The BEST and WORST Cars (And Which Brands We Avoid) - Money Guy Show Recap

Podcast: Money Guy Show

Published: 2026-03-18

What Happened

Brian Preston and Bo Hanson delve into the financial implications of car ownership, emphasizing the significant burden of car payments. They note that one in five people have car payments over $1,000, which requires an income over $150,000 according to the 23.8 rule. This rule suggests putting 20% down, financing for no more than three years, and ensuring payments do not exceed 8% of gross income.

The hosts highlight insights from millionaire clients, where 60% paid cash for their current cars, while 40% financed. Interestingly, 72% of these clients financed their first car, illustrating a shift in financial strategies over time. They discuss the importance of aligning car purchase decisions with broader financial goals, such as wealth building and investment priorities.

The episode explores various car brands, focusing on maintenance costs and depreciation. BMW and Mercedes are identified as expensive to maintain, while Land Rover is deemed costly and impractical. Tesla, despite its rapid depreciation, presents a good opportunity for used car buyers. In contrast, Toyota holds its value best, making it a wise choice for those concerned with depreciation.

Brian and Bo recommend Lexus as the best brand for purchasing used vehicles, based on Consumer Reports' findings. They caution against brands with high maintenance costs, such as Volkswagen and Volvo, which have had reliability issues in the past. Jeep is noted for holding its value well but is seen as impractical for families.

The hosts introduce the Moneyverse, a new community space for financial discussions and connections, encouraging listeners to engage with like-minded individuals. They also address various listener questions, providing financial advice tailored to specific situations, such as mortgage strategies and investment options.

Listeners are advised to use their 20s and 30s to capitalize on the wealth multiplier effect, focusing on building wealth rather than solely paying down debt. The importance of starting to save and invest early is emphasized, with the wealth multiplier for a 17-year-old being $119 for every dollar invested by retirement.

Brian shares personal stories, including his experience with the Tesla Model 3, which he purchased as an early adopter. This decision also led him to invest in Tesla stock, highlighting the potential benefits of aligning personal interests with investment strategies. Other anecdotes involve successful investments during financial downturns, underscoring the potential of strategic financial decisions.

Key Insights

• The 23.8 rule is a financial guideline for car purchases, recommending a 20% down payment, no more than three-year financing, and ensuring payments do not exceed 8% of gross income. This rule is crucial for maintaining financial health when buying a vehicle.
• Among millionaire clients, 60% pay cash for their cars, while 40% choose financing. This contrasts with their earlier years, where 72% financed their first car, highlighting a shift in financial priorities as wealth grows.
• Toyota is deemed the best brand for holding value, according to Kelly Blue Book, while Lexus is recommended for used car purchases based on Consumer Reports. These brands are favored for their reliability and lower depreciation rates.
• Car brands like BMW, Mercedes, and Land Rover are noted for their high maintenance costs, which can significantly impact the total cost of ownership. Tesla, although depreciating quickly, offers good value as a used car purchase due to its features and innovation.