Let’s say you’re ready to buy a car. You’ve got a few options in front of you: lease it, finance it through a dealer or a bank, or just pay cash. Straightforward, right?
But here's the real question: what’s the most efficient way to use your money?
Let’s break it down.
Option 1: Traditional Bank Loan
Say you finance a $40,000 car over 5 years at 6% APR. Your monthly payment is around $773, and you’ll pay about $6,380 in interest by the end of the loan.
That’s money out of your pocket — forever.
Plus, once it’s paid off, the car has depreciated, and the bank made more from the deal than you did. You're left with a vehicle that’s worth far less than what you paid, and you’ve lost access to the capital (and opportunity) you used to repay that loan.
Option 2: Dealer Financing
Often advertised as quick and easy, dealer financing may include low intro rates or "special offers" — but you’re typically paying more for the car overall.
Manufacturers sometimes bake the cost of financing into the sticker price. You might save a little on interest, but you’re likely overpaying on the vehicle itself. Dealers make their money on the financing, not just the car.
So again: you’re giving up capital and future opportunity for short-term convenience.
Option 3: Pay Cash
Seems smart. You avoid interest and own the car outright.
But here’s what most people don’t think about: when you pay $40,000 in cash, you forfeit the opportunity to earn interest on that $40,000 — not just now, but for the rest of your life.
Even at a modest 4% annual growth rate, that same $40,000 — left to grow — would become:
- $87,039 in 20 years
- $129,504 in 30 years
- $192,209 in 40 years
That’s up to $152,000 in potential future growth lost… to buy a car that depreciates from the moment you drive it off the lot.
Option 4: Capitalize First (Infinite Banking)
This is where Infinite Banking changes the game.
With a properly designed whole life policy, you can build cash value — and borrow against it at any time. That loan is collateralized, not amortized. Which means:
- You keep earning dividends on the full $40,000 (even while it’s collateralized for the loan).
- You pay simple interest, not amortized interest — and it’s often lower than bank or dealer rates.
- You repay yourself — on your terms.
So in this case, you get to:
✅ Buy the car
✅ Keep your $40,000 growing uninterrupted
✅ Pay less in interest over time
✅ Maintain control and flexibility
Think about that: you’re using your money without losing your money.
Let’s Run It Side-by-Side
The Bottom Line
It’s not about the car. It’s about how you use your capital.
By capitalizing first through Infinite Banking, you gain the ability to earn interest and spend — simultaneously. Even if you only earn 4%, the compounding over 30–40 years adds up to a six-figure difference.
That’s not about "strategy" — that’s just math.
If you’re planning to buy vehicles for the next several decades (for yourself, your spouse, your kids...), the difference becomes exponential.
Want to see what this could look like for you — not in theory, but in actual numbers? Let’s take 30 minutes and walk through it.
No pressure. Just options.
Because the goal isn’t just to drive — it’s to drive smarter.
