Buying a new vehicle is a big decision, and one that you want to take very seriously.

When this TikToker was in that situation, he opted to buy a pre-owned Lexus with cash rather than financing something newer, and he explains why.

He starts off his video sitting inside of what looks like a nice car with leather seats, and he says, “Let me explain to you guys why I decided to buy an older cash Lexus rather than financing a newer one.”

One important point to make is that this TikToker, with the username @jrodsellscars, makes a living selling cars, so he knows a bit about the business.

He goes on to say, “Now, the original plan was to finance a 2022 or 2023 Lexus ES350, but after giving it a lot of thought, going the cash route made more sense for me.

If I would have went with the finance one I probably would have put like $5000 down and my payment would have been like $550 per month and insurance was another $250.”

Car payments can just eat up your income.

While he could afford that payment, he explains what he is going to do instead, “I’m going to take that same $800 and just keep throwing it at my house. This is going to give me the opportunity to pay off my house way faster.”

Can’t argue with that, paying your house off can really free up your income for the rest of your life, especially if you have a higher interest rate on your mortgage.

He then finishes up the video by saying, “And let’s be honest, the ES350 hasn’t changed that much.”

This is one of the smartest things he could have done.

Cars are expensive and they depreciate fast, so while necessary, every dollar you put into cars is kind of wasted.

Putting the money into your house to either pay it off or build equity, however, is a great investment.

It is good to see people making smart money decisions that will set them up for success in their life.

Watch the full video to see exactly what he said.

You can find the video here:

@jrodsellscars

I think I made a good choice 😅 #jrodsellscars #carsalesman #approved #dealership #carbuyingtips #lexus #es350

♬ original sound – Joseph Rodriguez

Most of the people in the comments agree with his choice. Check them out.

This person says it was a smart move.

Here is another Lexus ES350 driver.

This commenter also bought a Lexus for cash and is very happy.

Paying cash for cars is just smart.

If you can afford it.

If you liked that story, check out this one about a 72-year-old woman was told by her life insurance company that her policy was worthless because she’d paid for 40 years. 🙁