This is how you buy a Rolls Royce for “free”!

[derikfay]

First, if you don't have ATLEAST $5m in the bank you shouldn't be buying a $500k car. But for the keyboard warriors out there these numbers do work just as well as you scale down with far less principle.

Better then buying cars this is a solid strategy to buy anything (especially cash flow assets) as you change it from using your cash - to leveraging your cash into debt, to buy things and it becomes an offsetting tax transaction regardless of what you purchase. (And you maintain your principle+)🤔💰

[shahadathossen]

If I had 5 mil, I wouldn't have listened to you anyway.

[stefan]

5% yearly interest and 12% yearly inflation 😂

[xdve]

This is why you must be licensed in most countries to provide financial advise

[TheEggroll]

Not mentioning the tax on the gains or the interest on the line of credit

[paulblommel]

This is amazing. Why didn’t I know about this until now. I’ll just buy a $500k car while tying up $5, 000, 000 in excess cash to pay for it plus take out a line of credit at a higher interest rate. So smart

[farzana]

It only makes sense if the interest rate on the line of credit is lower than the investment returns.

[clarencepreston]

So how do I get the 5 million? Right now I’m about 4, 925, 000$ short 😭😭

[lazstan]

Pay cash and get 225k per year on 4.5 million. He's winning a part time Walmart greeter job

[ciudfhn]

Went to my bank and told them I need a loan for a Rolls Royce. They said, "Oh you need a loan for $500, 000?" I said no . . I need a loan for $5 million dollars, so I can buy a Rolls Royce!

[TheoriginalBacchuscleric]

Everything is free when you're rich.

[willychamp]

Just buy a 1998 Toyota Corolla and you will be a cool half a mil richer

[austinz]

You can’t even outpace inflation at 5%😂

[aipot]

The same applies to a regular car purchase. I had the cash to buy a Ford. I got 0% interest and $500 back for the 0% loan. Put the money in a CD making 5%. Also got dealer pricing. The interest made a payment a year.

[qucee-fu]

Don't forget to mention related taxes.
For example, in Australia a high interest account gets taxed about 50% for the dollar figures mentioned

[mrbrian]

Only works if the interest rate on the line of credit from the bank is lower than the return interest rate you make on the stocks.

[ghjkhuikk]

You know what’s a better financial advice? Don’t fucking buy a Rolls Royce

[ryanvanario]

You can also charter your toys so they pay themselves off, then become net positive

[ColbyAzimuth]

Another way is to just borrow 5 million, take it to Las Vegas and bet it all on red, to double the money. Then buy five Rolls Royce's with the winnings (after 50% tax), and you still have the original 5 million to pay back the loan. If you get it done in less than a month, then the interest charge on the 5 million is very small.

[OBJECTIVEVIEW-mc]

That line of credit is probably costs a lot more than %5, probably %12..So you pay off %12 with%5. What a genius.