You WIN, They LOSE – When You Buy a Car this Way


Spender, Saver, Wealth Creator, Who Wins?

There are 3 types of people buying a car. There’s The Spender, The Saver, and The Wealth Creator. Each one buys a car in their own way, according to their own preferred method of financing. Below is an example of what each person goes through during their lifetime, based on their chosen method.

THE SPENDER:  Borrow, then repay and repay, then borrow again.

Problems with borrow, then repay and repay:

  • I want a car so I take a loan.
  • I send money to the financing company that I’ll never see again.
  • When the loan is paid, I borrow again for the next purchase.
  • The financing company sets the term with rigid payment schedules, and I live BELOW the zero line.
  • Unless I save more than what I’m paying the financing company, my life will be in a continuous downward spiral where I’m continually giving up control of my money.
  • There are credit qualification requirements like proof of income and assets. There is more red tape to get approved for a loan or mortgage: credit score, proof of steady income and assets, even my social media views, and political affiliations may be taken into consideration.
  • But who’s getting rich? Not me. The financing companies are… Not to mention how it contributes to inflation.
  • It is hard to break out of this financial bondage, but breakout I must!



THE SAVER: Save and save, then spend

I’m a saver and I must say, it’s pretty genius paying cash for a car instead of taking out a loan and paying interest. What I do is save until I have enough money to pay for what I want to buy. I cut back my lifestyle. I eat out less. Shop at Value Village, and Winners. For me, it’s all about scrimping and saving on stuff, sacrificing, budgeting, eliminating, and cutting back my lifestyle. The message I often hear from financial gurus is that “you can shrink your way to wealth.” But the truth is, I’m not happy. What good is money if you can only use it once?

Problems with save and save, then spend

  • So now I have enough to pay cash for a car, and I withdraw it all. How much compounding is happening on that money? How much am I losing?
  • Einstein called compound interest the “8th Wonder of the World”. Did I just give up the eighth wonder of the world? I didn’t pay interest, but didn’t I lose the accruing interest for the rest of my life?
  • Then I do it again. I’m saving for my next vehicle and paying cash.
  • Over my lifetime I’ve been interrupting compound interest over and over.
  • It’s like cutting down the apple tree to get the apples. No one would do that, yet we do it all the time with our money.
  • This is why Canadians are facing a headwind where up to 34 cents of every dollar is going to paying interest or losing interest when we pay cash!
  • All I’ve been doing is greasing the wheels of the banking industry and making them rich like they’ve trained us to do.
  • I LOSE, even though some gurus say I’m winning.
  • It is hard to break out of this reductionist mindset, but breakout I must!



THE WEALTH CREATOR: The Infinite Banking Concept

A few years ago I thought to myself, “wouldn’t it be cool if I could pay cash for my vehicles and NEVER interrupt the compound interest?” A number of people proceeded to tell me, “That sounds illegal…. It sounds too good to be true…. It’s not possible…. If this was true everybody would be doing this”. But I continued searching for a way and came across the Infinite Banking Concept, a tried and true strategy used by the wealthy for generations. Here’s what I discovered:

The Process:

  • You can take a loan against your cash value (CV)
  • The insurance company lends you their money
  • Your CV grows tax-advantaged and remains uninterrupted

Repaying the Loan:

  • The interest you pay goes to the insurance company
  • All the principal goes to you so that you can reuse it
  • AND they pay you a dividend


  • You’ve made the switch from giving up your money to keeping your money compounding while using it



  • Infinite Banking is a blend of spenders, savers, and bankers all at once! What that means is people like you and me can become our own banker, and ultimately fulfill the banking function in our own lives!
  • Instead of all our income going toward monthly bills which include a mortgage, utilities, food, gas, etc., like we have been taught to do, we add just one step to the process and change where that money goes before it can be spent anywhere else.
  • We put money into our Infinite Banking policy. It’s where we store wealth.
  • Question: If this was your “bank”, would you want your deposits to be small or large? You would want them to be as large as possible.
  • Money must reside somewhere. Rather than keeping it in a bank where it earns practically nothing, we put it into our whole life policy where it gets a competitive return and grows tax-advantaged.
  • But we don’t just keep it there. We also use it!
  • We get multiple uses out of one dollar: We get a death benefit, we create a pool of capital that grows and compounds tax-advantaged so that it will be there to supplement our retirement, and when we borrow against our cash value, it continues to grow and compound without missing a beat as though we hadn’t touched a loonie of it.
  • We’ve moved from a middle-class mindset: “I drained my bank account for a purchase” and moved to a wealthy mindset: “How can I make that purchase and get my money back”?
  • We’ve made the switch from giving up our money, to NOT giving up our money for anything, ever! We are now treating our cash as capital (when we understand what capital can do for us, we never want to part with it)!
  • That’s what banks do, and that’s what an Infinite Banking policy allows us to do. When we don’t do it, it feels like we are stealing from ourselves.
  • It also doesn’t contribute to inflation.
  • I WIN! You WIN! We ALL WIN!
Will Moran

Will Moran

Will has published numerous articles as well as two books on Infinite Banking and taking back control of the money you are giving away to everybody else. His most recent book is Think Like a Banker.

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