I’m so glad you’re here! I’m buying me first new car all by myself lonesome and I’m was SOO worried about being ripped off. (I’m a small timid female.) Your transparency and concision here are priceless. …I WILL “fake my confidence!” 🤭
This guy killed it! I just bought a car at 22, still in college (last car was totaled), and after watching this video I feel a lot better about the money I’m paying. One thing I might add is, if you can wait, wait until the end of the year when car companies are trying to boost their sales numbers to investors. They’ll offer some crazy deals and interest rates. For example, I got a 60 mo, 0.9% APR loan after getting $4000 off MSRP from the dealer-all because they need those year-end numbers.
@@kennethlorenzgyah they let you know all the business ins and outs. Anyone who's worked in retail sales know how the business works, why tools at Lowe's come bundled with the stupid craftsman flashlight,cause investors don't see the bundles just units sold.
Usually the best thing i like to do, is 1. Research the car you want to buy, what options does it have that you like... (bluetooth, nav, reverse camera, Etc) 2. Shop around (Get preapproved before you walk into the dealer) credit has changed where you can have inquiries on your credit (multiple) within the first two weeks. It will only count as one. 3. Make sure you have at least 2 pre approvals before going to the dealer. If you want to try the dealer financing, go for it. The worst that could happen is they offer a higher interest rate, Etc. 4. Newer cars depreciate faster but they are easier to get an MSRP on and negotiate, while as used cars typically are marked up significantly (do more research when looking for used. Prices vary wildly) 5. Don't be afraid to walk away, this is the best part about having a pre approval. You can always go somewhere else, dealers will always try to get the highest they can first. Don't let them control what you are going to pay.
One thing he forgot to mention in the video is always pay more than your minimum payment whenever possible so that you can pay off the car earlier i paid my car off a year earlier doing this
So i assume you pay less.? Its different from actaully loaning money from an agency right, because one time i borrowed 500$ and i had to pay back 600$ in one year i believe but i decided to pay it back in 6 month i still had to pay the full 600$ which i thought i had to pay less since i paid it before of time lol but i guess thats how them make money
Esteban Peralta some auto loans charge you when you pay earlier, it’s called a “repayment” fee, Ford charges it on their ford credit loans. So it’s best to just pay on your due date for your payment just a larger amount if you can, so you can avoid all fees.
@@profribasmat217 you sound very professional calling someone that. Especially after claiming to be college professor. Just like you said yourself, if you do Bi-Weekly payments you make an extra payment each year. If you do that from the beginning you are directly attacking the interest of the loan and shortening the loan at the same time, so therefore you pay less interest for the entire loan. It has been proven time and time again.
I'm a finance manager at a dealership, GREAT video. A lot of people don't understand how all of this truly affects them unless they watch videos like this. ONLY correction is that in some states, warranty is non-negotiable (like in Florida). I bought mine for the same price as a customer would.
If you were a finance manager at a dealership. Could you give a little insight on a situation? I have my eyes set on a passenger truck. Honestly, it's in bad condition. Peeling paint, scratches, busted tail light, and a horrible (and illegal) tint job on all windows, including driver window. Mainstream big brand dealership wants 6k for it, and refuse to finance it, they only want full price in cash, price is non-negotiable according to them. (2001 with 201k miles)
Having a longer loan (6 years+) isn't bad if you have the right game plan. If you're just going to keep your same job for the next 3+ years, it might just be bad. In that time, you can do many thing to earn more money to pay off your loan quicker to avoid big interest.
Always, always check with your insurance before buying a car, especially if you use a broker. I get so many younger drivers come into the office to get a quote only to find out that their insurance costs more than their car payment (California) and have to either take the car back or beg their parents to help them out. And if you use a broker you may have to pay another fee to switch to a cheaper company.
One thing I have noticed is if a dealership is offering a huge discount (dealership discount not manufacture rebate) they usually offset it by add ons (extended warranty, service contract, GPS or protection pkg). Dodge dealerships in SoCal are the worst at this. Most wont sell you car unless you agree to keep the add ons. At the very least they will make you keep the GPS/alarm at $1000.
Hope you enjoyed the video. Give it a thumbs up if you feel the desire :) And here's a link to my preferred auto lender, Lightstream loans if you have any interest. Thanks. bit.ly/auto_loans_ls
You had a high interest rate due to two factors when you were 20. No credit or bad credit. The Finance Manager does not make a killing on an interest rate of 20%, the banks do. Your interest rate is based on credit profile.
I fully own my 2008 Lexus IS 250. She’s 13 years old now but rock solid. I want a new Lexus but they’re like $40k and why would I finance when my current car still looks timeless? Lexus , some of their cars last the test of time and remain stylish years later. Good advice in this video. I sent a link to my friend who’s looking for a car now.
You’re stating cold hard facts. Spending a lot of money on a car may not be wise. Do you have 6 months income in savings? Do you need to clean up your credit? Preach it brother!
The most important thing I forgot to say & here it is. If after you make that amazing car purchase you’re left without a pot to piss in nor a window to throw it out then you should seriously rethink your entire life.
Not really. If you know your credit score you can shop around for rates at banks/CU's. Banks are a service. Their service is to loan money with interest... Focus on what you can afford and keep that to yourself. What you talk about with dealers is how much the final price should be.
Came across your video I’m trying to finance a car & thank you for explaining to me you’re a life saver so thankful for your detailed help simple to understand.💯
Thank you for this. Walked into a dealership. I am what is deemed a "new borrower". $5,680 car after taxes fees and $1,800 down. 2014 car. These joker's gave me a 22% interest rate, $221 for 57 months. 12,680 total payments. They saw the back of my head so fast.
wow , Yea those dealers are total scammers. I bet you they slapped in other fake fees like extended warranty too. Warranty doesn't work on a car that's already broken.
Hey im experiencing this right now if you accidentally got a pre approval for a loan term of 72 months dont be frustrated. As long as u get the promisary note after the exchange and tell the bank u want to change the loan term to 60 months or even lower you should be ok
I got a 20,000 loan for 6 years at 17.5%. Biggest mistake financially I've ever made and made me broke for a while but ended up paying it off in 4 years. I went through business school and would cringe thinking about the deal I signed before.
My first car I paid in full and gave to my sister as a gift at 17. I’m trying to buy another for me at 19 but I don’t know where to begin with loans. I never took one out. I’m hoping to buy a used car for school and work for $5,000. I plan on putting $2,500 down and barrow whatever is left I need to pay as the loan. I have a good credit score and heard car loans can make your credit score go up if you pay on time every month. It was drilled into my brain to never get loans for school or wants. I consider myself to be pretty good and finance and know how things work for Roth IRA, CDs, mutual funds, index funds etc. But loans I never took time to learn because again, I was told to stay away. Idk I just need advice on what is considered a good car loan
Just shop your rate before going to the dealer. That means ACTUALLY applying for a real loan and get a real approval on a car you know you want, or would be likely interested in. Just because your bank says you can get a rate as low as 3.49% for 60 months doesn’t mean you will get that rate with your credit on any car in the world. So apply for the loan on the car you want and use that approval to see if the dealership can find a better rate for you. You’re welcome.
Great video! I did my research for a few weeks before buying and just purchased my car yesterday! Though I'm just seeing this video, I used these exact steps and was quite pleased with the outcome. Great price on the car, decent down payment and low interest rate. Take his advice, as this is solid!
I went yesterday and and my wife used her credit and I put the down payment. Now I have to go to the dealership tomorrow to bring money for the tag fee's. Now it's been less three day's and know I have a change of mind and would like to cancel though my wife signed. I was shown the pre-owned car but was not even offered a test drive. Tomorrow can I talk to the manager of the dealership that I've been with for six cars already and work something out. Buyers remorse. Thank you for taking the time to read this please help!.
First time buyer and lowest offer I've gotten is 16%! have a car rn but hitting the 200K miles and not looking to spend more money on it. Just gonna build my credit up some more and bigger down payment. Thanks for the video!
I was in a perpetual up-side-down status on a rusted out 94 Dakota. It was paid off, but the yearly registration fee of $80.00 cost more than what the car was worth.
Not sure how it works in other countries but currently in Germany, you can get a less than 1% inrest rate on pretty much any car loan. There a lot of comparison sites that show you different banks and companies that are willing to loan the amount.
Very very informative, as it tells my story, I've been ripped by a dealership for 7 year loan at 5% for a car which I don't like now. I'm upside down with that car but don't want to trade it in as it will make things even worse. Still more then 5 years to go for loan. I accept that i was not smart to deal with this car purchase but now i have learned a lesson. Hope all ppl looking to buy a car learn a good lesson from this video. Keep posting great stuff
Thank you, this is very helpful! I've owned one car for over 12 years and payed for it outright. But now I'm stepping into the newer vehicle arena and this is definitely the area I'm a little unclear about.
i always choose the longest to pay off car 72 months at 4.24 % but i always pay it off 2 or 3 yrs early. i just like the flexibility.... if something come up, i can just not pay the note since im months ahead on it or jus pay a partial payment
Yeah I was looking to finance 16k for vehicle and the interest rate is like 10%! That's after talking it down! Granted great credit but no history making 2500 a paycheck
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unless you are a car enthusiast who wants a car out of reach in terms of finances i feel that's the only justifiable reason to finance for a car. legit just save money on the side and soon enough you can get a beater thatll do everything you need to do. because if cars arent your interest then who cares as long as it gets you from A to B. cars depreciate mad and theres a ton of reliable old cars.
yeah eaiser said than done, if you need a car for work. and there is noone out there to help + uber everyday for like 100s.....ya no thanks. no busses either and 25 miles from home
Rule number 1: forget monthly payments and focus on total cost. Negotiate until you get the monthly payment that totals to what you can afford and initially set out to pay. Otherwise, take lone from your local credit union with a lower APR. If this can't happen, you don't afford, no deal, run away! As simple as that.
You're not likely to get interest rates that low unless it's a new car and those are all bought down from private agreements between the manufacturer and the lenders, so you're technically paying a higher interest rate anyway
LamboLJ how did u do it bro!? I just met someone who’s selling me his car for $8,500 but I only have 560 credit because I only started this year and only have $1250 saved up? Where can I get a loan that good!?
Next video needs to explain vantage score vs Fico score. Each car manufacturer that I went to shopping for an SUV had different scoring. Hyundai had the best scoring no matter what dealership I went to so I was able to lease a car versus purchase, so please explain this.
I’m 20 and this is my first time buying a car do you have a video on what steps to take first? Should I have car insurance before I get my vehicle? What are some questions I should be asking like about the car? Should I have got my first credit a while ago? I should mention I’m a female and no body in my family really knows anything about this stuff and I don’t want to get screwed. I watched your car negotiation video too. Maybe a video on what not to buy could be helpful as well. I’m definitely subscribing and seeing what else you can tech me on this! Thank you!!
I got a 6883$ loan from capital one for 11.30% for 36 months for 226$ but im gonna pay 290$ and pay my car off in 26 months and only pay 350$ in interest per year for those 2 years interest rate is kinda high but a shorter term i can control myself by paying way more than than the minimum.good thing i came to my senses and avoided another dealership that wanted me to do 23% on on a 10k car for 72 months over the course of the loan this car would of cost me 19k. The car i got was just 4 years older than the other car the dealership tried to screw me over on but the reliability is still there the car being a toyota
@@HonestFinance yeah im thinking about that im sitting at about a 670 credit score brought it up from 619 in 2 months hopefully after a few couple payments i hope my score can skyrocket past the 700s since im waiting for another loan to drop off by the end of this month since it was paid off and i was approved for another credit card so hopefully next couple of car payments my score will pass 700 i will try to refinance suggest any banks?
Can I buy a car without borrowing from the bank ? In other words finance it from the dealer directly without a third party which is the bank in this case?
Got a used 2018 mustang GT premium for 27K with 17K miles. 60months 9.9% interest. For a first time buyer I think I did pretty good. Especially with a 440 credit score. ( we all gotta start somewhere)
So what I’m confused on is, does the bank pay for the entirety of the car and I’m only paying the bank? Or they pay a set amount and I have to pay the bank and dealership?
George Hey bro I’m looking to get a $14,000 loan. I’m 19 and have 10 months of credit history with a 740 score. Any idea on which company would give me a loan with this info?
BloodyEnviouZ I work at a dealership, it really depends on the vehicle in this your case since you have no auto loan history 740 would usually qualify for sub 5% however if your on a used car you might get somewhere in the 5-10 range
Before you tell people zero percent interest from a dealer is a good deal, tell people that it typically comes with more expensive car, you won't be able to get as good of a discount as you would without zero apr
There are 3 more points that should be added to the list when buying a used car from a dealership. 1. The age of the car 2. The mileage of the car 3. The (extra) features of the car Remember, any new car you're thinking of buying could be a lemon because it hasn't proven that it's reliable as it ages.
You hit the major point at the end. CHECK THE INSURANCE RATE. Just because all the ducks are lined up for the loan doesn't mean your monthly rate for insurance won't jump up $50-$200+.
One simple rule I use when it comes down to buying a car is to not let myself get tempted by the shiny looks on a new vehicle and go for quality and classic. Which also gives me the opportunity to buy something that will only go up in value over the years.
Now what if you took out a longer duration loan but you intend on paying it as if it was the shorter term loan just so if you had a month that's something came up the minimum you would owe would still be low kind of like a safety cushion
First thing never buy a zero meter car. Secondly go directly with Toyota, Nissan or Morris Garage directly. Never asked for extra perks accepting road side assistance if cheaper than market rate.
i got a used suv 2013 lexus with 50,000 miles for 24,000 with 15% apr for 60 months and 0 down. my insurnace will be 160 a month. is this a good deal? i have 7 days to see if i like it i can return it with no problem.
@@Kevin-gq2kj 260 monthly on full coverage. I work full time and this is currently my only debt, so I'm planning to knock it out within the next 2 - 3 years.
never never agree on a 6 year loan , 4-5 year max , but pay it off faster , how much down payment you put down and how much was the total price of the car ?
Hi Jason, thanks for the advice. I recently got a car that was $27800 MSRP but the car price was $21300.00 my interest 5.29% for 63 months. I don't have a credit history yet. When should I refinance it ?
If you don't have much credit, 5.29% is really good. Congrats! Rates are about 4% right now, so I'd refinance in about six months when your score is higher. Or just wait until rates are lower than 4%.
Hey I’m new to the car thing and I’m also doing my research on everything I need to know before I get a car, my credit is a 650 I have a small credit history but I was going to put 2k down with a 18k loan from my credit union, I also have a co-signer and I believe they’re credit is 730 and they have a huge line of credit history I was wondering what type of care I would get ?
I'm 23 with a 803 credit score i drive a 06 ford escape I'm gonna drive that thing till the wheels fall off. I can't do a car loan no sir. I've had 3 credit cards and paid them on time every month and my score shot up.
Question: I have a car financed in California and now I’ve moved to Canada. I’m still keeping up with payments since I don’t want to ruin my credit but the currency exchange makes the payment hell. I’m definitely upside down. What are my options about getting out of the deal. I can get better deals here paying Canadian $$$ than my monthly money transfer to my USD account to pay my car finance
My credit score is very poor (570) and I’m broke. I graduate from college next month and hopefully find a good paying job but I need a car now to go to interviews and a part time job maybe since I live in place without public transportation. What do you recommend I do?
I am 20 years old but I only have a few months of credit history, should I try to negotiate something with my credit or should I finance under my dad even though he has bad credit?
Just finance as little as you can to build credit. Even if it’s a horrible rate, it won’t cost that much to pay off a small loan. Example: buy a car for $3,000 and put $2,500 down. Then pay if off over a few months. Don’t use your dad unless he has better credit than you. Good luck!!
I'm going to make a video on this service, but try selflender.com if you want to build credit for yourself without paying for it. They'll give you a loan and put it a safe account that accrues interest. You'll then pay it back with monthly payments and build your credit along the way. It'll take a little while to build some credit, but that's a good start. Tell your dad to do the same thing too. Cheers!!
Hey! i just subscribed im looking to get a new Honda Civic Coup its about $24,000. My current situation is i have about 12,000 in cash and my credit is 720. Due to the corona I currently make about 1200-1400 a month and my only expense is some student loans that add up to about $520 a month. My insurance quote was $73 a month. I was wondering what my options are according to a Honda dealership i have to make $4000 a month just to be approved for a loan( they did not run my credit). I really want this car though, do you have any recommendations?
That’s tough to answer because if they require $4,000 per month, then there’s not much you can do. However, I’d check w your local credit union and see what they can do
This video was very helpful. Especially at the end. Always get an insurance quote before purchasing the car. I dodged a huge bullet when I was 18, I bought a 08 Ford Mustang. When I was getting insurance I was told my monthly payment was going to be 500. Which is absolutely crazy. Luckily I was able to get insurance a bit cheaper for 220 a month.
This was a great video and it raises a question. What about using a loan from a bank or anywhere else to purchase a car from a private seller? What’s that process like?
I found a 2013 Chevy with about 70,000 miles which is much better than my 2005 with 120,000+ miles. I have enough money to buy the car with cash, but I am in college and need that for tuition. So, I am getting a loan from my credit union but I really have no idea how this works. Do they have to go check out the car and if it is decent will they then buy the car? Or do they check the car and then credit your account?
They just cut you a check for the car and you pay them back over a set amount of time. You do have to get approved though before they’ll lend you anything.
I filled out application for a $26,000 loan (how much the car costs) without accrediting the taxes, fees, etc Can you just readjust the amount you want ? Or have to make a whole new loan?
I hate how people think financing a car is “sooooo bad.” It can help your credit build up so much within the loan term. If you can afford the payments and what not, I do not see a problem whatsoever. I plan on financing a car to help build my credit quicker and because-obviously I can’t pay it in full. It’s a new car and don’t even get started with the “depreciation value.” People that buy new cars, want to reward themselves. I, personally don’t care if the value goes down. I bought it for me and plan on taking care of it for the next 20 years of my life. I can care less about the depreciation.
Im trying to get a 2022 chevy camaro ss 1LE and its going for 51,000 and my bank offered me a 45k loan apr is 5.2% for 72 months and monthly payments come out to about 730 does that sound right😫
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I’m so glad you’re here! I’m buying me first new car all by myself lonesome and I’m was SOO worried about being ripped off. (I’m a small timid female.) Your transparency and concision here are priceless. …I WILL “fake my confidence!” 🤭
This guy killed it! I just bought a car at 22, still in college (last car was totaled), and after watching this video I feel a lot better about the money I’m paying. One thing I might add is, if you can wait, wait until the end of the year when car companies are trying to boost their sales numbers to investors. They’ll offer some crazy deals and interest rates. For example, I got a 60 mo, 0.9% APR loan after getting $4000 off MSRP from the dealer-all because they need those year-end numbers.
On IG
Did they voluntarily brought that up when you’re buying ?
Shit well I hope my car lasts me till the end of the year
Wait until December??
@@kennethlorenzgyah they let you know all the business ins and outs. Anyone who's worked in retail sales know how the business works, why tools at Lowe's come bundled with the stupid craftsman flashlight,cause investors don't see the bundles just units sold.
Usually the best thing i like to do, is
1. Research the car you want to buy, what options does it have that you like... (bluetooth, nav, reverse camera, Etc)
2. Shop around (Get preapproved before you walk into the dealer) credit has changed where you can have inquiries on your credit (multiple) within the first two weeks. It will only count as one.
3. Make sure you have at least 2 pre approvals before going to the dealer. If you want to try the dealer financing, go for it. The worst that could happen is they offer a higher interest rate, Etc.
4. Newer cars depreciate faster but they are easier to get an MSRP on and negotiate, while as used cars typically are marked up significantly (do more research when looking for used. Prices vary wildly)
5. Don't be afraid to walk away, this is the best part about having a pre approval. You can always go somewhere else, dealers will always try to get the highest they can first. Don't let them control what you are going to pay.
Now this is the type of stuff I wanted to learn in high school. Not that mitochondria is the powerhouse of the cell
Some education is used for the rest of your life
One thing he forgot to mention in the video is always pay more than your minimum payment whenever possible so that you can pay off the car earlier i paid my car off a year earlier doing this
Good call. Thank you
So i assume you pay less.? Its different from actaully loaning money from an agency right, because one time i borrowed 500$ and i had to pay back 600$ in one year i believe but i decided to pay it back in 6 month i still had to pay the full 600$ which i thought i had to pay less since i paid it before of time lol but i guess thats how them make money
Esteban Peralta some auto loans charge you when you pay earlier, it’s called a “repayment” fee, Ford charges it on their ford credit loans. So it’s best to just pay on your due date for your payment just a larger amount if you can, so you can avoid all fees.
So true! That's my plan!
@@profribasmat217 you sound very professional calling someone that. Especially after claiming to be college professor. Just like you said yourself, if you do Bi-Weekly payments you make an extra payment each year. If you do that from the beginning you are directly attacking the interest of the loan and shortening the loan at the same time, so therefore you pay less interest for the entire loan. It has been proven time and time again.
I got a car loan at the dealership with the biweekly stubs I got and it was approved
I'm a finance manager at a dealership, GREAT video. A lot of people don't understand how all of this truly affects them unless they watch videos like this. ONLY correction is that in some states, warranty is non-negotiable (like in Florida). I bought mine for the same price as a customer would.
Thanks for the comment and the Florida detail . They seem to have a lot of rules
On IG
If you were a finance manager at a dealership. Could you give a little insight on a situation?
I have my eyes set on a passenger truck. Honestly, it's in bad condition. Peeling paint, scratches, busted tail light, and a horrible (and illegal) tint job on all windows, including driver window.
Mainstream big brand dealership wants 6k for it, and refuse to finance it, they only want full price in cash, price is non-negotiable according to them. (2001 with 201k miles)
Having a longer loan (6 years+) isn't bad if you have the right game plan. If you're just going to keep your same job for the next 3+ years, it might just be bad. In that time, you can do many thing to earn more money to pay off your loan quicker to avoid big interest.
Always, always check with your insurance before buying a car, especially if you use a broker. I get so many younger drivers come into the office to get a quote only to find out that their insurance costs more than their car payment (California) and have to either take the car back or beg their parents to help them out. And if you use a broker you may have to pay another fee to switch to a cheaper company.
One thing I have noticed is if a dealership is offering a huge discount (dealership discount not manufacture rebate) they usually offset it by add ons (extended warranty, service contract, GPS or protection pkg). Dodge dealerships in SoCal are the worst at this. Most wont sell you car unless you agree to keep the add ons. At the very least they will make you keep the GPS/alarm at $1000.
So very true
I just got a Toyota corolla omg I'm really happy😊 thanks for the paystub
Hope you enjoyed the video. Give it a thumbs up if you feel the desire :) And here's a link to my preferred auto lender, Lightstream loans if you have any interest. Thanks. bit.ly/auto_loans_ls
Went through buying a used car twice last month and now I want to buy cars for others since I've learned so much. Great videos, keep them coming.
Thanks :)
I’m glad I can teach others
@jamesjonathan please help me buy mine then
You had a high interest rate due to two factors when you were 20. No credit or bad credit. The Finance Manager does not make a killing on an interest rate of 20%, the banks do. Your interest rate is based on credit profile.
I fully own my 2008 Lexus IS 250. She’s 13 years old now but rock solid. I want a new Lexus but they’re like $40k and why would I finance when my current car still looks timeless? Lexus , some of their cars last the test of time and remain stylish years later. Good advice in this video. I sent a link to my friend who’s looking for a car now.
Thank for simplifying the process and saying it in plain english with little jargon.
You’re stating cold hard facts. Spending a lot of money on a car may not be wise. Do you have 6 months income in savings? Do you need to clean up your credit? Preach it brother!
The most important thing I forgot to say & here it is. If after you make that amazing car purchase you’re left without a pot to piss in nor a window to throw it out then you should seriously rethink your entire life.
You do a great job explaining and breaking down the details. Very thorough, clear, calm, organized, and sensible. Awesome video. Great content.
This is the most stressful S**T.
I don't even want to step foot into a dealership.
It’s s bit overwhelming :)
You just have to break the salesman loose before you do!! I took about 30 mins negotiating with the guy and I won lol
I had nightmares for days after going to dealership. Not worth it. Now I go thru the ads and have a mechanic check it out before any deal is made.
Not really. If you know your credit score you can shop around for rates at banks/CU's.
Banks are a service. Their service is to loan money with interest...
Focus on what you can afford and keep that to yourself. What you talk about with dealers is how much the final price should be.
Then don’t. Buying off people selling their used cars is better than buying at a dealership.
Came across your video I’m trying to finance a car & thank you for explaining to me you’re a life saver so thankful for your detailed help simple to understand.💯
You're welcome, glad it helped.
Thank you for this. Walked into a dealership. I am what is deemed a "new borrower". $5,680 car after taxes fees and $1,800 down. 2014 car. These joker's gave me a 22% interest rate, $221 for 57 months. 12,680 total payments. They saw the back of my head so fast.
Wow! On that cheap of a car, that’s insane
Im shocked a dealership would even offer financing on a car so cheap. Its the way she goes
wow , Yea those dealers are total scammers. I bet you they slapped in other fake fees like extended warranty too. Warranty doesn't work on a car that's already broken.
Hey im experiencing this right now if you accidentally got a pre approval for a loan term of 72 months dont be frustrated. As long as u get the promisary note after the exchange and tell the bank u want to change the loan term to 60 months or even lower you should be ok
I got a 20,000 loan for 6 years at 17.5%. Biggest mistake financially I've ever made and made me broke for a while but ended up paying it off in 4 years. I went through business school and would cringe thinking about the deal I signed before.
Ya that’s a bad loan. You live and learn
How was it a bad loan ?
That’s a terrible interest rate
@@Grim_reapercy 17.5% bro... he might aswell have bent over and let the car dealer stick a strap on up his hoo ha
My first car I paid in full and gave to my sister as a gift at 17. I’m trying to buy another for me at 19 but I don’t know where to begin with loans. I never took one out. I’m hoping to buy a used car for school and work for $5,000. I plan on putting $2,500 down and barrow whatever is left I need to pay as the loan. I have a good credit score and heard car loans can make your credit score go up if you pay on time every month. It was drilled into my brain to never get loans for school or wants. I consider myself to be pretty good and finance and know how things work for Roth IRA, CDs, mutual funds, index funds etc. But loans I never took time to learn because again, I was told to stay away. Idk I just need advice on what is considered a good car loan
$2,500 car loan is plenty safe if the car works fine. Just pay it off quickly because rates aren’t the best right now
Hard to shop interest rates without getting multiple hard credit pulls. How do you get around that to shop around?????
Just shop your rate before going to the dealer. That means ACTUALLY applying for a real loan and get a real approval on a car you know you want, or would be likely interested in. Just because your bank says you can get a rate as low as 3.49% for 60 months doesn’t mean you will get that rate with your credit on any car in the world. So apply for the loan on the car you want and use that approval to see if the dealership can find a better rate for you. You’re welcome.
This assumes you can’t pay cash which is the best way to buy a car.
Great video! I did my research for a few weeks before buying and just purchased my car yesterday! Though I'm just seeing this video, I used these exact steps and was quite pleased with the outcome. Great price on the car, decent down payment and low interest rate. Take his advice, as this is solid!
On IG
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They're highly recommendable I got biweekly stubs from Cyber Credible
As a first time car buyeer i appreciate this video
Here’s a link to my Car Buying Playlist if you wanna watch more :) ruclips.net/p/PLOmIpJDqCR-L6xTFH83iG-hGK9aDpy17r
I went yesterday and and my wife used her credit and I put the down payment. Now I have to go to the dealership tomorrow to bring money for the tag fee's. Now it's been less three day's and know I have a change of mind and would like to cancel though my wife signed. I was shown the pre-owned car but was not even offered a test drive. Tomorrow can I talk to the manager of the dealership that I've been with for six cars already and work something out. Buyers remorse. Thank you for taking the time to read this please help!.
I’m pretty sure you can cancel everything (esp if you haven’t taken the car home). Just be firm if you don’t feel it’s a good fit
First time buyer and lowest offer I've gotten is 16%! have a car rn but hitting the 200K miles and not looking to spend more money on it. Just gonna build my credit up some more and bigger down payment. Thanks for the video!
You’re welcome. Check your credit unions and you’ll find someone w a better rate
I was in a perpetual up-side-down status on a rusted out 94 Dakota. It was paid off, but the yearly registration fee of $80.00 cost more than what the car was worth.
This dude is like a solid big brother hooking you up with great advice. Many thanks
You’re welcome!
Not sure how it works in other countries but currently in Germany, you can get a less than 1% inrest rate on pretty much any car loan. There a lot of comparison sites that show you different banks and companies that are willing to loan the amount.
Very very informative, as it tells my story, I've been ripped by a dealership for 7 year loan at 5% for a car which I don't like now. I'm upside down with that car but don't want to trade it in as it will make things even worse. Still more then 5 years to go for loan.
I accept that i was not smart to deal with this car purchase but now i have learned a lesson.
Hope all ppl looking to buy a car learn a good lesson from this video.
Keep posting great stuff
Sorry you got ripped off. I did too and it’s just part of buying cars until you look into how it all works.
Check out my new used car video when you have about ten min. It covers everything ruclips.net/video/xvtVSGpKdto/видео.html
Thanks man I'm 20 years old and I had an idea how car loans worked. Your video really tied up all the questions I had up. Thank you for the video
You’re welcome. Glad it helped ;)
Thank you, this is very helpful! I've owned one car for over 12 years and payed for it outright. But now I'm stepping into the newer vehicle arena and this is definitely the area I'm a little unclear about.
i always choose the longest to pay off car 72 months at 4.24 % but i always pay it off 2 or 3 yrs early. i just like the flexibility.... if something come up, i can just not pay the note since im months ahead on it or jus pay a partial payment
Yeah I was looking to finance 16k for vehicle and the interest rate is like 10%! That's after talking it down! Granted great credit but no history making 2500 a paycheck
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Thank you for all of this info. I really don't want to get screwed over.
You won’t if you’re prepared
unless you are a car enthusiast who wants a car out of reach in terms of finances i feel that's the only justifiable reason to finance for a car. legit just save money on the side and soon enough you can get a beater thatll do everything you need to do. because if cars arent your interest then who cares as long as it gets you from A to B. cars depreciate mad and theres a ton of reliable old cars.
yeah eaiser said than done, if you need a car for work. and there is noone out there to help + uber everyday for like 100s.....ya no thanks. no busses either and 25 miles from home
I was 21 with a 29% interest rate. It took almost a decade to start building back up.
Rule number 1: forget monthly payments and focus on total cost. Negotiate until you get the monthly payment that totals to what you can afford and initially set out to pay. Otherwise, take lone from your local credit union with a lower APR. If this can't happen, you don't afford, no deal, run away! As simple as that.
Yes but everytime you run away you get hit on your credit.
It goes back up ;)
best advise i have gotten in a looong time,bless you.
Hey thanks!!
You're not likely to get interest rates that low unless it's a new car and those are all bought down from private agreements between the manufacturer and the lenders, so you're technically paying a higher interest rate anyway
One thing to mention is that depreciation rates vary wildly. Corolla first year depreciation is about 7%, Lincoln about 30%
I got a car loan 3.39 interest 48 months $8600 loan on a 2012 Toyota RAV4 limited
Very good rate :)
LamboLJ how did u do it bro!? I just met someone who’s selling me his car for $8,500 but I only have 560 credit because I only started this year and only have $1250 saved up? Where can I get a loan that good!?
SVG B credit score in the 700s, be pre approved by a credit union and have the dealership compete with the credit union numbers
Try 4% on 38,800 on 72 months. 2019 challenger scatpack ...with a 90 extension day till first payment due date. And full coverage at 120$ a month
Do you have to get a car loan? Why can’t I just pay monthly but with money I’ve earned?
Wow! This guy is great. Super useful advice and down-to-Earth explanation
Next video needs to explain vantage score vs Fico score. Each car manufacturer that I went to shopping for an SUV had different scoring. Hyundai had the best scoring no matter what dealership I went to so I was able to lease a car versus purchase, so please explain this.
"It takes a big man to admit his mistakes, and I'm that big man."
- Michael G. Scott
I’m 20 and this is my first time buying a car do you have a video on what steps to take first? Should I have car insurance before I get my vehicle? What are some questions I should be asking like about the car? Should I have got my first credit a while ago? I should mention I’m a female and no body in my family really knows anything about this stuff and I don’t want to get screwed. I watched your car negotiation video too. Maybe a video on what not to buy could be helpful as well. I’m definitely subscribing and seeing what else you can tech me on this! Thank you!!
wish i could learn this stuff in high school instead of useless math formulas🤠
I feel ya
This is the shit they need to teach you in school instead of all that shit crap that I can't remember.
They do teach it, just go to college
Is not smart to teach this type of things in school, Government would hate snd be mad if they teach people
Use the math formulas that they taught you🤡 I used to think that way until I really started looking into it.
I got a 6883$ loan from capital one for 11.30% for 36 months for 226$ but im gonna pay 290$ and pay my car off in 26 months and only pay 350$ in interest per year for those 2 years interest rate is kinda high but a shorter term i can control myself by paying way more than than the minimum.good thing i came to my senses and avoided another dealership that wanted me to do 23% on on a 10k car for 72 months over the course of the loan this car would of cost me 19k. The car i got was just 4 years older than the other car the dealership tried to screw me over on but the reliability is still there the car being a toyota
I love what you’re doing. Great idea!!
Just keep in mind that if your credit is good you can always refinance :)
@@HonestFinance yeah im thinking about that im sitting at about a 670 credit score brought it up from 619 in 2 months hopefully after a few couple payments i hope my score can skyrocket past the 700s since im waiting for another loan to drop off by the end of this month since it was paid off and i was approved for another credit card so hopefully next couple of car payments my score will pass 700 i will try to refinance suggest any banks?
Thank you for this, it’s scary and complicated but I appreciate the help
You’re welcome. Glad I could help :)
Can I buy a car without borrowing from the bank ?
In other words finance it from the dealer directly without a third party which is the bank in this case?
Some will do financing and some car manufactures do too
26 years old with a 415 credit score. It sucks , but I’m not ashamed. Planning on getting a car loan from my credit union
For sure go w your credit union
Got a used 2018 mustang GT premium for 27K with 17K miles. 60months 9.9% interest. For a first time buyer I think I did pretty good. Especially with a 440 credit score.
( we all gotta start somewhere)
Which credit union?
It really doesn’t matter. They usually all compete w each other and have the same rates. Just go with the credit union that you like the most
So what I’m confused on is, does the bank pay for the entirety of the car and I’m only paying the bank? Or they pay a set amount and I have to pay the bank and dealership?
I was 18 years old when I financed my first car with 4 months of credit history and a 630 score. Car was $9,200 at 14% interest.
We all start somewhere
George Hey bro I’m looking to get a $14,000 loan. I’m 19 and have 10 months of credit history with a 740 score. Any idea on which company would give me a loan with this info?
BloodyEnviouZ I work at a dealership, it really depends on the vehicle in this your case since you have no auto loan history 740 would usually qualify for sub 5% however if your on a used car you might get somewhere in the 5-10 range
Before you tell people zero percent interest from a dealer is a good deal, tell people that it typically comes with more expensive car, you won't be able to get as good of a discount as you would without zero apr
Good point thanks
There are 3 more points that should be added to the list when buying a used car from a dealership.
1. The age of the car
2. The mileage of the car
3. The (extra) features of the car
Remember, any new car you're thinking of buying could be a lemon because it hasn't proven that it's reliable as it ages.
Thank you
Iraj Matthee Another good way of finding out if a new car is a lemom is looking for GM, Fiat, BMW, MB, Land Rover, Audi or Peugeot emblem
That’s why I’m getting a Honda. Can’t go wrong with a Honda or a Toyota.
You hit the major point at the end. CHECK THE INSURANCE RATE. Just because all the ducks are lined up for the loan doesn't mean your monthly rate for insurance won't jump up $50-$200+.
Ya. It can really throw you off at the end if you’re not careful
One simple rule I use when it comes down to buying a car is to not let myself get tempted by the shiny looks on a new vehicle and go for quality and classic. Which also gives me the opportunity to buy something that will only go up in value over the years.
Good call ;)
Now what if you took out a longer duration loan but you intend on paying it as if it was the shorter term loan just so if you had a month that's something came up the minimum you would owe would still be low kind of like a safety cushion
I’m okay with it. I’ve done it before to be safe with the obligated payment
Honestly, I will hire you to go with me to buy the car. You can start a whole new kind of business with this knowledge! Tk for your videos :)
So true!
I'm liking because when he said to like the video the thumbs lit up, thought that was cool
I wonder if we can pay extra just to principal like a home loan, any thoughts?
Yes you can and it’ll help you save a lot in interest
Sweet, thank you very much for the information
First thing never buy a zero meter car. Secondly go directly with Toyota, Nissan or Morris Garage directly. Never asked for extra perks accepting road side assistance if cheaper than market rate.
3-5%
What the heck? In Australia interest rates (for car loans) START at around 6%.
That’s no good.
i got a used suv 2013 lexus with 50,000 miles for 24,000 with 15% apr for 60 months and 0 down. my insurnace will be 160 a month. is this a good deal? i have 7 days to see if i like it i can return it with no problem.
The price doesn’t sound too bad, but 15% apr is terrible. I’d at least check rates w your local credit union
Im 19 got my first car loan on a 2015 toyota avalon paying 4% interest for 6 years monthly payment of 290
How much is your monthly insurance bill
@@Kevin-gq2kj 260 monthly on full coverage. I work full time and this is currently my only debt, so I'm planning to knock it out within the next 2 - 3 years.
How are things going now
Sasu Kev better than ever lol i thought i was going to be struggling but I’m honestly doing very well. thanks for asking.
never never agree on a 6 year loan , 4-5 year max , but pay it off faster , how much down payment you put down and how much was the total price of the car ?
But if you take a longer loan and pay more monthly wont you pay it off faster ?
Yes you will
Hi Jason, thanks for the advice. I recently got a car that was $27800 MSRP but the car price was $21300.00 my interest 5.29% for 63 months. I don't have a credit history yet. When should I refinance it ?
If you don't have much credit, 5.29% is really good. Congrats! Rates are about 4% right now, so I'd refinance in about six months when your score is higher. Or just wait until rates are lower than 4%.
That's already pretty good lol
Hey I’m new to the car thing and I’m also doing my research on everything I need to know before I get a car, my credit is a 650 I have a small credit history but I was going to put 2k down with a 18k loan from my credit union, I also have a co-signer and I believe they’re credit is 730 and they have a huge line of credit history I was wondering what type of care I would get ?
I'm 23 with a 803 credit score i drive a 06 ford escape I'm gonna drive that thing till the wheels fall off. I can't do a car loan no sir. I've had 3 credit cards and paid them on time every month and my score shot up.
@Connor Evans exactly my dad thought me about managing my credit and being responsible at a young age
Howard how long it took you guys to build your credits that high?
Cant think of a name he’s lying lol
@Connor Evans so you didn't really create your own credit but daddy did it for you....well it is not the same.
@Connor Evans yeah you speak from an arrogant entitled heart...you are the definition of a fool
Question: I have a car financed in California and now I’ve moved to Canada. I’m still keeping up with payments since I don’t want to ruin my credit but the currency exchange makes the payment hell. I’m definitely upside down. What are my options about getting out of the deal. I can get better deals here paying Canadian $$$ than my monthly money transfer to my USD account to pay my car finance
My credit score is very poor (570) and I’m broke. I graduate from college next month and hopefully find a good paying job but I need a car now to go to interviews and a part time job maybe since I live in place without public transportation. What do you recommend I do?
Is there anyone that can drive you around until you get a job?
Honest Finance my friend is driving me around right now but he'll move away after graduation on May 11 😔
Just finance a cheap car and pay for it w a part time job until you get a good one
Please correct me if I'm wrong but dealerships don't have to tell you if they get a cut of the interest rate in my
You are correct. Compare the rate to your local credit union and you’ll be able to see for yourself
Why not just go to your own bank, ask for an auto loan? Now You know what price to look for ?
I’m planning on buying a 2013 Honda Accord lx and the price is $14,933 with cash or card without credit or loan
Hey thanks so much Jason ! I wish we learned all this in high school ! It would have been nice but ty sm !
You’re welcome!! It would’ve helped me too :)
A video that is right on spot. Thank u. U got new subscriber.
I am 20 years old but I only have a few months of credit history, should I try to negotiate something with my credit or should I finance under my dad even though he has bad credit?
Just finance as little as you can to build credit. Even if it’s a horrible rate, it won’t cost that much to pay off a small loan. Example: buy a car for $3,000 and put $2,500 down. Then pay if off over a few months. Don’t use your dad unless he has better credit than you. Good luck!!
I'm going to make a video on this service, but try selflender.com if you want to build credit for yourself without paying for it. They'll give you a loan and put it a safe account that accrues interest. You'll then pay it back with monthly payments and build your credit along the way. It'll take a little while to build some credit, but that's a good start. Tell your dad to do the same thing too. Cheers!!
Great video!
Hey thanks! I hope it helped where it was needed
Is a 3-4 years credit history in the mid 700s good enough to be approved solo or should I get a co signer?
It all depends on the lender. I’d go to your local credit union and ask them about your situation. They’ll probably have some sound advice
What should I do if I have crappy credit and the best interest rate I can get is 15%?
I’d shop around more banks, get a co-signer, refinance as soon as possible or just save up in full . That’s what I’d do
I went though my bank at 4% interest. Negotiated with the sales manager as if I would finance though them. Saved $6,000
Great job!!
what bank do you have??
Hey! i just subscribed im looking to get a new Honda Civic Coup its about $24,000. My current situation is i have about 12,000 in cash and my credit is 720. Due to the corona I currently make about 1200-1400 a month and my only expense is some student loans that add up to about $520 a month. My insurance quote was $73 a month. I was wondering what my options are according to a Honda dealership i have to make $4000 a month just to be approved for a loan( they did not run my credit). I really want this car though, do you have any recommendations?
That’s tough to answer because if they require $4,000 per month, then there’s not much you can do. However, I’d check w your local credit union and see what they can do
This video was very helpful. Especially at the end. Always get an insurance quote before purchasing the car. I dodged a huge bullet when I was 18, I bought a 08 Ford Mustang. When I was getting insurance I was told my monthly payment was going to be 500. Which is absolutely crazy. Luckily I was able to get insurance a bit cheaper for 220 a month.
That’s so true
I have good credit but my interest rate on my auto loan is 9%. What can I do to fix that?
Go to your local credit union and see if they can help you refinance
3-5%, man I would kill to see that these days. 7% is currently the best you can get
I feel ya
This was a great video and it raises a question. What about using a loan from a bank or anywhere else to purchase a car from a private seller? What’s that process like?
You just get pre-approved
I need a video about counter offers and how to approach a dealership after receiving a counter offer from a bank.
Good call. Did you watch my car buying negotiation video yet? That might help with something
I found a 2013 Chevy with about 70,000 miles which is much better than my 2005 with 120,000+ miles. I have enough money to buy the car with cash, but I am in college and need that for tuition. So, I am getting a loan from my credit union but I really have no idea how this works. Do they have to go check out the car and if it is decent will they then buy the car? Or do they check the car and then credit your account?
They just cut you a check for the car and you pay them back over a set amount of time. You do have to get approved though before they’ll lend you anything.
I filled out application for a $26,000 loan (how much the car costs) without accrediting the taxes, fees, etc
Can you just readjust the amount you want ? Or have to make a whole new loan?
You can typically readjust . It’s common to have fluctuating numbers
How do u caculate the money owed from interest rate on top on initial loan? Thats where iam lost at
I hate how people think financing a car is “sooooo bad.” It can help your credit build up so much within the loan term. If you can afford the payments and what not, I do not see a problem whatsoever. I plan on financing a car to help build my credit quicker and because-obviously I can’t pay it in full. It’s a new car and don’t even get started with the “depreciation value.” People that buy new cars, want to reward themselves. I, personally don’t care if the value goes down. I bought it for me and plan on taking care of it for the next 20 years of my life. I can care less about the depreciation.
Just make sure you get a good rate and length and you’ll be fine
Jrr looooooool you’re fucked in this country with this mindset.
Im trying to get a 2022 chevy camaro ss 1LE and its going for 51,000 and my bank offered me a 45k loan apr is 5.2% for 72 months and monthly payments come out to about 730 does that sound right😫
Ya that sounds right, but check rates at your local credit union too
Thats great BUT i have paid my house off and paid cash for everything lthe last 12 yrs. i litterally have no debt and have low credit.
That’s incredible. Congrats!
Dale Farmer that’s great but very unrealistic for the average person
Niiice!
Honestly man thank you for the information 🙏
You’re very welcome