Jayson Lowe argues that cars drain wealth through purchase price, loan payments, insurance, maintenance, fuel, and taxes. Every vehicle you own represents money permanently transferred to lenders, dealers, insurers, and the government. He calls this a cycle of payments that erodes capital over a lifetime.
This is a question that has an obvious answer. How much money do you have from those cars? All those cars today? Zero. The money is gone. And if you think of how many more cars you and your family are going to need over the remainder of your lives, how much of that capital that you're going to pay for those cars do you want flowing away from you permanently on a go-forward basis? Everybody's responding zero. If you think of how you're structured Financially today, you've got car payments, the money's permanently transferred away. You've got credit card payments, the money's gone. Loan payments, money's gone. Cash, the money's gone. You earn income, you're taxed on that income. All of your money flows onto the books of someone else's bank. You're repeating that cycle over and over and over again.
