These 2 Cars Build Generational Wealth, According to Personal Finance Expert Seth Godwin
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Heather Altamirano
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Daria Uhlig
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When it comes to investing in cars that go the extra mile, money expert Seth Godwin recommends only two brands that are durable enough to pass down to kids and grandkids.
“Generational wealth is built on Toyotas and Hondas,” he said during an interview with the BiggerPockets “Money” podcast.
“They last forever. Even though they’re a little bit more expensive, they last, on average, three times as long,” he noted.
He’s not wrong.
According to a 10-year iSeeCars study that looked at 260 million vehicles sold between 2012 and 2022, Toyota ranked highest overall in terms of long-lasting vehicles, and Honda came in second.
While cars are depreciating assets that don’t create generational wealth in the conventional sense, Godwin strongly believes Toyotas and Hondas are the best values for your money.
Learn more about some of the most reliable vehicles money can buy.
Low Maintenance Cost
With the cost of living surging over the last few years, many people need to find a dependable car without spending a lot on maintenance and repairs, and Godwin swears by Toyota and Honda.
“If you know how to do an oil change, you’re probably going to be okay because these things just don’t break down as much as other cars do,” he explained.
The average maintenance and repair cost for a Toyota in its first 10 years is $5,445 which is a whopping $1,724 less than the industry standard, per CarEdge. The average maintenance and repair cost for a Honda in the first 10 years is $6,684, which is $485 less than the industry standard.
Long Lifespan
Not all cars are built equally, and while many Hondas can easily make it to 200,000 if well cared for, several Honda makes land on the iSeeCars list of vehicles that have the capability of going to 250,000 and beyond.
A number of Toyotas, including the wildly popular Camry, can also stay on the road for over 250,000 miles if properly maintained.
Built To Last
What makes Hondas and Toyotas so reliable?
“Honda prides itself on its engineering prowess and technical expertise,” according to Endurance, a vehicle protection plan provider.
“Its research and development teams devote tremendous effort to understanding how each component interacts and finding ways to improve quality. By studying failure points and weaknesses, Honda can reinforce parts that are more prone to breakage.”
For Toyota, SlashGear stated that the manufacturer’s total quality management program is “built on a process of recognizing errors in manufacturing to reduce or eliminate them.”
The brand uses quality products and premium engineering, and it puts vehicles through rigorous testing, SlashGear noted.
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