Jayson Lowe (YouTube, Feb 1, 2021) explains how Canadians typically buy cars—paying cash, financing, or leasing—and critiques each method: cash causes 'lost opportunity cost', financing funnels payments into someone else's bank and requires credit approval, and leasing means you pay for another owner's asset. He introduces 'becoming your own banker' (infinite banking) as an alternative that changes the money flow so funds return to the buyer rather than leaving them.
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So can I explain to you how a person can leverage the process of becoming your own banker to purchase vehicles?
Okay, here we go. I'm going to cover 99.998% of the Canadian car buying public right now. Option one is you pay cash. And in order to do that, you got to save money in someone else's bank. So I'll say that again. Someone else's bank. You pile up the money in someone else's bank, you withdraw it all, you go buy the car. You achieved your objective of buying the car, but you gave someone else all the money. You can't earn interest on it again. You can't spend it again. It's a permanent transfer away from you and from every generation that comes after you. That's called lost opportunity cost. Now, I'll share with you that there are very few people who have even a rudimentary understanding of the impact of lost opportunity costs. It has a far greater impact than net worth ever will. And so the second option is financing, where you have to jump through the credit check hoops. You have to go through the toll taker, the gatekeeper to, you know, qualify to access someone else's pile of money. Say that again. Someone else's pile of money. And you don't own anything until you make the final payment. And every payment you're making is a deposit into someone else's bank. Think about it. The third option is leasing. Now, I hear from business owners all the time, gosh, my accountant told me leasing was the best thing to do. I get to write it off. That's great. Well, do you think the person who bought the car that you're leasing is dumb? It's the stream of payments that's the asset. So those are the three methods that most Canadians deploy to buy cars. I would ask anyone who's listening to this, how many cars have you financed, leased, or purchased with cash up to this point in your lifetime? And how much money do you have? You got all the cars, someone else got all your money. So if you want to leverage the process of becoming your own banker, we're not going to change your objective. Your objective is still going to be to buy a car. You're just going to change the process by which you go about buying it. And when you implement it, you'll change the flow of the money. The money's coming back to you versus flowing away.
