When most people look at an old car, they see headaches: breakdowns, repairs, and the constant fear of something going wrong. But according to Mitchell Eisenbraun, creator of The Actual Freedom of an Old Car, that perception misses the bigger picture. In reality, an old car can be one of the most powerful financial tools you’ll ever own—and a surprising gateway to personal freedom.
Instead of viewing an aging vehicle as a liability, Eisenbraun argues that it represents independence: freedom from payments, freedom from consumer pressure, and freedom from the financial traps that keep many people stressed and overextended. Drawing on insights from books like Rich Dad, Poor Dad, The Psychology of Money, and The Simple Path to Wealth, the video reframes old-car ownership as a practical, mindset-shifting choice.
Escaping the Wealth Trap of New Cars
Modern car culture tells us that a monthly car payment is simply part of adult life. Financing “something new” is seen as normal—even expected. But Eisenbraun highlights the true cost behind that belief.
The average new-car payment today sits around $600 per month. That’s more than $7,000 a year—money that disappears into interest, depreciation, insurance, and maintenance. After five years, you’ve paid roughly $35,000 for a vehicle worth a fraction of its original price. Worse yet, that money could have been invested, growing instead of draining away.
This is why financial thinkers like Robert Kiyosaki classify new vehicles as liabilities: they take money out of your pocket and never stop costing you. An older car, however, flips the equation. With no loan, no spiraling depreciation, and far lower insurance, it becomes a tool that helps you keep your income rather than hand it over to lenders or manufacturers.
Driving an older car isn’t just frugal—it’s a strategic choice to step outside a system designed to keep people buying, upgrading, and paying indefinitely.
The Power of Simplicity
Eisenbraun argues that old cars represent a kind of wealth that goes far beyond a dollar amount: the wealth of simplicity.
Older vehicles offer:
- No monthly payments draining your paycheck
- Lower insurance premiums
- Minimal electronics to fail or require dealership intervention
- Easier, cheaper repairs—often doable at local shops or in your own garage
This simplicity aligns with Morgan Housel’s message in The Psychology of Money: true financial stability comes not from acquiring more, but from needing less. An older car teaches appreciation for functionality over novelty, shifting your mindset away from constant consumption and toward lasting value.
This shift doesn’t just change the way you see your car—it changes the way you see money, possessions, and success in general.
Control: The Overlooked Ingredient of Financial Freedom
JL Collins, author of The Simple Path to Wealth, stresses the importance of avoiding debt and maintaining control over your finances. An old car embodies that philosophy.
When you don’t owe money on a vehicle:
- You control it—nothing controls you.
- Your budget doesn’t crumble if your income changes.
- You can walk away from the car at any time without taking a massive financial hit.
- You avoid expensive tech ecosystems, software subscriptions, and forced dealership maintenance.
And beyond the numbers, there’s something emotionally freeing about driving a machine that simply does what it was built to do—with no sensors second-guessing your decisions and no screens demanding your attention.
An old car brings driving back to its basics: a straightforward tool that gets you where you need to go without stress, distractions, or financial strain.
A Simpler Car, A Simpler Life
Ultimately, Eisenbraun’s message goes far deeper than car ownership. It’s about escaping the treadmill of constant upgrades and focusing instead on freedom, control, and what actually matters.
An old car is more than transportation—it’s a symbol of choosing practicality over pressure, function over status, and independence over debt.
In a world obsessed with “new,” sometimes the biggest luxury is realizing that what you already have is enough.
