HOW THE RICH BUY CARS VS AVERAGE PEOPLE | ELLIOT WISE

This is just a quick video behind the mindset of the wealthier businessman and women I have had the pleasure of knowing and working with.

The concept of purchasing assets (working capital) to fund your more silly purchases (liabilities) is a fantastic way to ensure that you limit the financial inflexibility from these indulgent purchases!

Please comment with your opinion. If you do not agree please let me know why!

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[aarw]

For financing a car in this manner to make sense, the return on the investment would need to exceed the interest rate on the car loan. I'm not sure there are too many investments or asset classes that can return greater than the 11% APR most finance deals are currently offering. Additionally, let's take property as a good example, I have a rental property that returns approximately 10% gross rental yield. However, this doesn't account for maintenance and repair, which typically equates to ~2% of property value per annum. Money is made on the capital appreciation for property, not the cash flow. Additionally, let's then also look at the S&P 500 - average return is around 7-10% per annum. Right now, with interest rates where they are, this doesn't make sense.

[tzuqbts]

Imagine you go through with this method, then the government enacts an 18 month eviction moratorium so you cannot kick out the tenants who aren't paying you for 18 months. Easy way to lose everything. Debt is a risk, and most people don't calculate in that risk when looking at something like this.

[ivpt]

Ok so I need to make money to afford things. Got it

[JAMPROSOUND]

High pass filters are great. Use them.

[JustinWilkins]

Great video and I 100% share the same opinion on this topic

[helponyouten]

provided such valuable insights into the different approaches the rich and average people take when buying cars. It's fascinating to see how mindset, financial strategy, and priorities differ between the two groups. Understanding these distinctions can help us make more informed decisions about our own purchases and financial goals. Thanks for shedding light on this topic, Elliot Wise

[BulkyHealthyCat]

Dont know lmao my father is rich he bought me first car in 2012 it was 2010 camry v6 it was used I still have it but looking for an Cadillac escalade 2022

[Zachary]

If you are rich in the UK, you would probably be of normal income in Singapore. A Bentley Continental GT costs around 800k-900k.

[dailyselfimprovementredpil]

Basically saying he uses certain things to pay off things Just like people do when they buy homes they use other homes to pay off the homes but you're still using your money it's still money that you accumulate from your business to use to buy a car or a home there's no way of getting around paying the shit it's just a different way of paying it and if you pay payments you're paying more

[premsworldfamily]

hi elliot on something like this do you pcp it and then upgrade after 3 years or do you always hp your cars?

[jamesarcer]

Did you see my earlier comment mate? How much was the 68 plate Bentley!? Is that your new car now? Really shows how the other half live!

[jamesarcer]

Hi Elliot,
How much would a 4 bed rental yield be and would it be able to fund a proper luxury car like a Ferrari or something like that?

What happened to the white Bentley you used to have in old videos? Is the blue one your new motor?

Keep the videos coming! Really nice to see how the other half live
James

[alexreed]

Interesting watch.
I actually went to school with you. Would you want to catch up and discuss in person at some point?

[jvendetta]

First I want to say love your work my name is javan and I am from Jamaica I am looking for some help financially wise I would be most grateful if you could reply

[kateausten]

The deposit would be 30-40k, this video is nonsense

[jamesarcer]

Hi Elliot,
I followed your advise and looking at purchasing 2 bed flat in Sussex for £400k Thursday and will put it up for rent too.

Slightly concerned because I had the 40k deposit but still have a mortgage on the property so rental income will be covering that.

I don’t feel like it’s going to generate enough to even fund a fiesta ST or any vehicle at that rate given that the mortgage is now a liability.

I did enjoy your videos but feel like having acted on your advice in hindsight it’s not the best.

If you had 50k how can that buy a house?

Thanks
James

[thekrazyasian]

I'm not sure if this is the right way to go about it

For example. If i want to buy a car that costs $300, 000

Instead of 300k in a car, I buy an asset that is worth 300k, the yeild from that is likely to be 7%, which is 21k, meaning $1750 per month

This is DEFINITLY not enough to cover a car that costs 300k, maybe a cheap car, but then i wont be getting the fancy car i want.

[AmanSS]

I would never buy a car like this from my own money I would rather lease it this way I can trade up, or have enough rental income from Esther your rental business or other business that pay you month after month then you can lease it. Or trade up for a different car lease every year. Thee cars only attract attention that you don’t want. From people . If you are a real estate agent and need to attract wealthy clients then I see it makes sense to lease this car.

[Molloy]

Funny to see this youtuber felt comfortable enough to wear his ballet leggings to present us this video.