Whether you love or hate Tai Lopez, we all know he is a wealth of knowledge.
And while the internet is trying to figure out if he leases his exotic cars (he does, he admits it now)…
Tai is right again – giving blanket advice about our second most expensive monthly bill is dangerous.
In this video, Tai reveals his secrets and suggestions on whether to lease, rent or own:
Here are my quick notes on what Tai recommends about buying, leasing and renting:
There is no one-size fits all when it comes to getting into a new car.
Tai recommends to ignore those who say, “Buying a new car is always the best way to go.”
Because making blanket statements is a surefire recipe for disaster.
Instead, Tai recommends we look at each situation on a case-by-case basis.
Of course, always consult a tax professional…
Because each state has a different tax structure. Some states (like Georgia) are not “lease friendly” and tax the entire purchase price into the lease payment. Yet most other states only tax based on the smaller monthly payment.
And business owners who lease vehicles get to use most of the monthly payment as a tax deduction.
Opportunity costs (highest use of capital)
What is the best use of cash on hand?
For example, leasing frees up our cash (which can be better invested in a higher ROI).
Instead, we can use the cash to pay off high-interest credit cards, invest in stocks – even invest in our own business. This is often the best use of our limited capital.
Lease incentives vs. purchase incentives
Not all car rebates and incentives are alike – even on the same car. For example, a BMW X5 might have more lease incentives than a purchased BMW X5.
Length of stay
We should ask ourselves, “How long are we going to be driving the car?”
For example, if we get into a temporary 6-month special assignment – it might make sense to rent a car from Hertz or Enterprise Rent-A-Car.
But, a lot of people like getting into a new car all the time. They do not want to hassle with maintenance and repairs. And leasing is roughly the same cost to drive each mile than buying the same car.
On the flip side, if we like fixing our own car and plan to live in the same place for the rest of our life, buying a car might fit the bill.
How to lease almost any new car at the absolute lowest price (and no money down)
If you like the idea of getting into a new car at about half the price of buying – with no money down, leasing might be for you.
Here are several case studies I have documented: