Should you buy or lease a car?

Question

Rich Dad · Accepted Answer

If it has wheels and loses value every day, it’s not an asset — it’s a shiny liability.
Here’s the truth: buying or leasing a car is not about the car — it’s about what else your money could be doing. If you’re using cash or a loan to buy a personal vehicle, you’re parking money in a depreciating metal box. That money could be invested in assets that pay you monthly. I’d rather have dividends, rental income, or business cash flow cover my car payment than trade my time for it.
Leasing? It’s just long-term renting with restrictions. Buying? Slightly better — at least you own the liability. The smartest move? Buy a reliable used car with cash, keep it boring, and invest the difference aggressively. If you want the luxury car, earn it from passive income — not your paycheck. Drive assets. Not ego.

Poor Dad · Answer

A car is transportation, not a status symbol — don’t let it become a financial anchor.
Buying is usually the safer financial choice if you plan to keep the car long-term. Once it’s paid off, you eliminate monthly payments and can drive it for years while only covering maintenance and insurance. That’s stability. Leasing may look attractive because of lower monthly payments, but you’ll always have a payment and mileage restrictions to worry about.
Be careful about stretching your budget just to drive something new. Choose a dependable vehicle within your means, preferably with a manageable loan or paid in cash. Think about insurance costs, fuel efficiency, and long-term reliability. Your future self — and your retirement account — will thank you.

Should you buy or lease a car?

Rich Dad Says

Poor Dad Says

Whose advice would you follow?

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