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Blessed to have you in my life brother . These dealerships be raping. Will reach out to you when I go to mercedes . Currently on a 3 yr lease with subaru. Lease ends in December. Appreciate the helpful tips . Stay blessed stay healthy .
Shop online. Test drive at the dealership. Go home and negotiate by texting. Agree to a price. Go to the dealership and sign the paperwork. Don't spend hours negotiating at the dealership like a clown.
Good strategies but going back and forth with an overpriced dealer will end in a loss even if you get a discount. The key is knowing how to find the dealers with the best prices.
@@DeshoneTheAutoAdvisor what I've done is pit dealer vs dealer. "Hey, thanks for the price quote. Xxx dealer gave me this price (made up number) for the same car but different color. Can you price match him?" I email all the area dealers until I get the price I want.
@@andyleo8418 wow they take your word for it 😂.. their business is the same as the other dealers and they’re willing to take your word that another dealer is gonna sell you a vehicle at a loss so they can then do the same?
@@dirtyaznstyle4156 I'm sure it's not at a loss. Just less profit for them. It depends on the vehicle and how much they are willing to sell it. I get rejected a lot but there's always one or two that are willing to work with me. The thing I like is not having to spend hours at the dealer. I negotiate whenever I feel like it. Sometimes I wait a day to text or email them back. If you are desperate for a car then this method might not work for you. This is a slow play sometimes.
I mean with school literally not teaching this and most ppl that go to dealerships being teens fresh outta high school, and you can see where I’m going with this
Anyone who didn't know this shouldn't be car shopping alone. I was told never to talk down payment or monthly payments until you settle on the price of the car.
ive got perfect credit so last car we bought I walked in, told them MY terms and told them either get it done or I'll go elsewhere. Got exactly what I wanted. Fair total price Zero down and less than $200 a month with no penalty for early payoff.
@@hawksrock3024nobody is negotiating at all be real! The only way to do this is go to the dealership the very last day of the years it’s THE ONLY way you will win at a dealership they HAVE TO and are VERY DESPERATE on that last day to meet quotas
@@marcelcovaci9922 and ideally you buy a car that's at least a few years older where that first massive amount of depreciation is over and you get a great car for much less then the perfectly new car (that will probably get a chip or something on it soon anyways) and it will maintain way closer value then you paid. Or get an even older car with a known reputation in a low mileage that seems like it might be the next to go up in price worse case you got a reliable car best case it makes some money when you wanna move on to something else
Get a pre approval from your bank or credit union and go to a car dealership with your money… get what you want. You pay for bank! No money down ever! My payments have never been over $300 & my newest is a 2021… I’m ever financing with a dealership! My credit union has MY best interest!
Remember, there is a thing called positive and negative equity. Before I bought my new car, I made sure my current car was in the positive. I used my car as a downpayment. I only owed $5500.00, and the car was worth $10,500.00, I even negotiated my APR. I paid my original car off early, so that allowed me to get back my warranty. A lot of people forget your warranty is worked into your monthly payment, so you are entitled to a refund if you payoff or turn your car in early. The refund amount for the warranty was $3000.00. The total amount put down on the new car was $8500.00. No money left my pockets. The old car was paid in full...all positive equity went into my new car. People dont realize that sometimes your new monthly payment will be higher if you have a negative balance left on the old car. That balance does not disappear. It rolls into the new car, which causes your new monthly payment to be sky high. Positive equity vs. negative equity.
this is what happen to me on a 2016 Altima paid 7k down ended up paying final payment was 20k on a 14,995 the car is now worth 10k now on Kelly blue book, listen to this man before you get rob blind. I Wish I had seen this video sooner. thanks, you for sharing THIS INFO SO PEOPLE DONT GET ROB BLIND like me
Check your paperwork. If you have a warranty or service contract they are what's called cancellable contracts. You can getva refund for remaining coverage. That could be a few thousand of your total gross if you didn't have negative equity. The interest is simple interest so had to be one of the two
Nissans are a bad brand, if you don't know by now. They don't hold their value worth a damn. Shop Subaru, Honda or Toyota. Nissan and Mitsubishi are the red-headed stepchildren of Japanese automobile engineering.
Yup people will shout from the hills “I didn’t have to put a down payment down” but don’t know the numbers or discount they got off market value/original price
Might as well just buy the car in full 😂 your logic is dum af , anyone putting 10-20k down & to still have to pay a $600+ car note the next month is a waste of money , your better off using your 20k to make ur monthly payments each month & keep your cash flow comming in ……….
@@DeshoneTheAutoAdvisor what if you buy a new car for 28K , Msrp is 25K car, you drive off the lot, it is now a used car worth 20K meaning you are " Up-Side down" on your loan owing 28K on a car now worth 20K. does that not hit your credit scores?
@@c1h2r3i4s56987 why would it? Your total debt doesn’t take into account the value of what the debt is for. Everything depreciates, they don’t care that your $1000 tv is never gonna bring $1000 at auction when calculating credit ratings. This is also secured debt if they don’t get their $28K they get the vehicle back. If it’s unsecured I pity the fool that co-signed your loan 😂
@@vincentthompson3662 Because they can make payment anything you want it to be and make you believe you got a deal. They'll sign you up for an 84 month loan to make your payments look good. It's all about the final price of the car, I don't give AF what the monthly payments are.
@@vincentthompson3662 because the sales person will dictate the monthly payment if they know your limits first. you can get a better deal if you negotiate the price of the vehicle first. Do the leg work before you walk into the stealership! Know your credit score, know what you can afford every month, and set a cap for yourself, you can do mock payments online to see what you can afford. If they ask you how are you are going to pay for the car you say “I’m undecided, depends on the price I may finance or I might have 30k$ in my trunk, now let’s talk”!!! Also, for every 1k$ you put down it’s 20$ off the monthly payment.
@@vincentthompson3662because you don’t want to solely focus on payment. What if I uncharged and just gave you the payment you wanted and then you pay 10k interest
You add $1000 to a down payment and it takes off like five bucks lol. Bought my car with no down payment so I could use that down payment money to pay off a few months of the loan instead
@@aniaoliviale4182 It's usually because the person's credit isn't in the greatest standing. Either way, if you don't have OR want to put $$ down... WALK AWAY! 🚶🏽♂️
I have two cars that I fully own. 2008 Lexus IS250 and a 2015 Toyota Corolla. Absolutely no cay payment and I love it! So liberating to not have this massive car payment per month.
@@jazmynbrown6820 the corolla is from an actual Toyota dealership. Paid in full when I got a 50k bonus and as for the Lexus it was my aunts who got in from a Lexus dealership. Don’t trust third party sellers I say. There could be issues with the car then you’re in a deep pit of bad luck.
Giving an option between paying the full price with the inherent interest or paying a down payment to lower your interest payments is a scam? Talk to your bank, not the dealership. They are the scammers.
It’s not necessarily wrong, but a big portion of that is if you’re financing, if there is more down payment that you could present to the finance company, then most likely they’ll sell you the contract at a lower rate, which means that you only have a maximum percentage you could sell it at now as a dealer.
Take a car for 15,000 for 500 a month if I can pay 5,000 down (no interest) now making it 10,000 for 250 a month now I can pay the other 250 towards principal only (no interest) The lower monthly payment you have the more you can pay principal only throughout the year I paid my 16000 year truck loan in a year
I want to finance a lower principal. Interest is accrued daily. That’s why I make a down payment. Then I refinance with a principal payment within the same week. Who the hell doesn’t know this?
Interest isn't accrued daily on a car it's calculated when they send you the payment info every month and it's not accruing interest it's just how much you owe is determined by what principal you still owe it's not a compounding interest.
Thank you. Been looking at getting my wife a newish ford explorer. It's been 12 years since I bought her a car. WOW!!! The costs of the cars on top of the monthly payment today is a total shock. Amazed they even sell one car at the lot.
Wait till you find things wrong with the used car. "Oh I did this", "Oh, my best friend was anal about maintenance", but then come to find out, they don't know what to look for.
Yes and no, see it depends on how much you putting down and what car. Cars lose value quick and you want as much equity in the car as possible just in case you need to sell. The name of the game is EQUITY AND ASSETS… I would put down even more if I could to be honest.
I didn’t put any money down on my last car note my note was only $250 month car depreciated fast I still have 2 yrs on the loan I am Selling the car this weekend and now I owe about $1500 more on the note than the car is worth.
I used to worked for Toyota Penske and what I know is that a down payment is to protect yourself if anything happens to you once you leave the dealer you get hit or whatever the money you gaved as down payment is to recover the lost of the car
I worked at a dealership in Arizona and I would focus primarily on what you were looking to pay a month for example your car would be 20k and we would put a 3k pack on it plus tax title and license you’re driving off at like 27-28k that’s not including warranty or gap insurance 🤷🏽♂️
Down payment will help you get approved. A higher down payment, less risk to the bank. Bc you’re financing less. You get a 25k car and out 5k down, youre only financing 20k. And bc it’s lower risk, lower interest rate and more likely to be approved .
If your not planning on paying a 7 year note and will trade it in in a year or so than it don’t matter too an extent. The thing is if you can’t afford something people usually buy junk or think not having payments is the way too go but once u pay off that car for 7 years you gotta get another car all over again cause u have a shit ton of miles. Having a new car and payments you can comfortably make could be worth it. You have peace of mind having warranty and a newer car. Yeah you gotta pay for it but don’t we pay for everything we need in life anyways. And if you can’t pay the payments Turo your car and let the renting pay your payments
I bought a Mercedes-Benz, put down $18,000 plus traded in my Accord, and got $11,000. I negotiated the price down before I even told them that I was putting all that money down. Personally, I wanted a low monthly payment because I wanted to buy a second house, and I didn't want a mortgage lender to see that I have a big monthly obligation for a car. I also went in with a pre-approval and a check from my credit union with 2% interest, something that they couldn't offer.
Advice: ask who you bank with for a loan before going to a dealership then they aren't selling you anything when you already know what you want. Worked for me
True, deals involve the overall price of the car. Anything that involves how frequent you pay something ISNT a big win. The big win is if you can print the overall price of the car down at least 1500 dollars
I put a down payment on a car yesterday after I got them to go under invoice and drop all bogus fees. Got the car down to $26,125 remaining after I put the $2500 down. My interest is 4.49% but payments are $415. Why is that? Why are they not cheaper and based on the remaining $26,125. It’s like they are still charging me interest on my down payment.
100% correct. I made a similar video talking about how you don’t need a down payment except in very specific situations. But it never has anything to do with the deal or the price.
I have never ever played any games like this buying a car. Any salesman that says 600 a month and not the price of the car gets the BOOT. Straight up. SMH.
Because salesmen are only there to sell the product. We don’t have anything to do with the money involved in the deal. We pick a vehicle that pits your needs and then we show you payments that would be most convenient, if we don’t agree on a number or a vehicle I have to go to my manager and get things switched, discounted or numbers moved to make it more convenient to you. Salesmen decide nothing that’s what the managers are for
Thats why you want to know total cost and not let them know how much you can afford on a monthly basis. They will back you into the payment you can afford without realizing how much you end up paying total. Figure out the total cost out the door and negotiate on those things you can negotiate. In this market it's harder than it used to be but the concept still applies.
Your loan to value ratio, payment to income ratio, and debt income ratio, affect the interest rate on the approval. The more money down improves all three aspects of auto loan. Ask for two options one with no money down and one with 5000 down. 5000 down alone is $100 in monthly payment. Then determine if the lower interest rate and overall lower payment is what you would prefer over a higher payment with no money down. At the end of the day it’s your decision.
This cat has the best info....got a daughter and 3 grandkids and iv have been telling my daught this ever since she got married the 1st time and her busband was a complete idiot and terrible with money. Since she got rid of him she has learned so much and i am already teaching my grankids the same info your giving out on here...need more folks like you brother spittin all think knowledge you think would be commen since but then again its knowledge and life skills like this they should be dishing out in schools so kid's learn everyday life skills they can use and not learn and forget or never use
you're a smart guy, love your content. BUT.... The problem with this advice: "how much is this car?" should ONLY mean "What is the actual price of this car"? Buying based on a payment not on a price means you cannot afford the car. Buy a car that's either close to or all cash. or at most 24-36 months. that's key.
I took my friend to get a car and he didn’t like the deal he was getting so I was looking at other dealerships close by and I mentioned to him that there’s another dealerships down the freeway and I guess the sales manager heard that and gave my friend a better deal
After you buy your shiny new car and drive it off the lot, it typically loses 9-11% of its value instantly. The down payment is used to protect the buyer from negative equity and having an immediate upside down auto loan.
"10 year mercedes/gm sales pro" made all the money using the word tracks he used on other people he's now telling you to look out for. Facts are if you want said car and payment is to high. You need money down to get payment lower. If you don't have perfect credit sometimes it can mean a lower rate or maybe there's special apr going on with specific down payment. The fact is regardless you are indeed getting a better deal. Money down means less interest paid overall. The dealership prefers you to put 0 down if you can so they get paid more for the deal.
You should always walk. When you buy a car, test drive, then get their out the door price in writing. Then shop that price around with all of the internet sales people in your area. Never buy a car the first day, unless the out the door price is so unbelievably low that no one else could realistically beat it. Don't negotiate at the dealership. Do that sitting at home. Only thing to do at the dealership is test drive and sign the paperwork. Be sure the stand firm with the F&I person, they'll try to sell you a lot of stuff when you're signing your papers.
The monthly payment is what the salesman uses as leverage to get you to sign. Only way to lower the payment without changing the sales price is by extending the loan term. Which means paying more in interest. 7 year loan on 60k at 7% means youre now paying 100k for a car that will probably be worth only 30-40k in a few years. Dont negotiate monthly payment at the dealership. Do the math yourself and figure out what you can afford before you go to the dealer. Then negotiate the sales price. Its not rocket science.
As a manager in finance, a down payment can improve the loan to value ratio you are applying for and absolutely help you qualify for a better teir approval and lower rate. Im just saying, not to dispute your video. Money down, as long as every penny applied goes towards the balance financed, is always a good option because you pay interest on a smaller amount of money and it's less debt. And can definitely help you get a better approval
When you learn the new way to shop you'll understand you don't need me there. If you ever need help, check out my car shopping resources here www.CarsFromHomeToolkit.com
If it’s getting you into the car you want, and making the payment one you can afford…. Is that not getting a deal? You help them by giving em some cash down and they help you get a car you WANT. Too many people go to dealerships and get a car they don’t want because the payments are cheaper. My advice, you find a car you want and fall in love with, put cash down to get the best monthly payment. The monthly payment is what kills people, and also is the reason most people get repoed.
Don’t buy vehicles without putting down at least 20% so you’ll always be able to trade and have something without issues. Unless you bought a car in Covid
What this guy said doesn't make any sense. If someone ask how much the price of a vehicle is how would you be able to tell them how much it's per month when you don't know if they have a trade-in, have a down payment or even how long they want to finance the car for?
a car payment is based off like this if the car is 25,000 and u put down 5,000 it takes that 20k and add's the taxes and fee's from there every 1,000 u have its $20 bucks less to your payment per month so if u pay 475 a month u would need to put down a extra 3,000 bucks then some to get u to 400.it is also based on your credit score too.case and point don't buy a car u cant afford its stupid.
I was looking for this comment. Just went through this today with my son. Car 16k+, down pmt $3k, dealership added tags, tax, & title brought it up to 17k+. I asked them to add Gap & 3 year warranty, now it’s $19k final price. I told my son we’ll pay $200 extra monthly toward principal to pay off early. Before I went, I had a pre-approval already, so I really only negotiated the overall cost. After getting the price where I was comfortable, I discussed the payment years which I noticed the shorter the loan, the better the APR. I chose the APR in the middle to get comfortable payments for my son after combining with car insurance.
Yeah you’re exactly right. They negotiate the payment so you can afford the car by lengthening the loan duration. In the end, you’ll be paying more when you think you’re saving.
You can also fool yourself into a lower payment by adding another year or two. Lower payment yes, but overall in debt longer and paying thousands more in interest.
Probably whats happening too is the sales guy starts off with $600/mo, not saying its a 6-year note. Then the sucker says yeah i got $5K and he then says we can get you down to $480.... On a 7-year note. He never told you the term so you think you got a good deal.
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10 years in the business? You're trash, bro.
I tried to sign up for the class but it's not accepting my email
Blessed to have you in my life brother . These dealerships be raping. Will reach out to you when I go to mercedes . Currently on a 3 yr lease with subaru. Lease ends in December. Appreciate the helpful tips . Stay blessed stay healthy .
Where can I find the 🧢?
People need to be explained this 🙈
Shop online. Test drive at the dealership. Go home and negotiate by texting. Agree to a price. Go to the dealership and sign the paperwork. Don't spend hours negotiating at the dealership like a clown.
Good strategies but going back and forth with an overpriced dealer will end in a loss even if you get a discount. The key is knowing how to find the dealers with the best prices.
@@DeshoneTheAutoAdvisor what I've done is pit dealer vs dealer. "Hey, thanks for the price quote. Xxx dealer gave me this price (made up number) for the same car but different color. Can you price match him?" I email all the area dealers until I get the price I want.
@@andyleo8418 wow they take your word for it 😂.. their business is the same as the other dealers and they’re willing to take your word that another dealer is gonna sell you a vehicle at a loss so they can then do the same?
@@dirtyaznstyle4156 I'm sure it's not at a loss. Just less profit for them. It depends on the vehicle and how much they are willing to sell it. I get rejected a lot but there's always one or two that are willing to work with me. The thing I like is not having to spend hours at the dealer. I negotiate whenever I feel like it. Sometimes I wait a day to text or email them back. If you are desperate for a car then this method might not work for you. This is a slow play sometimes.
@@dirtyaznstyle4156 most dealers will say, you got a good deal. Go with that.
Whoever did not know this already, needs to refrain from buying anything that requires a down payment 🤦🏽♀️🤦🏽♀️🤦🏽♀️🤦🏽♀️🤦🏽♀️
Here for this comment.😂😂😂 they life is in shambles 😂😂😂
@@rhondacommander5233 literally tho LOL
I mean with school literally not teaching this and most ppl that go to dealerships being teens fresh outta high school, and you can see where I’m going with this
@@guard4617 their parents should be teaching them things like this since school doesn’t. But I get your point
That means you’re broke and bad at saving money which means you can’t make payments on the long run which means your credit is garbage.
The shenanigans we go through just to buy a car 😫 like why all the BS & SHYSTY ISH!!!! Its sickening frfr
government making laws to protect buyers everywhere else, but youre on your own against these crooked car dealers
@@Platinum-Ninjathe government crooked
Anyone who didn't know this shouldn't be car shopping alone. I was told never to talk down payment or monthly payments until you settle on the price of the car.
ive got perfect credit so last car we bought I walked in, told them MY terms and told them either get it done or I'll go elsewhere.
Got exactly what I wanted.
Fair total price
Zero down and less than $200 a month with no penalty for early payoff.
It would be great if they taught this in high school along with balancing expenses and a checkbook
They did! You weren’t paying attention!!
Most people are just focus on the monthly payment. They don't even think too much of the interest rate, monthly term, and final price.
Correct, you should be negotiating the price of the car not the monthly payment.
@@marcelcovaci9922 No one's "negotiating" an internet price. Get real.
@@hawksrock3024nobody is negotiating at all be real! The only way to do this is go to the dealership the very last day of the years it’s THE ONLY way you will win at a dealership they HAVE TO and are VERY DESPERATE on that last day to meet quotas
@@marcelcovaci9922 and ideally you buy a car that's at least a few years older where that first massive amount of depreciation is over and you get a great car for much less then the perfectly new car (that will probably get a chip or something on it soon anyways) and it will maintain way closer value then you paid. Or get an even older car with a known reputation in a low mileage that seems like it might be the next to go up in price worse case you got a reliable car best case it makes some money when you wanna move on to something else
Because payment is what knocks at your door every month
Get a pre approval from your bank or credit union and go to a car dealership with your money… get what you want. You pay for bank! No money down ever! My payments have never been over $300 & my newest is a 2021… I’m ever financing with a dealership! My credit union has MY best interest!
Can u explain more
Wow thanks for the tip
💯
You need good credit for that
@@undisturbed809and?
Take the car without the down payment and then send the five thousand to the lender as first payment..
This guy knows the cheat codes to the game of life. For real this would be the best thing to do
It's the same thing
@halo1983 yes halo, it's the same thing and worse because you're not getting the benefit of the lower car note
@@HaLo-bm1qv No he need to make a payment first then put the 5k towards the principal before the next payment due.
For some people they need the lower monthly payment. With 0 down their payments are higher for the rest of the term
I purchased a 2023 Lexus GX. I told them payment terms, nothing down, and the amount I wanted to spend on the loan. Drove home happy!😊🙏🏽
You got booty busted Regina good luck to you
Remember, there is a thing called positive and negative equity. Before I bought my new car, I made sure my current car was in the positive. I used my car as a downpayment. I only owed $5500.00, and the car was worth $10,500.00, I even negotiated my APR. I paid my original car off early, so that allowed me to get back my warranty. A lot of people forget your warranty is worked into your monthly payment, so you are entitled to a refund if you payoff or turn your car in early. The refund amount for the warranty was $3000.00. The total amount put down on the new car was $8500.00. No money left my pockets. The old car was paid in full...all positive equity went into my new car. People dont realize that sometimes your new monthly payment will be higher if you have a negative balance left on the old car. That balance does not disappear. It rolls into the new car, which causes your new monthly payment to be sky high. Positive equity vs. negative equity.
Your “subscribe so you don’t have buyers remorse” was subtle, effective, and placed into your short in a very clever way… subscribed 😎💪
this is what happen to me on a 2016 Altima paid 7k down ended up paying final payment was 20k on a 14,995 the car is now worth 10k now on Kelly blue book, listen to this man before you get rob blind. I Wish I had seen this video sooner. thanks, you for sharing THIS INFO SO PEOPLE DONT GET ROB BLIND like me
😩😔 ugh, im sorry
Check your paperwork. If you have a warranty or service contract they are what's called cancellable contracts. You can getva refund for remaining coverage. That could be a few thousand of your total gross if you didn't have negative equity. The interest is simple interest so had to be one of the two
First mistake buying a Nissan
Nissans are a bad brand, if you don't know by now. They don't hold their value worth a damn.
Shop Subaru, Honda or Toyota. Nissan and Mitsubishi are the red-headed stepchildren of Japanese automobile engineering.
I never understood how this isn't obvious. You can make a $100k car cost $200/month with a big enough down payment.
Yup people will shout from the hills “I didn’t have to put a down payment down” but don’t know the numbers or discount they got off market value/original price
Might as well just buy the car in full 😂 your logic is dum af , anyone putting 10-20k down & to still have to pay a $600+ car note the next month is a waste of money , your better off using your 20k to make ur monthly payments each month & keep your cash flow comming in ……….
@@DeshoneTheAutoAdvisor what if you buy a new car for 28K , Msrp is 25K car, you drive off the lot, it is now a used car worth 20K meaning you are " Up-Side down" on your loan owing 28K on a car now worth 20K. does that not hit your credit scores?
@@c1h2r3i4s56987 why would it? Your total debt doesn’t take into account the value of what the debt is for. Everything depreciates, they don’t care that your $1000 tv is never gonna bring $1000 at auction when calculating credit ratings. This is also secured debt if they don’t get their $28K they get the vehicle back. If it’s unsecured I pity the fool that co-signed your loan 😂
A lot of people don't know this and get taken advantage of every day. Thanks.
Never talk about monthly payment. Negotiate sales price.
Why not talk Monthly payment It has to be something that you can afford to pay every month
@@vincentthompson3662 Because they can make payment anything you want it to be and make you believe you got a deal. They'll sign you up for an 84 month loan to make your payments look good. It's all about the final price of the car, I don't give AF what the monthly payments are.
@@vincentthompson3662 because the sales person will dictate the monthly payment if they know your limits first. you can get a better deal if you negotiate the price of the vehicle first. Do the leg work before you walk into the stealership! Know your credit score, know what you can afford every month, and set a cap for yourself, you can do mock payments online to see what you can afford. If they ask you how are you are going to pay for the car you say “I’m undecided, depends on the price I may finance or I might have 30k$ in my trunk, now let’s talk”!!! Also, for every 1k$ you put down it’s 20$ off the monthly payment.
@@vincentthompson3662then buy a car you can afford
@@vincentthompson3662because you don’t want to solely focus on payment. What if I uncharged and just gave you the payment you wanted and then you pay 10k interest
You add $1000 to a down payment and it takes off like five bucks lol. Bought my car with no down payment so I could use that down payment money to pay off a few months of the loan instead
used the down payment in a HISA and later on paid off a few months
It depends on many things though. Price of the car, interest rate, and fees.
I just payed off my car last weekend. This bs is behind me now
Isn’t monthly car payment high tho?
@@PaulSamaniego584 it’s higher but why drop another grand on the down payment if the monthly only decreases by $5 doing that.
Right and according to consumer law A down payment is not required.
Yep absolutely right
What are we supposed to do when their insisting it’s needed ?
@@aniaoliviale4182 It's usually because the person's credit isn't in the greatest standing. Either way, if you don't have OR want to put $$ down... WALK AWAY! 🚶🏽♂️
@@aniaoliviale4182 walk away
Exactly @@aniaoliviale4182
I have two cars that I fully own. 2008 Lexus IS250 and a 2015 Toyota Corolla. Absolutely no cay payment and I love it! So liberating to not have this massive car payment per month.
That’s great, but this thread is about financing.
Those are most likely auction cars or cars you got from some third party seller online. This man is talking about dealership cars.
@@puddincup9879thank you 😂
@@jazmynbrown6820 the corolla is from an actual Toyota dealership. Paid in full when I got a 50k bonus and as for the Lexus it was my aunts who got in from a Lexus dealership. Don’t trust third party sellers I say. There could be issues with the car then you’re in a deep pit of bad luck.
I know what you mean I have a 2010 camaro SSm and a 2019 Challenger paid for no notes!
With a $50k down payment, your monthly goes down to $0.
With a 100k car?
@@vizzyjay1357 if the payment is only $600 per month with no money down or $500 per month with $5k down, that's not a $100k car in this video.
We aren't all retired Richard, remember if we all weren't paying taxes you'd be broke right now
@@vizzyjay1357 only a $600 payment on a $100k car? How many decades are you financing it for?
SERIOUSLY?? 🤔🤔 No gasoline car is worth $50,000 dollars, you guys got to be kidding me!! 😂😂😂😂
No down payment!! Period!! Or pay cash if you can... on a car within your means until you can do better...
Never negotiate monthly payments!
That’s why I don’t pay no down payment for cars. I get my check from the credit union and get what I want.
Same here
I can’t wait for your master class on the 25th. Thank you, thank you for all the information. Looking to buy a car for Grandson.
100% correct - buyers THINK they're doing something smart when they're not. They get taken advantage of all the damned time.
All dealerships are scammers
Giving an option between paying the full price with the inherent interest or paying a down payment to lower your interest payments is a scam? Talk to your bank, not the dealership. They are the scammers.
It’s not necessarily wrong, but a big portion of that is if you’re financing, if there is more down payment that you could present to the finance company, then most likely they’ll sell you the contract at a lower rate, which means that you only have a maximum percentage you could sell it at now as a dealer.
Take a car for 15,000 for 500 a month if I can pay 5,000 down (no interest) now making it 10,000 for 250 a month now I can pay the other 250 towards principal only (no interest)
The lower monthly payment you have the more you can pay principal only throughout the year I paid my 16000 year truck loan in a year
I want to finance a lower principal. Interest is accrued daily. That’s why I make a down payment. Then I refinance with a principal payment within the same week. Who the hell doesn’t know this?
Interest isn't accrued daily on a car it's calculated when they send you the payment info every month and it's not accruing interest it's just how much you owe is determined by what principal you still owe it's not a compounding interest.
Interst on a car is a fixed rate.
Can you just come with me car shopping? 😂 Can we FaceTime? 😂😂😂😂😂
You definitely got my intention!!! Thanks for you knowledge!!!
I've never paid a down payment. My dad told me that goes right into the salesman's hand.
That's not true anymore. The entire borrowed money goes in to their hands lol
😂😂😂@@thomasj1026
Nope
That’s false, your down payment lowers amount financed and could possibly get you a better rate but it doesn’t go in salesman pockets
I see the Apple 🍎 didn’t fall far from the tree 🌲.
That down-payment really goes towards the dealer's commission, they get 10% of everything.
Not true
Well said , that’s one the best and most concise descriptions I’ve heard. Thanks 🤙🏻
Appreciate you 💯
You are so right. Down pymt goes to the commission of finance guy, sales guy,GM and most importantly people don’t read the contract
How do you know this? curious
Not true goes to the bank that gave you the approval
Thank you. Been looking at getting my wife a newish ford explorer. It's been 12 years since I bought her a car. WOW!!! The costs of the cars on top of the monthly payment today is a total shock. Amazed they even sell one car at the lot.
Thanks for watching my video. If you ever need help car shopping, consider visiting www.carsfromhometoolkit.com
@@DeshoneTheAutoAdvisor Thank we will. God Bless....Christ's Pastor
I rather buy used. Feels like too many mind games
Wait till you find things wrong with the used car. "Oh I did this", "Oh, my best friend was anal about maintenance", but then come to find out, they don't know what to look for.
21 years old every car I've had was used and never had any problems bc my dad and uncle's kept me up to date! With everything
@@CenobiteBeldaroil changes. Basic of all maintenance
Any tips for getting a good reliable used car? Don’t you have to finance those as well or are you talking cash car where you pay outright? Thanks
Exactly
I’m not mentioning how much of a down payment until the bottom numbers are where I want them to be. Otherwise I’m out the door.
Absolutely correct!! 👌🏽
Oh man why didn't I find your channel 2 years ago? Great stuff brother.
Just saw a BMW customer car deal, 2020 BMW 750li, $72,000 selling price, nothing down, 5.9 finance rate, $2400 per month for 36 months.
Take someone with you who's been through the foolishness that dealers play. Someone who can reel you back in before you make a huge mistake.
That should be common sense...
Lol yea fr duh if u put more down ofc ur payments gonna be lower
Key word “should”
Yes and no, see it depends on how much you putting down and what car. Cars lose value quick and you want as much equity in the car as possible just in case you need to sell. The name of the game is EQUITY AND ASSETS… I would put down even more if I could to be honest.
I didn’t put any money down on my last car note my note was only $250 month car depreciated fast I still have 2 yrs on the loan I am Selling the car this weekend and now I owe about $1500 more on the note than the car is worth.
I used to worked for Toyota Penske and what I know is that a down payment is to protect yourself if anything happens to you once you leave the dealer you get hit or whatever the money you gaved as down payment is to recover the lost of the car
I worked at a dealership in Arizona and I would focus primarily on what you were looking to pay a month for example your car would be 20k and we would put a 3k pack on it plus tax title and license you’re driving off at like 27-28k that’s not including warranty or gap insurance 🤷🏽♂️
Down payment will help you get approved.
A higher down payment, less risk to the bank.
Bc you’re financing less.
You get a 25k car and out 5k down, youre only financing 20k.
And bc it’s lower risk, lower interest rate and more likely to be approved .
That's where good credit comes in the bank will finance the car 100 percent no problem bad credit needs a down payment.
Never have been to a dealership, never will. Never slept in a snake pit, never will.😮
If your not planning on paying a 7 year note and will trade it in in a year or so than it don’t matter too an extent. The thing is if you can’t afford something people usually buy junk or think not having payments is the way too go but once u pay off that car for 7 years you gotta get another car all over again cause u have a shit ton of miles. Having a new car and payments you can comfortably make could be worth it. You have peace of mind having warranty and a newer car. Yeah you gotta pay for it but don’t we pay for everything we need in life anyways. And if you can’t pay the payments Turo your car and let the renting pay your payments
Facts!!!
Then why isn’t it optional to do a down payment
I bought a Mercedes-Benz, put down $18,000 plus traded in my Accord, and got $11,000. I negotiated the price down before I even told them that I was putting all that money down. Personally, I wanted a low monthly payment because I wanted to buy a second house, and I didn't want a mortgage lender to see that I have a big monthly obligation for a car. I also went in with a pre-approval and a check from my credit union with 2% interest, something that they couldn't offer.
Advice: ask who you bank with for a loan before going to a dealership then they aren't selling you anything when you already know what you want. Worked for me
But ho do you pay back the loan with the bank?
True, deals involve the overall price of the car. Anything that involves how frequent you pay something ISNT a big win. The big win is if you can print the overall price of the car down at least 1500 dollars
I put a down payment on a car yesterday after I got them to go under invoice and drop all bogus fees. Got the car down to $26,125 remaining after I put the $2500 down. My interest is 4.49% but payments are $415. Why is that? Why are they not cheaper and based on the remaining $26,125. It’s like they are still charging me interest on my down payment.
Down payment is necessary to give yourself a deal, then fools ain’t looking out for you.
😂🎉!
100% correct. I made a similar video talking about how you don’t need a down payment except in very specific situations. But it never has anything to do with the deal or the price.
Same for a house,,it's like what ever u put down over time u still pay that back u put down with interest
I have never ever played any games like this buying a car.
Any salesman that says 600 a month and not the price of the car gets the BOOT.
Straight up.
SMH.
Why do they always do the “ask my manager” thing?We’ve heard it all before. Nobody believes that anymore.
Because salesmen are only there to sell the product. We don’t have anything to do with the money involved in the deal. We pick a vehicle that pits your needs and then we show you payments that would be most convenient, if we don’t agree on a number or a vehicle I have to go to my manager and get things switched, discounted or numbers moved to make it more convenient to you. Salesmen decide nothing that’s what the managers are for
@@ihateastral Oh ok. There was sarcasm but I was actually genuinely curious to know. Thanks for the explanation.
@@ms.chelleg2068 well I’m just telling you the truth
@Ms. Chelle G I always tell them “just bring me the manager”. Lol
@@Healthylifelex ikr 😅 just skip to that part!
Thanks
Thats why you want to know total cost and not let them know how much you can afford on a monthly basis. They will back you into the payment you can afford without realizing how much you end up paying total. Figure out the total cost out the door and negotiate on those things you can negotiate. In this market it's harder than it used to be but the concept still applies.
Again, thank you for your wisdom.
Your loan to value ratio, payment to income ratio, and debt income ratio, affect the interest rate on the approval. The more money down improves all three aspects of auto loan. Ask for two options one with no money down and one with 5000 down. 5000 down alone is $100 in monthly payment. Then determine if the lower interest rate and overall lower payment is what you would prefer over a higher payment with no money down. At the end of the day it’s your decision.
Every sales person ask about credit score 1st
The down payment goes straight into the salesman pocket.
This cat has the best info....got a daughter and 3 grandkids and iv have been telling my daught this ever since she got married the 1st time and her busband was a complete idiot and terrible with money. Since she got rid of him she has learned so much and i am already teaching my grankids the same info your giving out on here...need more folks like you brother spittin all think knowledge you think would be commen since but then again its knowledge and life skills like this they should be dishing out in schools so kid's learn everyday life skills they can use and not learn and forget or never use
you're a smart guy, love your content. BUT.... The problem with this advice: "how much is this car?" should ONLY mean "What is the actual price of this car"? Buying based on a payment not on a price means you cannot afford the car. Buy a car that's either close to or all cash. or at most 24-36 months. that's key.
I took my friend to get a car and he didn’t like the deal he was getting so I was looking at other dealerships close by and I mentioned to him that there’s another dealerships down the freeway and I guess the sales manager heard that and gave my friend a better deal
How can a salesman say 600 a month without know what numbers they are working with?
After you buy your shiny new car and drive it off the lot, it typically loses 9-11% of its value instantly. The down payment is used to protect the buyer from negative equity and having an immediate upside down auto loan.
Does anyone actually think a down payment "gets them a better deal"? That's the first I've heard of that.
Tons of idiots do.
Ty for posting this
"10 year mercedes/gm sales pro" made all the money using the word tracks he used on other people he's now telling you to look out for.
Facts are if you want said car and payment is to high. You need money down to get payment lower. If you don't have perfect credit sometimes it can mean a lower rate or maybe there's special apr going on with specific down payment.
The fact is regardless you are indeed getting a better deal. Money down means less interest paid overall. The dealership prefers you to put 0 down if you can so they get paid more for the deal.
Keep helping the people. A kind heart is always welcome in heaven
Exactly never put a down payment
Don't be afraid to walk. Sometimes they come chasing, and if they dont it wasnt meant to be
You should always walk. When you buy a car, test drive, then get their out the door price in writing. Then shop that price around with all of the internet sales people in your area. Never buy a car the first day, unless the out the door price is so unbelievably low that no one else could realistically beat it.
Don't negotiate at the dealership. Do that sitting at home. Only thing to do at the dealership is test drive and sign the paperwork. Be sure the stand firm with the F&I person, they'll try to sell you a lot of stuff when you're signing your papers.
You’re killing it! Love it
The monthly payment is what the salesman uses as leverage to get you to sign. Only way to lower the payment without changing the sales price is by extending the loan term. Which means paying more in interest. 7 year loan on 60k at 7% means youre now paying 100k for a car that will probably be worth only 30-40k in a few years. Dont negotiate monthly payment at the dealership. Do the math yourself and figure out what you can afford before you go to the dealer. Then negotiate the sales price. Its not rocket science.
Went to look at some cars last weekend. Car lots are dead. Usually use to be packed on Saturday
Ok, but who doesn't know that!? It's common sense! Don't make a major purchase if you don't understand the financials of the situation!
Just ran across your content. It's very informative. Keep up the great work...
As a manager in finance, a down payment can improve the loan to value ratio you are applying for and absolutely help you qualify for a better teir approval and lower rate. Im just saying, not to dispute your video. Money down, as long as every penny applied goes towards the balance financed, is always a good option because you pay interest on a smaller amount of money and it's less debt. And can definitely help you get a better approval
Thank you Sir. Lots of expensive classrooms out there 👍!
The argument was the monthly was too high, notnthe cost of the car. There's no deception here.
Heck half the time a 5k deposit. Doesn't even go to the price of the car. It pays nothing but BS dealership fees
That is very true but only when you don’t know what you’re doing. Better grab a seat in class www.MAPSMasterclass.com
I want to take you with me on my next car purchase.
When you learn the new way to shop you'll understand you don't need me there. If you ever need help, check out my car shopping resources here www.CarsFromHomeToolkit.com
If it’s getting you into the car you want, and making the payment one you can afford…. Is that not getting a deal? You help them by giving em some cash down and they help you get a car you WANT. Too many people go to dealerships and get a car they don’t want because the payments are cheaper. My advice, you find a car you want and fall in love with, put cash down to get the best monthly payment. The monthly payment is what kills people, and also is the reason most people get repoed.
Not at problem. There's a maker that doesn't use dealerships, everyone pays the same price.
People are so bad at math it's incredible.
If you're talking about monthly payments you already lost.
Don’t buy vehicles without putting down at least 20% so you’ll always be able to trade and have something without issues. Unless you bought a car in Covid
I just talked my grand mother out of a down payment they wanted to take $15 off the payment for every $1500 she put down Mede no sense
Wow. I thought this was common sense. Thank you for informing people!
I appreciate it, my goal is to teach every consumer that will listen everything I know. Lots more helpful info coming 💎
What this guy said doesn't make any sense. If someone ask how much the price of a vehicle is how would you be able to tell them how much it's per month when you don't know if they have a trade-in, have a down payment or even how long they want to finance the car for?
a car payment is based off like this if the car is 25,000 and u put down 5,000 it takes that 20k and add's the taxes and fee's from there every 1,000 u have its $20 bucks less to your payment per month so if u pay 475 a month u would need to put down a extra 3,000 bucks then some to get u to 400.it is also based on your credit score too.case and point don't buy a car u cant afford its stupid.
. Try posting your comment with periods so we know where one sentence ends and the other starts.
@@MrSupernova111 21 people liked my message so it sounds like they understand what i was saying. So yeah
@@joseph10704 . Sounds like you're proud of your illiteracy.
I was looking for this comment. Just went through this today with my son. Car 16k+, down pmt $3k, dealership added tags, tax, & title brought it up to 17k+. I asked them to add Gap & 3 year warranty, now it’s $19k final price. I told my son we’ll pay $200 extra monthly toward principal to pay off early. Before I went, I had a pre-approval already, so I really only negotiated the overall cost. After getting the price where I was comfortable, I discussed the payment years which I noticed the shorter the loan, the better the APR. I chose the APR in the middle to get comfortable payments for my son after combining with car insurance.
A down payment will lower the total cost of the car. Why isn't that a good thing to do
My cousin bought his car ONLINE, no money down. Walked into to dealer signed and drove away
Yeah you’re exactly right. They negotiate the payment so you can afford the car by lengthening the loan duration. In the end, you’ll be paying more when you think you’re saving.
This is disturbing if people did know the information he just gave already. This works the same way with everything!
They really pocket the down payment and lower the price of the vehicle
I knew it! I have never put any money down on a car, or either I buy it straight out .
@@teresaevans4840 the IRS never sees that down payment money 😂
@@ernstjacques2056 you know that!
Huh lmao that’s false
You can also fool yourself into a lower payment by adding another year or two. Lower payment yes, but overall in debt longer and paying thousands more in interest.
Probably whats happening too is the sales guy starts off with $600/mo, not saying its a 6-year note. Then the sucker says yeah i got $5K and he then says we can get you down to $480.... On a 7-year note. He never told you the term so you think you got a good deal.
And then the payment monthly is lower but the payment time is longer
paying more interest in long run