Dave. Great advice. One extra point you didn’t mention. If you buy new and drive a car for 10+ years, it can make sense to take a longer 0% interest note when the manufacturers offer it. If you must be upside down, don’t forget GAP insurance. Even if you intend to keep the car forever, this protects you if you total the vehicle and is often only an extra $5/month or so. Everyone just needs to remember a car is not a house. It is a depreciating asset and you need to live within your means. Keep up the great content!
Here's some good advice, only finance from a credit union( unless a car manufacturer is offering a better deal) and get preapproved from them and them only. Otherwise a dealer will give you a higher interest rate.
Never ever buy a car on payments alone. Chances are you would lose 20% value of your car in your first year alone; so if you plan to keep your car longer than 3 years, make sure to save more than 20% for down payment and pay car loan off quicker.
I put 2500 ona down payment but hadda more for stuff inda car 😂😂im broke broke rn (not really tho cuz i got emergency bank acc with bread in it jus incase i hit rock bottom) but i get paid weekly n trippled the monthly fee so im good 👍😂 i got my licenese 3 weeks ago . I got my car a week ago . Im movin fast with everything 😂😂. I turn 19 in like 5 months . I signed for 38 monthly payments. Idgaf tho i live n spend like its my last day 😂😂
Yeah. We got a 0.9% loan from Kia on our Niro and put down 20%. It has been nice to never be upside down on the vehicle. And the interest rate means we are only going to pay about $500 in interest over the course of the loan.
In 2018 I bought a car for Uber only. Second car. My older 2009 Lexus IS 250 is fully paid. I put about 12k on a 20k car. Only had to finance 8k. Good thing about this? Never underwater on the loan, ever! I’m glad the value of the car is always going to be higher than what I owe on the loan. Thank goodness! As of now I only owe 2k on my car loan and the car value today is like 14k.
If you want to know the best deals on NEW and USED vehicles in your zip code, check out: quotes.everymandriver.com?cid=YT - It’s a free site with competitive prices - Everyman Driver Approved!
Its sad most people don't get it. Once my car got paid off I used half of the money that would have been my monthly car note to pay smaller monthly expenses in advance and the other half in savings.
i bought a 2024 tacoma trd sport up grade i traded my 2014 tacoma trd sport with 56K they gave me 14k and a 2700.00 discount. doesnt a trade in is like a down payment
I bought at 0% no money down. Once I put 4,000 down on 12,000 car. They tacked a huge interest rate on to make my total of payment total 12,000. You put 5,000 down they will tack at back on. Your down payment is just the salesman’s commission
I appreciate the feedback. If you visit quotes.everymandriver.com you can see the best deals/prices on new cars/trucks in your zip code! It’s a free search engine and it’s Everyman Driver Approved!
Is putting down $55K toward $126K for a new 2023 BMW M5C directly from BMW USA smart? They only ask for $5-10K down. Loan term is 60 months. Credit score is 720.
I had a car loan from August 2016 to February 2022 I think it was for 72 months, my first payment was August 17, 2016, and I made my last final payment February 2022.
I have a good a real question !!! Q. I was walked out to my vehicle after signing all contract agreement-- they forgot to collect my down payment!!! It’s been a year, a lawyer contacted me to pay up! Q. Should I ??? The down payment was $5000.
A down payment on a car you make payments on is illegal. It's money that you give to the lot. Nothing to do with your payments. It's illegal. 15 USC 1662b... Its robbery
i just got a Honda hr v and the price was $22,000 i completed everything already and i gave a down payment of $3,000 so it was supposed to bring it down to $19,000 but the principle balance still shows i have to pay $22,000 .. what happened? where did my $3,000 go? im having a hard time figuring this out.. does anyone have an idea? i’d appreciate the help!!
If you pay MORE for a down payment, YES you will be eligible for a lower interest rate, HOWEVER, you end up paying MORE (over the same period) for interest.
If you are saving for a car right now, that money better be in the stock market. Its like using a speed ramp in the airport vs walking along side it with no assistance. PLEASE EDUCATE YOURSELF BEFORE HAND
I lease sooo 🤔 I'll skip the down payment.. if I total after driving off the lot my down payment will be MIA.. but buying yes absolutely put something down. Great video.
Hi Dave! My question is what scenario better put more money down and pay regular payments or put just a little bit money down even $0 and pay extra payments( save on interest) thanks in advance for answering
I want to buy a $50,000 CA. My first vehicle and I was wondering for my down payment. If I were to walk in with $25,000 in cash and the other half in my checking account. Would the delarship look at me strange with all that cash?
Sweet - I appreciate the feedback. If you visit quotes.everymandriver.com you can see the best deals/prices on new cars/trucks in your zip code! It’s a free search engine. Try it.
This guy is working for a dealership for sure 😂 THIS IS HOW YOU DEAL WITH THIS. Negotiate msrp down … and don’t put money down. After you get the car and know what your payment and term is gonna be. Then you put that money down on the capital. And pay double oh payments a month so you can pay the car faster. The truth is if you have decent credit .. the down payment and trade in are just money that are going straight to dealers pocket.
Thanks a lot for the video that helps me understand a lot better, I just paid off my NISSAN back in February this year, right now I’m continuing making my payments towards my savings that way I can have a big down payment for my next vehicle when I’m ready to trade it in. You gave me some great tips on saving for a down payment when I trade it in.
As with anything, a down payment on a vehicle is a gray area. The only time a down payment on a vehicle purchase is essential is when the buyer has poor credit. For such a buyer a down payment may save considerable interest. Notwithstanding the interest, it makes no difference to the amount paid with or without a down payment. This includes being "upside down." It is all in the numbers, the math. If you buy a $25,000, put $5,000 (20 percent) down you have a loan of $20,000. If you total that vehicle immediately and the insurance pays $22,000, you actually paid $3,000 ($25,000 less $22,000). If you put zero down, you owe $25,000 on the loan and the insurance pays $22,000, you actually paid $3,000 ($25,000 less $22,000). For people with solid credit and an ability to buy a vehicle correctly, not making a down payment is often a wise choice.
It's why I have gap insurance from my insurance company 5 dollars a month they cover the entire loan and I get a 5000 dollar credit toward a new vehicle
Looking to buy my first car, but not entirely sure how it works tbh. Would a down payment go directly towards principle? Or would it be smarter to 0 down then pay the 5k towards the principle after the first payment? I don't quite understand your comment.
I considered this but then my monthly payments would be too high. The first year would be covered with the down payment yes but this only makes sense if you can afford the rest of the high monthly payments.
I’m sorry I have a question I have credit of 760 I’m 22 yrs old and I bought a 2020 Durango R/T. The original price was a little over 46,300 before taxes. We managed to get the base to 41 but after taxes just brought it up to 46,000 flat. I don’t plan to resell my car but I did get the 84 month finance with 5.14% interest. I also got the gap insurance so my payment a month is 783$ I didn’t put a down payment because to my knowledge at the time it would only drop the payment to about 20-40 less and I already have decent credit. So did I do wrong ? I hope somebody can tell me thanks 🙏
I say re-finance it to 48-60 months with 3-4% interest rate because you have a good credit score. Your monthly payment can go higher but in the end you pay less interest.
I have been doing the math on this extensively, and down payment could money down the drain! How do I reach you to outline this to you? I do not have social media, only email.
@@MrTargee I will have a video that will be posted Tues around 6PM, in detail on this, but in short, all said and done, drive it off the lot price $25,000. You put $5,000 down, loan is for $20,000. It is totaled by hail, accident or other event 6 months or a year later. Loan balance might be $19,500. Insurance (by sheer luck) cuts a check for $19,500, paying off your loan. Your $5,000 down payment money, GONE! Finance the full $25,000, but GAP Insurance for $500 or so, they pay off the difference of the Ins check, and what is owed. You STILL have your $5,000 intact.
Hmmm. I appreciate the feedback. You should try quotes.everymandriver.com for Insider Access to Dealer Pricing! Negotiate your next car deal for FREE! See the best deals/prices on NEW and USED cars/trucks in your zip code! Check it out quotes.everymandriver.com today!
You don’t buy a car unless you have the money to pay cash. The end. You never buy new unless you have a net worth of a million dollars or more. It’s a depreciating item. The end
J Silver that’s actually worse. A lease is the most expensive way to operate a vehicle. You ideally should pay cash on a used one. Average car payment in America is 540, if you invest that money into growth stock mutual funds every month you’ll be a multi millionaire by retirement. Check out Dave Ramsey he will change your life
I’m not a true expert, but it depends on the price & mileage. Plus, those Challengers kinda suck on gas, so it takes $50 for a full tank (Premium Required)
If you visit quotes.everymandriver.com you can find the best deals/prices on new cars/trucks in your zip code! It’s a free site with competitive prices from qualified dealerships in your area! - Everyman Driver Approved!
Wake up and save your money every month 🙏 Reliable £1500 car like a VW Passat TDI 2007-2010 won't let you down, Car finance means less money for you EVERY SINGLE MONTH just to impress a person at a stoplight you will never meet😂🙈🙈🙈
Dave. Great advice. One extra point you didn’t mention. If you buy new and drive a car for 10+ years, it can make sense to take a longer 0% interest note when the manufacturers offer it. If you must be upside down, don’t forget GAP insurance. Even if you intend to keep the car forever, this protects you if you total the vehicle and is often only an extra $5/month or so. Everyone just needs to remember a car is not a house. It is a depreciating asset and you need to live within your means.
Keep up the great content!
Gap insurance is a cheaper option from your car insurance company.
Here's some good advice, only finance from a credit union( unless a car manufacturer is offering a better deal) and get preapproved from them and them only. Otherwise a dealer will give you a higher interest rate.
Never ever buy a car on payments alone. Chances are you would lose 20% value of your car in your first year alone; so if you plan to keep your car longer than 3 years, make sure to save more than 20% for down payment and pay car loan off quicker.
I always deal with price to drive it off the lot. Total price determines what the payments will be......
I put 2500 ona down payment but hadda more for stuff inda car 😂😂im broke broke rn (not really tho cuz i got emergency bank acc with bread in it jus incase i hit rock bottom) but i get paid weekly n trippled the monthly fee so im good 👍😂 i got my licenese 3 weeks ago . I got my car a week ago . Im movin fast with everything 😂😂. I turn 19 in like 5 months . I signed for 38 monthly payments. Idgaf tho i live n spend like its my last day 😂😂
@@lousiano8813 YOLO !!!
@@lousiano8813 may I ask what car you purchased ? 😂 YOLO bro also congrats on your car
Thank you for getting right to the point.
Yeah. We got a 0.9% loan from Kia on our Niro and put down 20%. It has been nice to never be upside down on the vehicle. And the interest rate means we are only going to pay about $500 in interest over the course of the loan.
@Army of Gog lol. Will do. Really doesn't matter. No car isn't going to depreciate. Didn't buy a car to keep value. Bought a car to drive it around.
It’s a Kia they give those away
We just put $2500 down on a brand new car and another driver hit us and totaled it. (You dont get that money back) The system is a complete joke.
Instantly answers the question and then explains his reasoning, wow I’m stunned. Great video
In 2018 I bought a car for Uber only. Second car. My older 2009 Lexus IS 250 is fully paid. I put about 12k on a 20k car. Only had to finance 8k. Good thing about this? Never underwater on the loan, ever! I’m glad the value of the car is always going to be higher than what I owe on the loan. Thank goodness! As of now I only owe 2k on my car loan and the car value today is like 14k.
If you want to know the best deals on NEW and USED vehicles in your zip code, check out: quotes.everymandriver.com?cid=YT - It’s a free site with competitive prices - Everyman Driver Approved!
You going sell it and put that money on a new one? Probably going to drive it till it worth 2K right
I'll NEVER get myself in a car payment ever again. It's basically working to live instead of living to work
Its sad most people don't get it. Once my car got paid off I used half of the money that would have been my monthly car note to pay smaller monthly expenses in advance and the other half in savings.
@@targetegrat yup. Same. Now I have an emergency fund and about to invest in stocks. Small but something
Eh Im still getting that new truck on payments even tho I can’t afford it doesn’t matter that truck better last me 15 years+ 👌
@@anthonyr7902 well if you are a slave yes, own a business opposed to working for someone... you will make exponentially more
@@anthonyr7902 do what makes you happy!!! Don't let this other negative people bring you down ...
i bought a 2024 tacoma trd sport up grade i traded my 2014 tacoma trd sport with 56K they gave me 14k and a 2700.00 discount. doesnt a trade in is like a down payment
This is excellent information I’m surprised this video doesn’t have more views. Answered all my questions in just one video. Thank you so much!
I bought at 0% no money down. Once I put 4,000 down on 12,000 car. They tacked a huge interest rate on to make my total of payment total 12,000. You put 5,000 down they will tack at back on. Your down payment is just the salesman’s commission
I appreciate the feedback. If you visit quotes.everymandriver.com you can see the best deals/prices on new cars/trucks in your zip code! It’s a free search engine and it’s Everyman Driver Approved!
Thanks
Is putting down $55K toward $126K for a new 2023 BMW M5C directly from BMW USA smart? They only ask for $5-10K down. Loan term is 60 months. Credit score is 720.
I had a car loan from August 2016 to February 2022 I think it was for 72 months, my first payment was August 17, 2016, and I made my last final payment February 2022.
I have a good a real question !!! Q. I was walked out to my vehicle after signing all contract agreement-- they forgot to collect my down payment!!! It’s been a year, a lawyer contacted me to pay up! Q. Should I ??? The down payment was $5000.
Get yourself a lawyer. Its there screw up. You signed the papers and they gave you the keys.
This video is very informative! Wish I knew this in my early 20's!
A down payment on a car you make payments on is illegal. It's money that you give to the lot. Nothing to do with your payments. It's illegal. 15 USC 1662b... Its robbery
i just got a Honda hr v and the price was $22,000 i completed everything already and i gave a down payment of $3,000 so it was supposed to bring it down to $19,000 but the principle balance still shows i have to pay $22,000 .. what happened? where did my $3,000 go? im having a hard time figuring this out.. does anyone have an idea? i’d appreciate the help!!
You might have to look at your sales paperwork. Did you figure it out? Same thing is happening with me and I want to cry.
If you pay MORE for a down payment, YES you will be eligible for a lower interest rate, HOWEVER, you end up paying MORE (over the same period) for interest.
Can you explain your self? That doesnt make sence.
If you are saving for a car right now, that money better be in the stock market. Its like using a speed ramp in the airport vs walking along side it with no assistance. PLEASE EDUCATE YOURSELF BEFORE HAND
I lease sooo 🤔 I'll skip the down payment.. if I total after driving off the lot my down payment will be MIA.. but buying yes absolutely put something down. Great video.
I lease as well. I will never buy another vehicle.
Same applies if you are not leasing. Say you have GAP. You’re still not getting that down payment back.
What if you could put $5,000 on a new Toyota Tacoma or a Ford Maverick 2023 or 2022 is that a good down payment
Should I put down payment on new or used car, which one is better and also for long term payment which one is better the new or used car
Hi Dave! My question is what scenario better put more money down and pay regular payments or put just a little bit money down even $0 and pay extra payments( save on interest) thanks in advance for answering
Quick question, 50k dollar truck. I put 10k down. So far I hear a lot of negatives but I’m looking for more answers.. thanks and good content 👍🏿
Did you ever get it?
@@Dark3Kill3rr Yes
I want to buy a $50,000 CA. My first vehicle and I was wondering for my down payment. If I were to walk in with $25,000 in cash and the other half in my checking account. Would the delarship look at me strange with all that cash?
Sweet - I appreciate the feedback. If you visit quotes.everymandriver.com you can see the best deals/prices on new cars/trucks in your zip code! It’s a free search engine. Try it.
with the economy, today on car prices. is it best to buy the new car now or wait for next year to buy the car
This guy is working for a dealership for sure 😂 THIS IS HOW YOU DEAL WITH THIS. Negotiate msrp down … and don’t put money down. After you get the car and know what your payment and term is gonna be. Then you put that money down on the capital. And pay double oh payments a month so you can pay the car faster. The truth is if you have decent credit .. the down payment and trade in are just money that are going straight to dealers pocket.
I agree!
Thanks a lot for the video that helps me understand a lot better, I just paid off my NISSAN back in February this year, right now I’m continuing making my payments towards my savings that way I can have a big down payment for my next vehicle when I’m ready to trade it in. You gave me some great tips on saving for a down payment when I trade it in.
My car is 15 years old
Should I put 10k down for a 40,000$ car( mustang gt 2018-2021)?
Depends
Can you answer my question. I have a bout 7 grand equality should I leave it as a down payment
As with anything, a down payment on a vehicle is a gray area.
The only time a down payment on a vehicle purchase is essential is when the buyer has poor credit. For such a buyer a down payment may save considerable interest.
Notwithstanding the interest, it makes no difference to the amount paid with or without a down payment. This includes being "upside down."
It is all in the numbers, the math.
If you buy a $25,000, put $5,000 (20 percent) down you have a loan of $20,000. If you total that vehicle immediately and the insurance pays $22,000, you actually paid $3,000 ($25,000 less $22,000).
If you put zero down, you owe $25,000 on the loan and the insurance pays $22,000, you actually paid $3,000 ($25,000 less $22,000).
For people with solid credit and an ability to buy a vehicle correctly, not making a down payment is often a wise choice.
It's why I have gap insurance from my insurance company 5 dollars a month they cover the entire loan and I get a 5000 dollar credit toward a new vehicle
@@primalj_2a433 Smart, very smart. Cut out the dealer and its smarmy F&I manager and save a lot of money.
Looking to buy my first car, but not entirely sure how it works tbh. Would a down payment go directly towards principle? Or would it be smarter to 0 down then pay the 5k towards the principle after the first payment? I don't quite understand your comment.
I considered this but then my monthly payments would be too high. The first year would be covered with the down payment yes but this only makes sense if you can afford the rest of the high monthly payments.
I was going to buy the car out right but I'm doing 50% now
We sold our older nissan so we won't have to trade it in. We put 5k down so it'll be paid off in 2 years
I’m sorry I have a question I have credit of 760 I’m 22 yrs old and I bought a 2020 Durango R/T. The original price was a little over 46,300 before taxes. We managed to get the base to 41 but after taxes just brought it up to 46,000 flat. I don’t plan to resell my car but I did get the 84 month finance with 5.14% interest. I also got the gap insurance so my payment a month is 783$ I didn’t put a down payment because to my knowledge at the time it would only drop the payment to about 20-40 less and I already have decent credit. So did I do wrong ? I hope somebody can tell me thanks 🙏
You should have gotten an APR at 3-4%.
I say re-finance it to 48-60 months with 3-4% interest rate because you have a good credit score. Your monthly payment can go higher but in the end you pay less interest.
What are some legit websites to check the value on a car befor buying.
is 50% down payment too much? or recommended?
Too much of losing your saving
I have been doing the math on this extensively, and down payment could money down the drain! How do I reach you to outline this to you? I do not have social media, only email.
Can explain to me please because I just passed my test and wants to buy a car immediately. Please
@@MrTargee I will have a video that will be posted Tues around 6PM, in detail on this, but in short, all said and done, drive it off the lot price $25,000. You put $5,000 down, loan is for $20,000. It is totaled by hail, accident or other event 6 months or a year later. Loan balance might be $19,500. Insurance (by sheer luck) cuts a check for $19,500, paying off your loan. Your $5,000 down payment money, GONE! Finance the full $25,000, but GAP Insurance for $500 or so, they pay off the difference of the Ins check, and what is owed. You STILL have your $5,000 intact.
What about a deposit to hold a car ur planning on purchasing to be held is it a good idea or not
Hmmm. I appreciate the feedback. You should try quotes.everymandriver.com for Insider Access to Dealer Pricing! Negotiate your next car deal for FREE! See the best deals/prices on NEW and USED cars/trucks in your zip code! Check it out quotes.everymandriver.com today!
yes lower interest rate!...thank you!
Thank you brother 👏🏿👏🏿👏🏿👏🏿👏🏿🇺🇸
You don’t buy a car unless you have the money to pay cash. The end. You never buy new unless you have a net worth of a million dollars or more. It’s a depreciating item. The end
It's a depreciating item, that is 100% true, that is why I lease.
J Silver that’s actually worse. A lease is the most expensive way to operate a vehicle. You ideally should pay cash on a used one. Average car payment in America is 540, if you invest that money into growth stock mutual funds every month you’ll be a multi millionaire by retirement. Check out Dave Ramsey he will change your life
@@henrypacheco9048 cap 🧢
yeah because everyone has $30,000 dollars lying around to drop on a new car am I right?
@@Koghent actually there are plenty of fantastic and reliable cars for 5 grand. There is no law that says you have to buy a brand new 30k car.
Don’t do that stupid link in the description he talks about unless you wanna get put on a list that’ll get you a bunch of useless emails.
What if I want to put $20,000 down a used truck, like a 2022?
Do you get that down payment back after finish paying off the car?
I’m looking at a used 2017 or 2019 Dodge Challenger rt I have 2,700 on a down payment is that good?
I’m not a true expert, but it depends on the price & mileage. Plus, those Challengers kinda suck on gas, so it takes $50 for a full tank (Premium Required)
are challengers even reliable I'm talking about long term?
That’s fine
Should I put 20% down if zero percent financing?
Yes
its illegal to put money down on cars..
Very informative.
If you visit quotes.everymandriver.com you can find the best deals/prices on new cars/trucks in your zip code! It’s a free site with competitive prices from qualified dealerships in your area! - Everyman Driver Approved!
Time to start saving. Great video.
Awesome advise. Thanks.
WHERE DOES THAT DOWNPAYMENT GO? THE GUY YOU'RE DEALING WITH AND HIS BOSS?
In zero apr do I put money down or what?
Should I put down 27k for a used audi q7
No
Please don’t
Is 4000 a great down payment
Depends on car price. But that’s good either way.
Is 3,000 too low for a 21k preowned car?
but isent the car worth nothing as soon as you drive it off the lot
Loans are for suckers people be financial smart don’t do it but a car cash
My interest raite is 2.9
is a 10k down payment on a 30k car a good idea?
Depends
It’s up to you but I believe that’s too much
@@Guccimane0713 can i ask why?
@@nicklorigo3507 way to much, my sister put 10k on a 30k car now she’s still paying 30k+10k extra lol put 5k down. Incase the car has issues.
Not that good advice crunch the numbers
I’m trading in my Audi
What did you trade it for?
Wake up and save your money every month 🙏
Reliable £1500 car like a VW Passat TDI 2007-2010 won't let you down,
Car finance means less money for you EVERY SINGLE MONTH just to impress a person at a stoplight you will never meet😂🙈🙈🙈
Facts all Day