People need to realise that the car business is all about selling loans...its isn't really about selling cars, the finance is where they make their money, always remember that. Just go into the car showroom and tell them you're paying cash and see the look of horror on the sales persons face.
@AlCapone-tr5lb
Жыл бұрын
I agree, that would be great, however, 95% of average people are unable to pay cash for a vehicle.
@Whizzy-jx3qe
4 ай бұрын
Very unusual to pay interest first,the interest is normally included in your payments with finance deal. Ballon payments are usually PCP.
@donperrignon
6 жыл бұрын
Pay cash for a car you can afford. Pay yourself a car payment every month and invest that money. Come back five years later and tell me what you have. People have to learn to get out of the car finance mindset.
@rufdymond
5 жыл бұрын
At last, someone who views this subject exactly as I do..
@jami7772
4 жыл бұрын
Totally agree ! Otherwise you effectively have a mortgage on a car.
@jameswright1990
4 жыл бұрын
Jamil Malek yes but at least a property is an appreciating asset (in most cases).
@androidstationboomazoid5056
4 жыл бұрын
Or if you can get good finance then do that even if you can afford the car and you can have the car and do investments
@donperrignon
4 жыл бұрын
@@androidstationboomazoid5056 If you ever have to consider finance vs invest, the buy something cheaper. The two should have no bearing on the other.
@philboytano
7 жыл бұрын
Hey its Rob Kardashian!
@tankthepitbull520
5 жыл бұрын
I looked at financing an Audi R8 spyder. The deal was £30,000 deposit, followed by 47 monthly payments of £1,300. At the end of the duration of agreement the option to purchase fee was £65,000. Although the retail price of the car £135,000. If I were to finance the car over the period 47 months I would have payed £156,100 in total for the car. Considerably more than the retail price. I decided to decline the deal because I could not afford it. It’s best to save up a lump sum and purchase a vehicle in cash.
@joelluv
5 жыл бұрын
That’s not possible. If you wanted the car you should have got PCP which means that the overall you payed plus the deposit is £91,100 meaning you have the choice to pay £45,000 to officially own the vehicle and sell it later on but would have depreciated probably to £100,000 or less meaning a loss of a minimum £35,000 bearing in mind the age of the car is 4 years old or more. But if you get it on PCP you can basically have a Audi R8 brand new for a bargain £91,100 for 4 years and return to the dealer. You can use the extra £45,000 probably to invest into things so you’ll make a profit and possibly reduce it to 70 or 80 grand for an Audi R8
@shofarsogood7504
6 жыл бұрын
This isn't a screw over it's every loan ever. Banks get their interest first.
@wiledman2430
7 жыл бұрын
He payed interest is what he's saying. Yeah that's what happens.
@taker610
7 жыл бұрын
Every loan you take out is going to be repaid interest first. Your friend wasn't ripped off he was just a little naive about finance. Save for a large down payment or just pay extra towards principle every month.
@westdccs
6 жыл бұрын
Most car loans are simple interest loans. This means the bank will front load the interest portion of the payment. If you borrow $15k at 5%, in the first year you only pay down the amount borrowed by just under $3,500. Almost $700 was given to the bank for interest over that same period, so you still owe $11.5k on the car, which may have depreciated in value to under 10k (depending on the model). Also, since dealers work with wholesale value of the car, the trade-in value of the car is going to be much less. This is why long term loans for cars can be especially bad, your payoff will never keep up with the depreciated value of the car. The only ways you can offset this is to pay a larger down payment or to pay more than your payment. Of course, the best way to purchase a car is to use cash. You take a lot of the financial power away from the dealer when you can do this -- and you own the car in full when you drive it off the lot.
@safwanpadubeb7664
6 жыл бұрын
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@safwanpadubeb7664
6 жыл бұрын
zzzzzgxdsgvfbebn33i
@vildisvildis
6 жыл бұрын
2:37 your roof is leaking?
@batman1169
5 жыл бұрын
Eagle eye! I didn't watch the whole video but the part you mentioned i did! Cheers!
@angelbluerider9588
4 жыл бұрын
your 100% right. ill never finance any car ever again. banks and finance stealing your money. i buy everything cash now. you cant afford it dont buy it.
@Carsmorevlogs
4 жыл бұрын
Injector ,at that time approx 45k miles
@moparfam300c
6 жыл бұрын
But what if I don't sell the car and keep it as long as I want?
@gstarlocc
2 жыл бұрын
I've always wanted a Mercedes e class 220 cdi, the car I want costs 6k. instead of getting a finance, I've set up a goal for my self, put 500 dollars aside every month for 12 months, and then I can buy it with cash. Never finance a car! You're not getting a car, when you apply, you apply for a loan.
@hienienguyen6766
4 жыл бұрын
man thank you for your words man! i definitely needed to hear this. i want my first car and i really want to make sure what i am getting into.
@Jarack123
8 ай бұрын
Did you get the car?
@elmo319
4 жыл бұрын
On PCP finance, there is something call ‘guaranteed future value’ so the equity should not be negative (guaranteed balloon payment). Don’t know how it works on HP but gather that’s what you’re on about?
@danbruno5945
4 жыл бұрын
Lol I think completely differently I normally just buy a nice reliable £1000 car like my recent VW Passat TDI that will proberly last me a long time. I rather have savings and see more of my payslip every month.😂💯
@stephenmurray2851
5 жыл бұрын
I thought PCP was just like renting? You pay monthly for use of the car and then at the end of the three (for example ?) years you have the option of paying the rest of the car of in one payment and keeping it or simply handing it back? Why not just hand it back and get a new car every three years then? Whats the problem?
@rikardogibola1312
5 жыл бұрын
Because you're paying hundreds of pounds every month just for the pleasure of driving the car. It's never yours. It is just a car rental scheme.
@itsmealikhan
3 жыл бұрын
Park the car & then talk.
@AppleCrider
6 жыл бұрын
YES! Buying used cars in cash! Car payments are wealth killers! -Financial Freedom For Millennials Channel Subscriber Goal 111/250
@bartekszot3361
2 жыл бұрын
What can one conclusion be drawn from this? If you don't have the money to buy a car, get financing for something cheap. For example, a car for several thousand 3-5 tousands , not for 10-15 or 35 thousand pounds 😌
@tonyparkin3379
6 жыл бұрын
You pay the amount the car depreciated. Not off the car.
@rilla1983
5 жыл бұрын
What about having a paid off vehicle as a secondary along with the financed vehicle?
@ao2761
5 жыл бұрын
if you do your calculations early based on your income and how much you'll be spending and saving per year, i don't see the problem. your friend probably didn't calculate the costs, or even check the duration of the agreement before he thought about selling the car, that's why the interest was so high. he probably even had 2 more years to go on the contract
@FatherJack-b1u
7 жыл бұрын
I know people that weren't even aware that their car is on lease and they have to pay the balance, refinance the balance or trade in after 3 year. I like to take my cars on a 5 year finance deal so after the last payment I own the car outright - yes I pay more per month that way but I am also not limited to how many miles I do which is usually 20k per year!
@madinahpaak1
6 жыл бұрын
Kevin Reay which finance company did u deal with?
@sdsd-cq9tx
2 жыл бұрын
This is number 1no if i promise to pay the demand then i do
@saidul02
5 жыл бұрын
or is it better you go with a bank loan with some interest. then car dealer gets their full money and you get your car.
@whiteweewee5961
7 жыл бұрын
did you friend do a PCP or HP?
@dabemoji2839
6 жыл бұрын
If you can’t buy it cash, you can’t afford it lol
@everything2872
6 жыл бұрын
WTF CLIPS wrong
@bronson1392
6 жыл бұрын
I like apples I like apples no he is right. You think Car finances are there for the good of the world and human race? So everyone can afford a ‘nice’ car... Lol ok
@Trihawk7
5 жыл бұрын
Does that mean people who have mortgages are the same? No. Finance is something that makes it more convenient.
@xavierpaz7534
4 жыл бұрын
Not everyone has 20k in bank saved up to buy a new car
@PT7137E
Жыл бұрын
@@xavierpaz7534 than don't buy a new car lol
@graham8055
Жыл бұрын
It's best to just save up and buy a car. No use financing.
@dawnflaviusprincesstrill4696
6 жыл бұрын
Good advice
@spanishmontana6121
2 ай бұрын
Offcourse finance will cost you more theres not charity
@TJB147
7 жыл бұрын
So basically did your friend not realise he was in negative equity when selling his car?
@shajeefareedi9467
6 жыл бұрын
Exactly! that's also my point.. goo.gl/iysGo9
@joelluv
5 жыл бұрын
Just get PCP. So you don’t get ripped off when you want to sale the car because you don’t own it
@stephenrichards5386
3 жыл бұрын
Driving around at the wheel of a car while explaining something that might be very important, IS STUPID !!
@VegasMilgauss
Жыл бұрын
Dave Ramsey
@tinacape2326
5 жыл бұрын
Loads ripped off prsonal loan 3.9% then you own it.
@Dic-yy1rj
3 жыл бұрын
He bought a brand new car! That was his mistake
@stephenrichards5386
3 жыл бұрын
Doing important and complex video in a car is stupid. It doesn't allow your viewers to see and grasp the info and the video is about you transferring your knowledge to me. Twice i tried to watch and gave up both times
@seckinboy
3 жыл бұрын
I disagree, Let’s say you bought a car for 20k and put no deposit down with £300 monthly payements after 24 months you go to sell the car and it’s worth 10k. Yes you haven’t paid enough of the finance off so you will have to dip into your pocket. But it’s the same thing when you buy cash. You will still sell for 10k after 2 years. Just with the finance you haven’t paid 10k depreciation yet. I’m for finance. And most successful business men are too. You just need to the right choice for you.
@RonniesPokerRants
5 жыл бұрын
Is this for the many utter dummys out there, as this was class 1 at 5 yrs old, arithmetic and common sense for idiots. I learnt nothing. What about warning peeps of their maximising trade in, minimising purch cost after negotiating on both, minimising the apr rate, look for around 6% or less and no doc/admin/fees, and ensure with what he is saying that you are not paying for the Brooklyn Bridge, or Tay Bridge, within your quote just because your comfortable with the monthly payments, ie no unwanted ins/warranties leather cleaners, and no rip off int., done 55 secs
@pavzutube
6 жыл бұрын
Ok do you need to drive to talk about this !?
@evertcomeriii6894
6 жыл бұрын
What is a ballon payment?
@joeltorres2255
6 жыл бұрын
a balloon payment is when your late on your car note then the dealer charges you...extra also when you pay off your car or truck you will start paying the balloon payment
@thooney2934
Жыл бұрын
You have to make the final payment with a balloon tied to the cash
@JB-ki9ql
5 жыл бұрын
Lot of noise in the cabin of your car.
@davidskeeterskeeter1835
6 жыл бұрын
If I can’t afford to buy a car outright,,I don’t buy it,,I save up,!,,if you think I’m just a miserable old fart,,,,I’ll tell you I’ve just taken delivery of my brand new Bentley GTC,,quite east when you’ve paid no interest on car loans for 29 years,😂😂😂😂
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