JL Collins is an American author and financial educator best known for his book “The Simple Path to Wealth.” He writes in plain language to help people understand money, investing, and financial independence. Collins champions low-cost index fund investing and living below your means. So when he recently appeared on Hasan Minhaj’s show, I wasn’t surprised at his car-buying advice. However, Minhaj’s followers called his tips “out of touch” in today’s ecosystem.

Hasan Minhaj is an American comedian, writer, and actor known for his sharp political humor. He rose to fame as a correspondent on “The Daily Show” and later created and hosted “Patriot Act with Hasan Minhaj” on Netflix. Minhaj currently hosts a podcast titled “Hasan Minhaj Doesn’t Know.” It launched in July 2024 as a weekly series where he interviews high-profile guests from politics, culture, and tech.

Now, getting to his chat with JL Collins:

“Is it bad to lease?”

Minhaj asks Collins in a clip the show shared on TikTok.

“Financially, probably…no question,” Collins replies. But he asks an asterisk: “It depends on where you are in your life.”

Fair enough. After all, if you have enough money to not be bothered buying a depreciating asset like a brand-new car outright and don’t care about lease rates and mileage fees, fine. More power to you. “There are certain things that are not financially optimal,” he explains. “But, if you’re wealthy enough, it doesn’t matter.

If you’re trying to get out of debt and build your personal wealth, though, “No, I wouldn’t lease a car,” Collins asserts. “I also wouldn’t take a car payment.”

JC Collins shares his best car-buying tactic

“I’ve never had a car payment,” Collins claims. Minhaj presses him. So, Collins sums up exactly how he buys cars with cash.

“Economy [curse]box. And then you’re done.”

Again, Minhaj brings back the concept of leasing new cars. See, many folks understand that cars are really depreciating expenses, not assets. So, why doesn’t leasing and swapping every two to three years make sense, financially?

Well, to some people, it probably does, JL Collins responds. Especially those who are, in reality, actually wealthy and want a new car every few years.

But to most of us, leasing is just another shackle preventing us from escaping debt and building personal wealth, which leads to financial freedom.

Financial freedom, of course, means that our bills don’t control how we spend our precious little time on Earth.

Instead, Collins says, the best way to buy a car is to buy a super basic, cheap vehicle with cash. Then, he advises, pretend you are making a car payment…but make it to yourself. Since it’s going into a bank account, and not to a loan company, you’ll be paid the interest.

JL Collins acknowledges how difficult this is to get going

But, he says, it’s really simple: you just buy a really cheap A to B car. “And you drive a really [curse] piece of crap for five years while you’re making those ‘car payments.’”

Minhaj rubs his face, laughs, and says under his breath, “I love that.” He says he knows exactly what models Collins is referring to. We’re talking, like, an old Toyota Corolla, Toyota Camry, Honda Civic, and Honda Accord.

“And there are even more beyond that,” Collins responds.

“Hyundai Elantra?” Minhaj presents. “Yeah,” Collins replies.

They joke about Honda, Toyota, and Hyundai sponsoring the show…or heck, embracing their position as carmakers that can save Americans from crushing debt.

Well, anyway, the audience isn’t altogether buying it

The top comments on the TikTok are mostly followers inserting their respective reality checks:

“Boomers say “don’t lease or finance, just buy a car with cash” but when they were young, cars were cheap and wages went further. Today, even a basic used car can cost $15K, and most people need a car before they’ve saved that much. Their advice doesn’t fit this economy.”

“Cost of living has gone up 3000% since grandpas days.”

“When I have spare 40k lying around I’ll get the car with no car payment. Pfff.”

“Pretty out of touch advice. The cars our parents had lasted a long time and didn’t have computers in them. Cars today are glorified iPhones; leasing is the way to go to not get stuck with impossible repair costs!”

It’s pretty clear where folks stand, here.

However, there was one comment, though, that caught my attention…

“People are too obsessed with status to follow this advice”

Hmm. Interesting…

I’m going to share my knee-jerk reaction to reading that one: Ain’t that the truth.

Look, I’ve been around cars my whole life. We’re talking a driveway filled with projects my dad towed home for a couple hundred bucks (or less) in the 90s. As a kid, of course, I was only the Professional Flashlight Holder, a role I coveted. But I eventually worked full-time at a repair shop for more than a decade. Got ASE Certified. And I ultimately helped MotorBiscuit start its first vehicle review team, where staff writers would test brand-new press cars and pour their hearts (or qualms) out on the page.

I’m a car person, through and through. But most new cars, especially SUVs and trucks (the most popular classes) are way, way too expensive. So are a lot of used cars. 

But. BUT. It’s still possible to let all your financially crushing cultural values related to cars go. Buy the cheap economy car with $1,500 you took months to save. Stop eating out to do it. Pause optional, costly travel until you’ve untangled yourself a bit. Find a way. The freedom is worth it!

Cars are supposed to serve you and your household, not the other way around. I’m a Millennial, and I’m proud to say my husband and I have never had a car payment. We bought his 2004 BMW 325i for $2,000 from a family friend. That was years ago. I’ve sold my own beloved cars (miss you, yellow Wrangler TJ) to help us move forward as we grew our family.

In any case, while some might not take JL Collins’ advice as “in touch,” maybe it will hit home with a few people and help them change their financial situation for the better. By the way, I don’t have the same “bootstrap” soapbox speech when it comes to daycare costs, though. Don’t get me started…

MotorBiscuit reached out to JL Collins via email for comment.

By the way, you can watch the whole interview on Hasan Minhaj’s YouTube channel below.