The chance that you live for 70 years after you have an extra $40,000 to invest is highly unlikely unless you started out wealthy. Also, you will not get 7% annual interest on $40K.
Edit: Let me expand. You won't get 7% real returns on $40K. Yes, the S&P500 can return that much, but that's before inflation.
OP was comparing the cost of a car now to the average wealthy person's inheritance now, which isn't a fair comparison. You have to account for inflation over 70 years.
Edit: Let me expand. You won't get 7% real returns on $40K. Yes, the S&P500 can return that much, but that's before inflation.
OP was comparing the cost of a car now to the average wealthy person's inheritance now, which isn't a fair comparison. You have to account for inflation over 70 years.