Nice video explaining finance. I recently ended up getting a bank loan for my car over finance as the Apr was much better. Always worth looking at all the options and never live beyond your means and remember nice cars mean expensive garage bills no point having a nice car you can’t fix.
I did the exact same thing. Took a loan for my second car as I needed something reliable and couldn't afford a new car upfront. It was a good idea at the time - but now I'm looking for a mortgage I'll have a little less money than expected! Best thing about this way forward is I can sell the car tomorrow and pay off the loan :)
@@benjam_uk yeah that’s the same reason I went with the loan as well easy to just sell up and pay off the loan, especially when a mortgage is on the cards
@@benjam_uk I went from a old 2005 Mini Cooper to a Audi TTS and only got it while the housing market sorts itself out again, hoping the value doesn’t drop too much now they’ve discontinued the TT.
@@RICHARD10195 nice choice mate, I just bought a Corsa black edition. Cheap to run and quick enough like. Surprisingly sounds quite decent with an exhaust on. Forgot about reliability factor as soon as I got it to be honest. I’d imagine the value should stick on them? Particularly with it being an S. I was looking at them recently but didn’t realise how much they went for. Big fan of them though, I’d love a TTRS, just like a baby R8
@@benjam_uk I’d have loved the RS but they are in another price league, I got my S at a good price through a private sale. Major service cost me a good chunk of change but it should be okay now for the next few years.
Rule 1: Don't worry about what others think of your image. It doesn't matter what you drive. If you think it defines your value or worth you need to have a serious rethink.
Or maybe you just enjoy driving cars and prefer ones that are insane? If you can afford it, do what you want and not worry about what others think in general
while i agree on a personal view, this doesnt work in the real world. how you carry yourself, act, what you drive etc are important for visual image and networking. if your in a professional job, a nice car can help secure deals or gain a level of respect and authority in discussions, decisions etc. without even needing to have said anything beforehand, purely because someone in the meeting saw you in the nice suit, with the nice watch and the nice car. from a personal level, i say it doesnt matter, drive what you like if it makes you happy, but in a professional world it plays a fairly large role in how successful you can be
@@rocky7891 Sort of but not really. Finance means you can buy a car that you would otherwise only have the money to pay for outright like two or three years later for example. All you're doing is similar to putting the money into a savings account for owning the car in a few years time except you also have the experience of using the car during that time. You do need to be able to afford all of the maintenance etc though right away
Thats how it used to be. You hustle hard for 4 years and buy your dream car cash. Nowadays youngsters want everything instantly and get bored easy. Rushing to drive the biggest car at 18 to show off.
Great topic to cover Yianni, in a world where a lot of people only about the deposit and monthlies and nothing else which is just nuts. Some PCP deals that I know some people are on are daylight robbery, where they could be in the same car paying a lot less overall using alternative financing methods if they just opened their eyes and minds and shopped around after educating themselves even a little bit!
Dealership sees through the ones that desperate to buy the car and they just sweet talk you into the deal without looking at all the figures. I had BMW dealer refuse to sell me a approved used car because I've arrange my own finance with a broker (9% apr vs 14% they offer). I end up able to buy the car after complaint to BMW and the dealership HQ directly.
This is the problem of modern society. We praise incompetence and people are arrogant enough to think of someone differently based on what they drive rather than their intellect to spot a good deal from a bad one.
I would never finance i have always been taught if i can't afford it don't buy it, and here if you pay a car dealer straight cash they generally give good discount, bought a brand new VW and got $5k off, but this video is really good😮
To be honest, I'd rather save up and buy a car than go through the hassle of financing one, because at the end of the day, you might just lose. Great Content tho
I tried to finance a car last year, but it didn't work out because I had a late payment on my phone bill twice. My wife and I decided to save up and buy a car, and now we have a new car fully paid for. At the end of the day, most people don't care about credit.
Instead of wasting your time saving and trying to build your credit, why not just contact a financial advisor here in the UK who could help you improve your finances through better options like stocks and ETFs? This way, you can allocate 10% of your earnings to buy items such as cars, and it can also help build your credit
Could you please explain further, Alan? I have never taken the step of getting a financial advisor, even though I have been advised to do so. I always perceived them as a burden.
Well, everything about money involves a decision: either to spend it or invest it. That's what I was taught by a team of financial advisors. They taught me the ethics and tricks to earn from stocks and ETFs, which generated over 480k in profits. I often find it amusing watching all these finance videos and realizing that none of them provide advice on finding a financial advisor who can help set up your future by teaching you these strategies
Wow, that’s inspiring! Do you mind connecting me with your advisor, please? I desperately need some assistance with my finances. The point you made, Alan, that really resonated with me is when you said, 'everything about money involves a decision: either to spend it or invest it
@@wingcommanderdaltonwalton67 wishful thinking. Now, people don't even know how to structure a letter these days. It's too profitable to teach them actual genuine life skills they'd use in real life such as finance literacy.
Yianni is actually a pretty great interviewer. I always liked him but he asked questions that clearly show that he understands all aspects of the subject. I’m sure the questions were prepared but the delivery doesn’t looked rehearsed at all. Good work Yianni
got a personal loan off of my bank and bought an 4.2ltr v8 audi s5 and the way its worked out, its £330 a month for it, with the insurance paid for the year. Worked out really well for me.
Its nice to have a nice car but I've always been anti finance since I saw what happens when people get in trouble with it when they lose their job. Its always good to live within your means and if I can't buy it outright and be done with it then its not for me however finance for others might be a great idea depending on their situation and preference😃
Think that still comes under the bracket of living with means, if you lose your job and cant afford your bills within a month then youre not living within means.
Consider the fact that you are using the car or asset ahead of time if you finance it vs buying cash. Assume you want a new car but it takes you 2-3 years to save for it vs a 36 or even 48 month lease. You want to keep your current, old crappy car vs buying the new one to not pay the interest rate and associated fees, but in reality anything you pay above the sticker is due to you using your new car now vs in 3 years. Maybe you say you can wait it out with no problem, great, but what happens if in year 2 you have an accident and the new car could have either allowed you to avoid it altogether or offered you much better protection against injury. If you lose a limb or have some injury that requires recuperation, I don’t think you’d regret paying the interest rate on that lease…. Also, you are right: live below your means and never overextend! Limit your total payments to 40% max of your net income, 25% or lower is ideal as you can pay in advance and avoid paying the associated interest, while also leaving enough to invest or save for rainy days. Ah, also, never go into debt without having safety nets in place! 1 year of mortgage payments in cash or a liquid, low risk account allows you to sleep like a baby. The same applies for the car lease, be prepared to pay it. If you have the money to pay the car cash, don’t! Buy some property and rent it out, pay the lease with the rent and maybe some extra out of pocket, but at the end of the lease you’ll have both the car and the property. Good luck!
@@georgealex19 I can tell you clearly know your stuff that is very good advice I especially liked the let your assets pay for your liabilities bit great explanation for how to make it work in a sensible way 👏
One thing I didn't hear mentioned was the fact that when you want to end your PCP early, you can sell your car to ANY dealership or online (WeBuyAnyCar, Motorway etc). The original dealership will always have an incentive to sting you. Always look around for companies to buy your PCP car.
this is hard people know that you are needing to sell and pay off the settlement figure and they will try to sting u aswell cause they know your desperate
Is basically shop around until you get the best deal. I've helped my parent sell their Juke last year and WeBuy quoted 6k and after their assessment they offer 2.5k, because the guy was reving my parent's juke until smoke blows out and then say their car has a problem. Of course they walked away. Later they quoted Cazoo and they quoted 6.5k and after assessment, no issue with the car and they paid straight away. Definitely don't show or tell them you desperate to sell your car.
I borrowed £35k from Rate Setter (last year) at 2.8% APR to buy my XC90 2016 T8 (420 hp). I pay £771/month so £37k total. I'm paying therefore £42/month on interest. I own the car immediately - all bills are mine. If the car is stolen - and my insurance company only give me £25k - I'm screwed. I cant get gap insurance because I bought it private. But this deal - in my view - will SH** all over the best finance deals - so I'd strongly recommend you doing your research before you take any deal. I had an S4 estate (for 2 weeks beforehand, which I sent back owing to faults) which was same deal - but COULD get gap insurance (because buying from an Audi dealer). Just sharing in case it helps anyone.
One thing to mention is when taking out a car loan rather than financing the car The bank is an unsecured loan so you have to pay the money back and the car may depreciate Whereas with car finance it is secured on the car
The other thing to put into the mix is when buying a used car APR. Dealership used car APR tend to be super high like 12-14% and broker can sometimes get you lower APR for used car. I've bought a used (nearly new BMW) recently and dealershiper APR was high for PCP but broker manage to get it low to make the deal worth while.
@@987321sam When you walk into the dealership to buy a car on finance, the dealership act as a broker and give you a finance offer. Like the video explain, dealership only have access to 1 finance company so the offer may not be good (i.e higher APR). If you able to source your own finance, you might be able to find a better deal (i.e lower APR). Broker is independent and they have access to more than 1 finance company, so they "might be" able to find you a better offer. This also means the broker might be able to find your a much lower APR on new and used car. For my example, BMW wanted 13-14% APR on a 1 years old used car on PCP, the broker manage to get 9% PCP for me on the same car. Many people don't want the hassle so they just accept whatever offer the dealership give them or the dealership knows you are desperate on buying the car, so they tend to sweet talk you into the deal.
@@987321sam Magnitude is a broker. What I don't understand is this unregulated vs regulated thing fully. Magnitude are regulated but then they're using unregulated funder to do Yiann's Urus for example?
@@Stallzyx see when it gets to this stage, this is when it confuses me I need to speakto someone in person, because even the person yawning is speaking to isn't telling the full story or comparisons. It's wild that a regulated market can use unregulated funds ???? Wtf is going on hahaha
This video is brilliant Yianni. It should be sent out to every young person just starting out with car and bike buying, or even vans, so people don't get in above their heads 👍
It's no urus but my car was 20k split 10k cash and 10k bank loan worked out great for me as they offered me a 3% loan over 4 years so the interest was minor compared to most car finance company's like at car giant I financed a 15k car but by the end of 3 years I'd paid roughly 18k because of the interest rate on it that I hadn't looked into properly
1: Buy a cheap car with cash. 2: Save up your money whilst driving the cheap car. 3: Buy your desired car for cash. 4: Whilst driving your desired car, set money aside for the next car you may want to buy in the two or three years. 5: Don't get caught up in credit unless it is for business purposes. Only do it for profit.
@yianni Thanks for the video i wanted to see. As someone new to the UK, it's been quite the process just trying to integrate into the system, starting with a base credit score and getting to improve it.
Amazing video, next time show some examples of payments on different cars, maybe like m5, lower end cars, high value cars, just a load of examples of potential payments for different type of cars
This interview was done in a training program. What they are wearing and the interest rates stated are mental image of those individual in the real world.
Buy slightly used (3-6 months with less than 1k miles) and let someone else pay for the new car premium while you get to enjoy the literally new car. My current car was owned by one of the showroom guys and hardly had any mileage on it, thing was pristine and saved a bunch and skipped the waiting time.
What wasn't explained was that yes there is an APR rate attached to a finance deal, but there is also a fixed rate attached to the finance deal and they are not both the same rate. So this should have been explained methinks. 🤔
It's good to educate on car finance but I disagree with some on here stating use finance for depreciating assets. Use it if it's out of range in cash and the monthlies are affordable and you're looking to drive a new car. I personally wouldn't finance a car again however. My new c class (which got stolen) cost around 23000 for the first 3 years of ownership through a pcp deal. Compare that to my audi s5 which I bought out right-I've probably lost all of 5k on that since purchasing 3 years ago as it was two years old and had a big chunk of the depreciation cut out of it by the time I bought it.
Yeah but that's PCP... I personally don't get it, especially on new cars right now but to be fair the numbers don't work out a ton different to HP perhaps. Thing is with your Audi S5, that comes down to that particular car being a bit more desirable and also we've been in a much better market for used car prices since like early 2020. VW Up GTIs for example, couldn't find any under 15k at the moment, even ones from 2018. Meanwhile they were 13-14k new.
Good clip I think it depends on what type of car you’re buying & if you’re going to keep the car or keep changing the cost of new cars is very expensive now & interest rates on finance has gone plus there’s not as many cars around
I’ve always bought cars with cash or credit card which payed off end month or had 12 mths 0apr I have few cars but the biggest cost seems insurance and road tax. Have 2 luxury and 2 runarounds. They have depreciated but buy 5 years and older as you lose less. Way around insurance is pay as you go as it’s better for low miles. If can afford to buy a car use cash why get into debt with those loans. If not just buy a cheap car. Live within your means.
Dealerships are more interested in selling you finance nowadays than a car. I always negotiate and buy the car using the dealership finance, which will get you a lower price. I then pay it off within 14 days or get a cheaper bank loan, and pay none of the dealership interest rate.
Halifax do PCP for a car. In fact when buying my car the dealer (bmw Sunderland) wanted 11%. Halifax offered 5.9%.l and the guaranteed future value on the car was £22,000 where as BMW said around £18,000. So do you research first
Great video but nobody mentioned that the APR changes depending on your credit score, so therefore can be different for different people, also if the finance interest rate is high because of the risk as it’s a car, why are the people that lend the money to the car finance companies not thinking the same way, they are lending to the car finance companies at a lower rate so they as a broker can make a profit. The only reason I would finance a car is if it was over the £25-£30k limit on personal loans, anything under that a personal bank loan would be far cheaper way of financing & they can’t even take your car if you don’t pay as the car is not used as collateral unlike when you take out car finance. You could have also mentioned that you are paying interest on all that Balloon payment as well as the balance until the end of the term.
Great vid but I thought the explanation of APR a little basic. The explanation seemed more like an explanation of flat rate with no mention of APR including all other charges and fees.
Another couple of terms that get bounced around are "my new Lambo" or "I've bought a new Lambo......" Chances are you haven't, you're just renting it from the finance company to look good! 😂
Flip up! Buy cars that need some elbow grease to make them presentable, sell them for a profit and flip up until you get your dream car. No finance needed if you start low enough.
US also sent the world into recession with excess borrowing and livinh beyond means. Most people couldn't afford monthly payments on homes this affected cars too. Banks in UK do 3% for excellent credit. Finance companies charge more
Yanni asked about taking a bank loan to buy the car, but this guy didn’t answer that question - he thought he was asking about borrowing to pay the deposit.
Any finance broker will know that question very well as anyone with a decent credit rating will get a better deal from a Bank than a Car Finance provider. Not in his interest to answer / Bank loans have lower credit limits and won’t be suitable for bigger purchases.
I have a ccj which is 5years and 3 months old. Being young and silly and that….. would it be possible to get finance. I don’t won’t to try get knocked back then go on my credit score as I’ve been building it up.
Financed an old 11 plate 47k miles Audi A8 with a 4l diesel engine. Why? Because I always wanted one. I can afford to pay it and keep it running. But that's about the limit I could afford. Would I love an S8 or M5? Of course. Can I afford it? Not yet. Its hard when it comes to cars, but try and don't go over what you can afford.
Don't forget, they will sting you for anything that is beyond ware and tear, that balloon payment or an insurance claim on a modified car that isn't yours yet.
So on a PCP for say a 30k car with a 15k optional balloon payment would the credit check be for the 15k you paying back b4 the balloon payment or the whole 30k for the car hope that makes sense.
Negociat the cars price down regardless of what it says as exotic cars ALWAYS have a mark-up ONLY keep the car 6-12 months max and make sure it has less than 15k miles
I like your thinking. Please explain more. So when you mean keep it for 12 months max, what do you mean? do you trade it in or sell it private? and you are 10000% right ton the less millage
I’m nearly 22, working 4 days a week and studying motor mechanics 2 days a week, I want to earn enough to be able to work for myself and not someone else and fix cars in a building that I own whilst buying multiple cars for myself. How would I achieve this goal?
You need to work get experience first. Get MOT Tester status after 2 years and look for sites you can rent and run servicing and MOT. Advertising and marketing the business will be key. Youll need to hire another mechanic to help
Rule 1. Don’t live above your means. ✨
Rule 2??????????????
@@paulkamara281 don't break rule 1
@@wounddd 🤣🤣🤣
@@wounddd 🤣🤣🤣
@@woundddexactly 😅
Nice video explaining finance. I recently ended up getting a bank loan for my car over finance as the Apr was much better. Always worth looking at all the options and never live beyond your means and remember nice cars mean expensive garage bills no point having a nice car you can’t fix.
I did the exact same thing. Took a loan for my second car as I needed something reliable and couldn't afford a new car upfront. It was a good idea at the time - but now I'm looking for a mortgage I'll have a little less money than expected! Best thing about this way forward is I can sell the car tomorrow and pay off the loan :)
@@benjam_uk yeah that’s the same reason I went with the loan as well easy to just sell up and pay off the loan, especially when a mortgage is on the cards
@@benjam_uk I went from a old 2005 Mini Cooper to a Audi TTS and only got it while the housing market sorts itself out again, hoping the value doesn’t drop too much now they’ve discontinued the TT.
@@RICHARD10195 nice choice mate, I just bought a Corsa black edition. Cheap to run and quick enough like. Surprisingly sounds quite decent with an exhaust on. Forgot about reliability factor as soon as I got it to be honest. I’d imagine the value should stick on them? Particularly with it being an S. I was looking at them recently but didn’t realise how much they went for. Big fan of them though, I’d love a TTRS, just like a baby R8
@@benjam_uk I’d have loved the RS but they are in another price league, I got my S at a good price through a private sale. Major service cost me a good chunk of change but it should be okay now for the next few years.
Rule 1: Don't worry about what others think of your image. It doesn't matter what you drive. If you think it defines your value or worth you need to have a serious rethink.
Or maybe you just enjoy driving cars and prefer ones that are insane? If you can afford it, do what you want and not worry about what others think in general
Utter nonsense, driving a sports car daily is so much more fun. Or an electric car is also awesome to drive.
@@X3Vort rubbish. It is more fun but is it affordable and sustainable?
while i agree on a personal view, this doesnt work in the real world. how you carry yourself, act, what you drive etc are important for visual image and networking. if your in a professional job, a nice car can help secure deals or gain a level of respect and authority in discussions, decisions etc. without even needing to have said anything beforehand, purely because someone in the meeting saw you in the nice suit, with the nice watch and the nice car.
from a personal level, i say it doesnt matter, drive what you like if it makes you happy, but in a professional world it plays a fairly large role in how successful you can be
Majority of people watching these are insecure immigrants of the UK and think they need to flex.
I am learning from you lads in the UK ... Here in Ghana , you pay for everything outright. No finance, pay upfront
That’s a good thing. That way you only buy the things you actually can afford!
@@rocky7891 And you're not paying any interest!
@@rocky7891 Sort of but not really. Finance means you can buy a car that you would otherwise only have the money to pay for outright like two or three years later for example. All you're doing is similar to putting the money into a savings account for owning the car in a few years time except you also have the experience of using the car during that time. You do need to be able to afford all of the maintenance etc though right away
Thats the best way
Thats how it used to be. You hustle hard for 4 years and buy your dream car cash. Nowadays youngsters want everything instantly and get bored easy. Rushing to drive the biggest car at 18 to show off.
Great topic to cover Yianni, in a world where a lot of people only about the deposit and monthlies and nothing else which is just nuts. Some PCP deals that I know some people are on are daylight robbery, where they could be in the same car paying a lot less overall using alternative financing methods if they just opened their eyes and minds and shopped around after educating themselves even a little bit!
Dealership sees through the ones that desperate to buy the car and they just sweet talk you into the deal without looking at all the figures. I had BMW dealer refuse to sell me a approved used car because I've arrange my own finance with a broker (9% apr vs 14% they offer). I end up able to buy the car after complaint to BMW and the dealership HQ directly.
@@badboy250984 shocking that is. What BMW dealership is that? They deserve to be named and shamed! Talk about being salty!
This is the problem of modern society. We praise incompetence and people are arrogant enough to think of someone differently based on what they drive rather than their intellect to spot a good deal from a bad one.
@@kwl189 I will give you a hint and you can search it yourself. Is a dealership near Newcastle region and the bmw franchise is something “Stone”.
I would never finance i have always been taught if i can't afford it don't buy it, and here if you pay a car dealer straight cash they generally give good discount, bought a brand new VW and got $5k off, but this video is really good😮
To be honest, I'd rather save up and buy a car than go through the hassle of financing one, because at the end of the day, you might just lose. Great Content tho
I tried to finance a car last year, but it didn't work out because I had a late payment on my phone bill twice. My wife and I decided to save up and buy a car, and now we have a new car fully paid for. At the end of the day, most people don't care about credit.
Instead of wasting your time saving and trying to build your credit, why not just contact a financial advisor here in the UK who could help you improve your finances through better options like stocks and ETFs? This way, you can allocate 10% of your earnings to buy items such as cars, and it can also help build your credit
Could you please explain further, Alan? I have never taken the step of getting a financial advisor, even though I have been advised to do so. I always perceived them as a burden.
Well, everything about money involves a decision: either to spend it or invest it. That's what I was taught by a team of financial advisors. They taught me the ethics and tricks to earn from stocks and ETFs, which generated over 480k in profits. I often find it amusing watching all these finance videos and realizing that none of them provide advice on finding a financial advisor who can help set up your future by teaching you these strategies
Wow, that’s inspiring! Do you mind connecting me with your advisor, please? I desperately need some assistance with my finances. The point you made, Alan, that really resonated with me is when you said, 'everything about money involves a decision: either to spend it or invest it
Great job on these types of videos this is what this generation needs to hear
Fantastic work to yiani and his team
They should be learning this stuff in school instead of being taught to wear a frock if your names David!
@@wingcommanderdaltonwalton67 wishful thinking. Now, people don't even know how to structure a letter these days. It's too profitable to teach them actual genuine life skills they'd use in real life such as finance literacy.
Yianni is actually a pretty great interviewer. I always liked him but he asked questions that clearly show that he understands all aspects of the subject. I’m sure the questions were prepared but the delivery doesn’t looked rehearsed at all. Good work Yianni
I went to my bank for a car loan. . It works out way cheaper than going to any finance company.
Depends on the price of the car you want to buy and the deposit you have.
got a personal loan off of my bank and bought an 4.2ltr v8 audi s5 and the way its worked out, its £330 a month for it, with the insurance paid for the year. Worked out really well for me.
For how much years ?? Was the car directly from Audi ?
Its nice to have a nice car but I've always been anti finance since I saw what happens when people get in trouble with it when they lose their job. Its always good to live within your means and if I can't buy it outright and be done with it then its not for me however finance for others might be a great idea depending on their situation and preference😃
Think that still comes under the bracket of living with means, if you lose your job and cant afford your bills within a month then youre not living within means.
Consider the fact that you are using the car or asset ahead of time if you finance it vs buying cash. Assume you want a new car but it takes you 2-3 years to save for it vs a 36 or even 48 month lease. You want to keep your current, old crappy car vs buying the new one to not pay the interest rate and associated fees, but in reality anything you pay above the sticker is due to you using your new car now vs in 3 years. Maybe you say you can wait it out with no problem, great, but what happens if in year 2 you have an accident and the new car could have either allowed you to avoid it altogether or offered you much better protection against injury. If you lose a limb or have some injury that requires recuperation, I don’t think you’d regret paying the interest rate on that lease…. Also, you are right: live below your means and never overextend! Limit your total payments to 40% max of your net income, 25% or lower is ideal as you can pay in advance and avoid paying the associated interest, while also leaving enough to invest or save for rainy days. Ah, also, never go into debt without having safety nets in place! 1 year of mortgage payments in cash or a liquid, low risk account allows you to sleep like a baby. The same applies for the car lease, be prepared to pay it. If you have the money to pay the car cash, don’t! Buy some property and rent it out, pay the lease with the rent and maybe some extra out of pocket, but at the end of the lease you’ll have both the car and the property. Good luck!
@@TheSoundzUK agreed always good to live within your means
@@georgealex19 I can tell you clearly know your stuff that is very good advice I especially liked the let your assets pay for your liabilities bit great explanation for how to make it work in a sensible way 👏
I agree, I currently own 5 supercars all bought cash, I would never bother with financing cars. Unfortunately, too many posers like yianni nowadays.
The infinity wall is an grate idea with the visual text 💯
Keep this type of content coming loving it 👌
One thing I didn't hear mentioned was the fact that when you want to end your PCP early, you can sell your car to ANY dealership or online (WeBuyAnyCar, Motorway etc). The original dealership will always have an incentive to sting you. Always look around for companies to buy your PCP car.
this is hard people know that you are needing to sell and pay off the settlement figure and they will try to sting u aswell cause they know your desperate
@Jiin_ But at least people know they have various options. Not every company out there are looking to sting and not every seller is desperate.
Is basically shop around until you get the best deal. I've helped my parent sell their Juke last year and WeBuy quoted 6k and after their assessment they offer 2.5k, because the guy was reving my parent's juke until smoke blows out and then say their car has a problem. Of course they walked away. Later they quoted Cazoo and they quoted 6.5k and after assessment, no issue with the car and they paid straight away. Definitely don't show or tell them you desperate to sell your car.
You frogot to include Cawow
I borrowed £35k from Rate Setter (last year) at 2.8% APR to buy my XC90 2016 T8 (420 hp). I pay £771/month so £37k total. I'm paying therefore £42/month on interest.
I own the car immediately - all bills are mine. If the car is stolen - and my insurance company only give me £25k - I'm screwed. I cant get gap insurance because I bought it private.
But this deal - in my view - will SH** all over the best finance deals - so I'd strongly recommend you doing your research before you take any deal.
I had an S4 estate (for 2 weeks beforehand, which I sent back owing to faults) which was same deal - but COULD get gap insurance (because buying from an Audi dealer).
Just sharing in case it helps anyone.
Everyone needs a friend like Jordan
absolutely amazing visuals. really nice and clean. Definitely a good shout for the white wall!
One thing to mention is when taking out a car loan rather than financing the car
The bank is an unsecured loan so you have to pay the money back and the car may depreciate
Whereas with car finance it is secured on the car
The other thing to put into the mix is when buying a used car APR. Dealership used car APR tend to be super high like 12-14% and broker can sometimes get you lower APR for used car. I've bought a used (nearly new BMW) recently and dealershiper APR was high for PCP but broker manage to get it low to make the deal worth while.
What do u mean by broker. Who would the broker be in this instance
@@987321sam When you walk into the dealership to buy a car on finance, the dealership act as a broker and give you a finance offer. Like the video explain, dealership only have access to 1 finance company so the offer may not be good (i.e higher APR). If you able to source your own finance, you might be able to find a better deal (i.e lower APR). Broker is independent and they have access to more than 1 finance company, so they "might be" able to find you a better offer. This also means the broker might be able to find your a much lower APR on new and used car. For my example, BMW wanted 13-14% APR on a 1 years old used car on PCP, the broker manage to get 9% PCP for me on the same car. Many people don't want the hassle so they just accept whatever offer the dealership give them or the dealership knows you are desperate on buying the car, so they tend to sweet talk you into the deal.
@@987321sam Magnitude is a broker. What I don't understand is this unregulated vs regulated thing fully. Magnitude are regulated but then they're using unregulated funder to do Yiann's Urus for example?
@@Stallzyx see when it gets to this stage, this is when it confuses me I need to speakto someone in person, because even the person yawning is speaking to isn't telling the full story or comparisons. It's wild that a regulated market can use unregulated funds ???? Wtf is going on hahaha
@@StallzyxAnything over £62,000 is technically classed as unregulated.
This video is brilliant Yianni.
It should be sent out to every young person just starting out with car and bike buying, or even vans, so people don't get in above their heads 👍
Nothing new for me here, but I feel like videos like this should be shown at school. Very important things to know
It's no urus but my car was 20k split 10k cash and 10k bank loan worked out great for me as they offered me a 3% loan over 4 years so the interest was minor compared to most car finance company's like at car giant I financed a 15k car but by the end of 3 years I'd paid roughly 18k because of the interest rate on it that I hadn't looked into properly
How long ago? Maybe those deals still exist now with such a substantial deposit but for me with like 10% deposit ish or even less the rate was 12.4%
Who did you go with to get a 3% loan? That’s well good
thank for the video honestly now i know what i need to do when buying a car..
Learn with Yianni... how cool is that... keep doing these good stuff bro :)
1: Buy a cheap car with cash.
2: Save up your money whilst driving the cheap car.
3: Buy your desired car for cash.
4: Whilst driving your desired car, set money aside for the next car you may want to buy in the two or three years.
5: Don't get caught up in credit unless it is for business purposes. Only do it for profit.
First to watch . I’m happy to be that one
Liking the new vids , more for olders 👌🏽
I needed this so bad thank you much. Getting a few tickets for the 1series aswell. Can't afford the urus pal running cost. 😂
Good video, honest and upfront 👍🏻
Great video for those who don't understand car finance
Great video, Yanni!! 👍🏻 Really informative and helpful to many, I'm sure!! Also nice to see you using the white/green screen 😁
@yianni Thanks for the video i wanted to see. As someone new to the UK, it's been quite the process just trying to integrate into the system, starting with a base credit score and getting to improve it.
rule no.1 dont buy a car on finance
Amazing video, next time show some examples of payments on different cars, maybe like m5, lower end cars, high value cars, just a load of examples of potential payments for different type of cars
Great content Yianni 🙌🏼
What a superb video. Nice hearing the breakdowns from a brilliant Broker 👏
I like the seatbelt imprint on Yianni's fluffy jumper. :D
Nice to see Ryan Gosling's English brother doing well
I learnt so much from this. Thanks for having Magnitude Finance come out and shoot this video. Thank you Jordan
It's really good content, Keep going forward, Live, Learn, laugh
This is exactly the video i needed to see. Great vid !
This interview was done in a training program. What they are wearing and the interest rates stated are mental image of those individual in the real world.
Good content and information sharing 👏
Buy slightly used (3-6 months with less than 1k miles) and let someone else pay for the new car premium while you get to enjoy the literally new car. My current car was owned by one of the showroom guys and hardly had any mileage on it, thing was pristine and saved a bunch and skipped the waiting time.
What wasn't explained was that yes there is an APR rate attached to a finance deal, but there is also a fixed rate attached to the finance deal and they are not both the same rate. So this should have been explained methinks. 🤔
This was awesome thanks for the info! Opened my 👀
this is brilliant if you could also do one for buying houses like you said you buy property be a massive help also
cheers
Yianni.......Are you reading this one?.......P
Some real basic stuff is Know you’re the area you want to buy in and buy at the right time. You also need luck.
Great Insights Yianni 👍.. BTW how is the workout schedule going on.. been sometime you shared progress on that..
It's good to educate on car finance but I disagree with some on here stating use finance for depreciating assets. Use it if it's out of range in cash and the monthlies are affordable and you're looking to drive a new car. I personally wouldn't finance a car again however. My new c class (which got stolen) cost around 23000 for the first 3 years of ownership through a pcp deal. Compare that to my audi s5 which I bought out right-I've probably lost all of 5k on that since purchasing 3 years ago as it was two years old and had a big chunk of the depreciation cut out of it by the time I bought it.
Yeah but that's PCP... I personally don't get it, especially on new cars right now but to be fair the numbers don't work out a ton different to HP perhaps. Thing is with your Audi S5, that comes down to that particular car being a bit more desirable and also we've been in a much better market for used car prices since like early 2020. VW Up GTIs for example, couldn't find any under 15k at the moment, even ones from 2018. Meanwhile they were 13-14k new.
Good clip I think it depends on what type of car you’re buying & if you’re going to keep the car or keep changing the cost of new cars is very expensive now & interest rates on finance has gone plus there’s not as many cars around
Great Video! At least nobody can challenge you asking whether you wear your seatbelt! #teddyfleece 😂😂😂
You could use your Debit card to Overspend to Buy a Car at the Dealership or Online it’s what you do.
Great content
It’s a very goodd video well done ❤
🙌🏼
I’ve always bought cars with cash or credit card which payed off end month or had 12 mths 0apr
I have few cars but the biggest cost seems insurance and road tax.
Have 2 luxury and 2 runarounds.
They have depreciated but buy 5 years and older as you lose less.
Way around insurance is pay as you go as it’s better for low miles.
If can afford to buy a car use cash why get into debt with those loans. If not just buy a cheap car. Live within your means.
Great content can you make a video on how to insure expensive cars
Dealerships are more interested in selling you finance nowadays than a car. I always negotiate and buy the car using the dealership finance, which will get you a lower price. I then pay it off within 14 days or get a cheaper bank loan, and pay none of the dealership interest rate.
Great video 👌🏻👌🏻
I got my new car on a 0% PCP, I pay back 20k over 4 years and there’s a 17k balloon payment at end which totals 37k the value of the car at new
Where do you find a 0% pcp
@@imikez3815 dealer had an offer on
Great video!
Need to sort the echo out on audio
Great advice
Halifax do PCP for a car. In fact when buying my car the dealer (bmw Sunderland) wanted 11%. Halifax offered 5.9%.l and the guaranteed future value on the car was £22,000 where as BMW said around £18,000.
So do you research first
Great video but nobody mentioned that the APR changes depending on your credit score, so therefore can be different for different people, also if the finance interest rate is high because of the risk as it’s a car, why are the people that lend the money to the car finance companies not thinking the same way, they are lending to the car finance companies at a lower rate so they as a broker can make a profit. The only reason I would finance a car is if it was over the £25-£30k limit on personal loans, anything under that a personal bank loan would be far cheaper way of financing & they can’t even take your car if you don’t pay as the car is not used as collateral unlike when you take out car finance.
You could have also mentioned that you are paying interest on all that Balloon payment as well as the balance until the end of the term.
Good video. I still don’t fully understand the difference between APR and interest rate? Or are they the same thing
Great vid but I thought the explanation of APR a little basic. The explanation seemed more like an explanation of flat rate with no mention of APR including all other charges and fees.
Another couple of terms that get bounced around are "my new Lambo" or "I've bought a new Lambo......" Chances are you haven't, you're just renting it from the finance company to look good! 😂
putting all your cash on cars is dumb unless its an appreciating classic car. Finance makes sense. Either that or get a 3,000 car
Flip up!
Buy cars that need some elbow grease to make them presentable, sell them for a profit and flip up until you get your dream car. No finance needed if you start low enough.
Very informative
Yann straight took the seatbelt off and jumped into this interview.
This is an important video.
Car Finance for Dummies. I definitely need it🎉
Well explained
Amazing video
Loan vs Finance. I think the question was "can you get a loan to buy a car". Not "can I get a loan to use as a deposit for the car".
Should of explained how you can sell the car at the end of a PCP if its worth more than the balloon payment.
So is the number 1, 2, 3 factor to consider is the APR right ?
Thank you.
I’m surprised to hear interest rates are 8% or higher. In USA it’s around 3 to 4% depending on credit
US car credit market is like 10 years infront of the UKs, finance for cars only really became popular due to product availability after 2010
@@jaykhan1535 wow good to know
Very much depends to be honest, there’s plenty of new cars from normal manufacturers around for low interest or even 0% when they’re doing deals
US also sent the world into recession with excess borrowing and livinh beyond means. Most people couldn't afford monthly payments on homes this affected cars too. Banks in UK do 3% for excellent credit. Finance companies charge more
Yanni asked about taking a bank loan to buy the car, but this guy didn’t answer that question - he thought he was asking about borrowing to pay the deposit.
Any finance broker will know that question very well as anyone with a decent credit rating will get a better deal from a Bank than a Car Finance provider. Not in his interest to answer / Bank loans have lower credit limits and won’t be suitable for bigger purchases.
Thank you!
more you have do deposite, do it, going 0 in deposite is a slow step into grave :D, but some of use are dealt with Eurobor
Can I sell my car myself and pay off the balloon payment if I am getting a better deal with respect to my premium??
I have a ccj which is 5years and 3 months old. Being young and silly and that….. would it be possible to get finance. I don’t won’t to try get knocked back then go on my credit score as I’ve been building it up.
Most finance applications are a soft search on your credit file so don't effect your score.
Financed an old 11 plate 47k miles Audi A8 with a 4l diesel engine. Why? Because I always wanted one. I can afford to pay it and keep it running.
But that's about the limit I could afford. Would I love an S8 or M5? Of course. Can I afford it? Not yet.
Its hard when it comes to cars, but try and don't go over what you can afford.
Don't forget, they will sting you for anything that is beyond ware and tear, that balloon payment or an insurance claim on a modified car that isn't yours yet.
So on a PCP for say a 30k car with a 15k optional balloon payment would the credit check be for the 15k you paying back b4 the balloon payment or the whole 30k for the car hope that makes sense.
Price of the car - deposit = credit amount.
Only on the amount you borrow. Which would also include the interest. So 15k + the interest amount.
@@shxvxm7207 thx👍
@@BigShotLDN thx👍
@@BigShotLDN wrong
Made a video about purchasing a vehicle and didn't mention the 600 quid 'free' autoglym
Audi Switzerland still has very low 1.4% on personal leasing.
I just got a new car and put half of it on a 0% interest credit card for 2 years
That's nice for you :D the place I got my car from in the last few months only lets you put up to like £250 on card and no more
thanks for the info, now I need that keyless hacking device
I would probably get advice from a sound accountant for advice or like someone said to me a get loan from a bank and work it that way.
Lending 10K over 1 year @ 10% Apr the interest is £520.76 not a £1000 🤦♂️ Certainly is finance for dummies..... He's thinking flat rate 😮
Can you explain that further please, I don’t understand where the £520.76 comes from?
@@Nsha611 most likely due to the loan reducing after each payment which effects the APR amount as this is based on a yearly figure.
Haha gangsta 😂
I thought they worked it out flat rate no? 10% on the purchase
If you do it id personally buying something increasing in value like a future classic or very rare spec
Negociat the cars price down regardless of what it says as exotic cars ALWAYS have a mark-up
ONLY keep the car 6-12 months max and make sure it has less than 15k miles
I like your thinking. Please explain more. So when you mean keep it for 12 months max, what do you mean? do you trade it in or sell it private? and you are 10000% right ton the less millage
Ryan Gosling?
I’m nearly 22, working 4 days a week and studying motor mechanics 2 days a week, I want to earn enough to be able to work for myself and not someone else and fix cars in a building that I own whilst buying multiple cars for myself. How would I achieve this goal?
Don't be a wanker dreamer Work fucking hard live within your means and when you have the money buy for cash
You need to work get experience first. Get MOT Tester status after 2 years and look for sites you can rent and run servicing and MOT. Advertising and marketing the business will be key. Youll need to hire another mechanic to help
Erm hang on a second, you kinda skipped over the "Premium" option, you can get 100K more for a car that's worth 250k, and how exactly does that work?
Rule nr 1, when you are over 40, your tinder dates start getting very weird trust me