Video ID: kEC0ZGwiWag
YouTube URL: https://www.youtube.com/watch?v=kEC0ZGwiWag
Added At: 28-06-25 23:55:13
Processed: No
Sentiment: Neutral
Categories: Finance, Education
Tags: car lease, financial freedom, Toyota Corolla, Honda Civic, Hyundai Elantre, personal finance
Summary
The host advises against leasing cars, recommending to buy a reliable car outright and make payments to oneself. They share their father's strategy of buying a new car every 5 years, making payments to himself, and using the money to buy the next car.
Transcript
Is it bad to lease? Bad to lease what now? A car. Financially, probably. Uh, no question. Uh, it depends on on where you are in your life. You know, there are certain things that are not financially optimal. But if you're wealthy enough, it doesn't matter. So, yeah, I would not if you're trying to build your wealth. No, I wouldn't I wouldn't lease a car. I also wouldn't take a car payment. I've never had a car payment. You just bought outright. Yep. Go to the dealership. Yep. Yes. I will take the Toyota Corolla, right? Full MSRP. That economy box and then you're done. Yeah. Yeah. And that was something my dad taught me. So I mean Yeah. This is this is how it works. That's what he would do. He buy Now, you know, there's a lot of people that have made a lot of money that have said that with a depreciating asset, just lease it and every two to three years you'll get a brand new. And if you have a lot of money, that's probably not a bad thing to do. If you want a brand new car every few years, my dad bought a new car every 5 years, right? And what he would do is the moment he bought that car, he would start making a car payment to himself to his bank account. Same way as if he was paying it as a loan, right? Only now that payment is going into the bank and he's being paid interest by the bank instead of the other way around. And at the end of 5 years, he takes that money and he buys the next car and starts the cycle over again. Now, the question that is in everybody's mind at this point, well, that sounds great, but how do you buy the first one, right? How do you get there? And the answer to that question is real simple. You buy some really cheap shitbox and you drive a really piece of crap for 5 years while you making those car payments. It's not hard. It's not rocket science. And then you never have a have a car payment again. Uhhuh. I love that. I love the way you describe a Honda Civic. Well, I have nothing against I mean, but I know exactly the type of car that you're talking about. Right. Right. But you're talking about a specific model of car that you can literally drive into the ground. Yeah. Till the wheels come off. That's the Honda Civic, the Toyota Corolla, the Toyota Camry, and if you're feeling really spicy, the Honda Accord. But that's your piece of box that you Yeah. And and they're even more beyond that. Sure. You know. Yeah. Hyundai Elantre. Yeah. Let's get into the part I hope Hyundai and Toyota and Honda are all sponsors of the program. I would love for them to be sponsors of the program. And I think if they fully embrace that of like we will be the shitbox that gets you to financial freedom.