A property investment expert has gone viral for revealing a financial strategy she says millionaires live by: never buy a car—always lease it.
Abi Hookway, an investor and popular TikTok creator, shared a video that’s racked up over 6.8 million views, claiming that buying a car is one of the biggest mistakes for anyone trying to build wealth.
“Rich people don’t buy cars. They invest in assets that generate passive income and use that money to lease a brand-new vehicle,” Hookway explains.
📉 Why Millionaires Don’t Buy Cars
According to Hookway, a car is a rapidly depreciating asset—it loses value every year and produces no financial return.
Instead, the wealthy prefer to invest their capital in assets that appreciate—like real estate, stocks, or businesses—and use the income from those investments to cover a car lease.
“Say it with me: We lease liabilities and we buy assets,” she emphasizes.
📊 What Other Experts Say
This approach isn’t just Hookway’s opinion—many financial analysts agree.
- David Bach, a self-made millionaire, calls buying a brand-new car “the single worst financial decision millennials can make.”
- According to GoBankingRates, a new car can lose up to 20% of its value in the first year and as much as 60% after five years.
To avoid steep depreciation, some recommend buying lightly used cars between 3–5 years old, which often still have warranty coverage and have already passed any recall issues.
📏 The “1% Rule” for Leasing
One popular method for spotting a good lease deal is the 1% rule:
💡 If your monthly payment is equal to or less than 1% of the vehicle’s total value (including taxes), it’s considered a great deal.
However, leasing has its drawbacks—most contracts come with mileage limits (usually 12,000 miles per year), and exceeding them can cost you extra. If you drive a lot, buying might still be cheaper in the long run.
✅ The Bottom Line
The decision between leasing and buying ultimately comes down to lifestyle:
- If you want to drive the newest cars with the latest tech every few years, leasing makes sense.
- If you want to save money over time, buying a reliable used car could be smarter.
But for millionaires, the golden rule is clear: buy assets that make you money, and use the returns to pay for your luxuries.
