of 2026, the average auto loan for a new car was $43,925, with a 6.39% interest rate and monthly payments of $770 (5).

Simply put, families can save a lot of money by opting for cheaper cars, using public transport, or sharing.

That was Dr. J's recommendation to Barkley as well. He said, "Son, don't waste your money on cars. Everyone knows who you are. If you bought a car for $70,000 or $80,000, instead of $300,000, you would've had $200,000 more in the bank, and it would have been growing and growing."