My Plan for getting a brand new car for FREE.
Updated: Sep 21, 2018
How to get a brand new car without spending any money from your own pocket.
If you have watched our "Why you should NEVER own a nice car" video you will now know that the smartest way to getting a new car is not to purchase one, nor to lease one... But to invest in an asset /investment which will pay for your lease. This way instead bleeding money in depreciation you will actually have an asset putting new money into your pocket.
Here is a detailed plan I made to evaluate each option:
BMW 1 Series
Option 1: Buy the car cash
No monthly payments to worry about
Own the car for life
No need to have a good credit score
Can resell anytime
Car will depreciate every single day
I will have to bear all maintenance costs
Loss of £3k per year (Opportunity cost of investing £15,000 @20% ROI)
Option 2: Leasing the car
£15,000 budget means that i can afford monthly payments of £300 over a 48 month period
Brand new car
Very little maintenance needed
Ability to drive brand new cars every couple of years
Will have to return vehicle when lease ends
£15k will be used up within 48 months
Option 3: Use an Asset to pay for the Lease
Instead of using the £15,000 to buy or lease the car I can invest it to create a monthly cashflow or yearly return.
For as long as the investment has an ROI (Return on Investment) of 25% per year, I can afford to spend £312.50 every month. (It is best to do the investment and the lease under a limited company for added tax efficiency.)
So here is what I would do:
Invest £15,000 with one of the property developers we know are currently offering returns of 30-35%.
Let’s assume that after 12 months I make a return of 30%, which equates to £4,500.
Post tax this will be around £3,900.
Use the £3,900 to pay the deposit (£839.24)
Use the remainder of the money (£3,060.76) to make the monthly payments for the year
Re-invest the £15,000 to generate a return for year 2.
Keep doing this (until I want to get a more expensive car!)
This way my hard earned £15,000 does not diminish and the car is not costing me anything from my own pocket!
Protecting my hard earned savings
All the pros of leasing
Have to wait a year to get return from investment. But this only applies to investments which give a return after 12 months. There are other strategies to get monthly cashflow.
So this is how it's done :)
IF YOU WANT TO FIND OUT MORE ABOUT HEALTHY HALAL INVESTMENTS CLICK HERE: