A Better Way To Finance Vehicles


Welcome to Cool Cars For Life!

My name is John Boyd and I’m known as The Cool Car Guy.  I’ve been helping people buy, sell, trade, lease and finance vehicles for over a dozen years.  I have clients around the country who utilize my services.  I own CoolCarGuy.com and I am licensed in Colorado to sell and finance vehicles.

Besides being licensed to sell vehicles, I am also licensed to sell life insurance.  If that seems like a strange combination, I believe that one of the best financing strategies to purchase vehicles is using a policy loan against a cash value life insurance policy.

I am licensed with several life insurance companies to maximize this strategy using very specific cash value life insurance contracts.

I setup CoolCarsForLife.com to share this unique strategy with my clients.  Life insurance offers many benefits beyond simply a death benefit.  If the policy has cash value accumulation it can be utilized as a valuable tool throughout a person’s life.

If you are like most people and you only have life insurance through your employer, there’s a good chance it’s going to disappear when you leave your job or it could be very expensive to convert to a permanent option later.  Get started now with The Cool Cars For Life strategy and start funding your own cash value life insurance plan.


Get The Title To Your Vehicle Immediately: First of all, if you are paying cash by using a policy loan to purchase your vehicle, you can get the title to your vehicle immediately.  It goes on the asset side of your financial statement rather than a liability.

No Credit Discrimination:  If you have bad credit and you have a cash value life insurance policy you can borrow against it at the same rate as a policy owner with perfect credit.  I’ve seen people pay 15% – 21% interest rates with bad credit to purchase a vehicle. This can be a great benefit for people with bad credit.

An Unstructured Policy Loan:  You can pay the loan back on your own terms and not the terms of the lender. You decide how you want to pay back the loan because your life insurance policy is the collateral for the loan.  I always recommend paying back policy loans and there are strategies a person can use, just like any other loan. You want to keep your insurance policy in force with a guaranteed death benefit, which is the primary reason for owning life insurance.  There could also be tax ramifications if you don’t pay back the loan because cash values grow tax deferred in the policy.

Obtain A Lower Net Interest Rate: If you have $100,000 in a whole life insurance policy earning a guaranteed 4% and you borrow $40,000 to purchase a vehicle at 4.6% you will still earn 4% on $60,000 or even the full $100,000 depending on the life insurance company and the terms of the insurance policy.  That’s a net 0.6% policy loan rate based on the guaranteed interest rate.

I know of an insurance company that has a policy that has averaged a non-guaranteed 5.95% rate of return tax deferred, over the past 20 years, while their current loan rate is 4.6%. They pay non-guaranteed policy dividends on the full amount of the cash value, even if a policy loan is in place.  That can be a fantastic loan strategy for purchasing a vehicle. The guaranteed rate with that company is 4%, while still having a guaranteed death benefit and access to policy loans based on the cash value build-up.  Policy dividends are a return of premium by the insurance company and are not guaranteed.

Access Quick Cash When You Need It:  Very few people will be financially disciplined enough to leverage this cash value life insurance strategy and realize its benefits.  I use it as a way to access quick cash when I need it for my business or to buy a cool vehicle and flip it for a quick profit.  It works great for me, which is why I decided to share it.

No Credit Check Or Application Required: You don’t need to fill out a credit application, obtain credit approval, or even put money down.  Borrowing money against a life insurance policy is similar to borrowing against the equity in a home, only you don’t have to qualify.

You can usually obtain a loan against a policy with a simple phone call or filling out a few forms where your equity in real estate is tied up.  You have to qualify with a lender to get a second mortgage and access the equity in a property.  Home equity loans and car loans are all based on your credit, your income and your ability to pay back the loan.  This is not the case with life insurance.  You can use your cash value as collateral for the loan. Most people are not aware of this as a strategy for financing a vehicle.

Death Benefit Pays Off The Loan: In the event a person passes away, with an outstanding loan, the loan will be paid off by the death benefit. The heirs would get the title to the vehicle with a reduction in the death benefit.

Why Everyone Doesn’t Use This Strategy:  This strategy for using cash value life insurance as collateral is a great way to purchase vehicles.  Pay off the loan and you can use it again when you need it without the need to qualify for a loan.  The masses use more traditional financing methods, which is why there are currently over $1.1 trillion in auto loans at pretty high interest rates.

The real challenge for many people is that it can take time to build up the cash value in a policy.  Borrowing against the cash value of life insurance and paying back the loan to purchase a vehicle is  just one way cash value life insurance can be utilized.


Most people focus on the purchase price of a vehicle rather than the overall structure.  Two people can walk into a dealership to get an automobile and one person walks out paying next to nothing in interest and another person walks out at 21% paying $12,464 in interest on a $20,000 vehicle.

If a person doesn’t ever clean up their credit or change their purchasing ways they are at the mercy of the banks paying high interest. They could be improving their personal  situation by taking advantage of the benefits of owning cash value life insurance as part of their personal lifestyle. I advocate this whether a person obtains life insurance from my agency or another life insurance professional. The reality is that most people are under insured and have far too much household debt.

In many cases when a person passes away their obligation on a lease or purchase may continue for the estate or a co-signer.  I am often called to help sell a vehicle or buy out a lease by people who have lost a loved one and it can be a difficult situation for them.

If an individual purchases five vehicles over a 25 year period they may end up giving away as much as $60,000 or more of their wealth just in high interest payments.  Many people tell me that they can’t afford to own cash value life insurance, but most can’t afford not to. There are certainly other ways to purchase vehicles, but cash value life insurance offers some unique advantages.

There are plenty of books on this subject including the following:


Very few people are actually taking full advantage of the benefits available with life insurance. It has been reported that the top 1% control 22% of all the cash value life insurance in force.  I recently heard about a billionaire buying $1.2 million a month in cash value life insurance.  What do these people with massive amounts of wealth know that most people don’t?

Cash value life insurance has been around for centuries.  It dates back to the late 1700’s and policy loans against life insurance have been used by many successful people, including a number of my clients.  Having access to quick money with a phone call or a few forms can be extremely beneficial.  Pay back the loan and you have your money available as collateral when you need it again.


  • There is a way to purchase vehicles unlike everyone else.
  • There is a way to create cash value using life insurance over time that can grow tax deferred that you can borrow against to purchase your vehicles without the need for a credit check.
  • There is a way to pay back a car loan on your own terms.
  • There is a way to get access to money, while still allowing your cash value to grow.
  • There is a way to receive a guaranteed interest rate on your cash value, while getting a low net interest rate on the money you borrow.
  • There is a way to pay cash for your vehicles, so you hold the title and not the bank, using a loan that won’t appear on your credit report.
  • There are financial institutions controlling billions of dollars of life insurance in their portfolios – “The Bank’s Bank”


If you want more information about how The Cool Cars For Life strategy can work for you just reach out to me using the contact form below.  There are certain parameters and requirements that need to be met to obtain a cash value life insurance policy of your own. It’s certainly worth investigating and there is no pressure to see what options are available to you.

If you want to contact me about purchasing or leasing a vehicle using one of the more traditional financing or leasing methods you can find me at CoolCarGuy.com.


John Boyd is licensed to sell cars and life insurance in the State of Colorado.  Cash value life insurance guarantees vary by insurance carrier and are based on the claims paying ability of the insurer.  Dividends paid by a mutual insurance company are not guaranteed.  Products, product features and riders vary by state.  Some issuers are not available in all states.

All material in this article and on this website is for general use with the public and is not intended to provide investment, insurance or tax advice for any individual.  By using this website for informational purposes you agree that you are responsible for doing your own investigation of the material being presented and Cool Car Guy, Inc., John Boyd, CoolCarGuy.com and Cool Cars For Life will not be held liable for sharing the opinions and/or your personal use of the information being provided here.

13,364 total views, 11 views today