How do you buy a car without getting ripped off? We go undercover to investigate how some dealerships push long-term loans without explaining all the risks.
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Regarding cars I follow 4 rules:
1. The car must be worth at most either 10% of your post tax anual income or 5% of your net worth.
2. Your downpayment most be a minimum of 35% of the FINAL value of the car (when you finance, the interest rate will rise the price of the car. You have to find out how much you would have paid for the car at the end of the credit to know how much its final value is) and the max term for the loan is 2 years. Paying 100% outright is also a good option
3. Buy used 2-3 year old models in the best conditions you can find them and ALWAYS negotiate the price, you have plenty of options. (This way you dodge most of the initial depreciation, ignore this one when buying collectibles/exotics that have a chance of apreciating over time)
4. Buy quality, the minimum time you should keep a car is 10 years. If it lasts you more, even better. If security regulations/characteristics change dramatically by all means you can bend the time you keep a car. One thing is being financially responsible and other completely different thing is being reckless.
Jusy my 2 cents on the matter.
Best way to save money is never step a foot onto a dealership's parking lot, you will always get ripped off there. Do shopping around on letgo, craigslist, etc to find a good used car for less than $5.000. Ask questions if not listed like milage, does it have a clean title (stay away from salvage titles), etc. look around to find a good mechanic to have it taken to to have a inspection preformed before you buy it. If they are reluctant on letting you or will not let you take it to have it inspected before buying, walk away.
Car's have doubled in price ever 10 years, how about just selling the care for what it;s really worth, A ford F 150 used to be a adverage Joes every day car, but no average Joe can afford a 50,000 dollar truck when you couls have got the same exact Truck in the early 90's foe 17,000 which was 5000 to much then WTF just stop buying them then the price will come way down.
It really comes down to the art of negotiation. More importantly, you gotta be able to budget how much can afford and for how long you can afford to take this own. At some point, people have to take accountability for the foolish financial decisions they make. Car salesmen are the lowest of the low. Yes, they should make mention of your financing options but they’re in it to make money, hence the importance of megotiating. Inform yourself before you blindly buy a wealth killer of a car note you can’t afford.
A question for Canadian viewers... are bi-weekly payments a normal thing there? Here in the US they always quote monthly payments.
Also, on this Chantel girl.... those things happening the first few months on a new car are covered by the warranty so she shouldn't have had to pay anything for those repairs.
you should not buy a car you cannot pay cash for... I've put more than 100 000 miles on several cars that I bought for less than 1000 dollars, and sold in better overall condition than when I bought them with minimal parts cost, and some minor work I did myself... This whole business is ridiculous.
Wait, how can you go into debt buying a Hyundai Elantra? Also, if it was a brand new car and the wheel bearings and engine fan belt went (never happened to any Hyundais that I know) why wasn't that covered under warranty? This video makes no sense.
I am into automobiles after sales for more than 20 years and being an Engineer my advise is never ever to buy a Hyundai or a KIA as they the most problematic vehicles that you can find i n the market especially vehicles with CVT transmission
This vehicles will reap you off
I actually went in to look at a new car with the same guy who sold me the car I have now and said that it would be a bad decision to get a new car..then explained it to us why! Glad He told us and was completely honest and not trying to sell us a car at all!!💕
A lot of people left comment that “ I don’t buy new car , blablablabla “ if no one buy or lease a new car , where you get your 2nd hand car ?
Meanwhile , can anyone share their experiences when they bought a bad 2nd car ?
Islam says " If you get involved in interest, get ready for a war with God and his Prophet"....i think nothing can ruin a person faster than a bad marriage and/or debt..sitting here in a 3rd world country i had thought Canadian and Americans must have been good @ understanding such tricks..but they r not
This is why I avoided going for a car, they could just smell me coming and screw me over. Got a bicycle instead and while I avoid the severe number crunching aerodynamics I know at least enough to be my own mechanic. No debts for me that go beyond the grave after sacrificing my firstborn and selling my soul, not doing it.
17:25 I didn’t get what he said, bringing a car back after 5 years, how will the person still 20,000 $ on the car and the car is worth 15,000$ how does thay happen? Can someone please explain it to me....
Sure blame the dealers with their tactics. But the consumer still needs to use their own brains on how to manage money. If you clearly cannot afford the overall price of the vehicle, why look at long term loans?
I just want to find a reliable compact suv (thinking RAV4) within my means of $15k maybe 3-4 years old. Get a loan from the bank and put $4k down on it from a car buying saving account I’ve saved up and pay the bank off in 3-4 years.
I remember shopping for a car and the salesmen told me if i wanted to buy a car in full he's going to jack up the price unless if i finance my car for 5 years. I'm never trusting sales men that only let you do the expensive option
When i was a kid in the 70s cars lasted 10 years, now they last 10-20 with proper maintenance. Most salesmen do not know anything about contracts and financing. I am in sales and it is hard. I think if they do not misrepresent anything that has been okay, if they give Dad-like advice that is a bonus but not lying and not ripping you off is enough that they should escape being called misleading. It is monumentally hard. I explain things 6 times to my customers selling other non-car items on open loans and I warn people because my dad was an accountant and I know how to read contracts. Nonetheless, most customers do not have the patience to sit and hear a full explanation and some feel insulted when I give Dad advice. Most think it sounds too complicated and scary and confusing and adding too much Dad advice will make you sell nothing. Being open and honest is I think reasonable. Sales is so incredibly hard most people would never even try. I have integrity and I lose a lot of business because my truth does not sound as attractive as the lies or misinformation from some ignorant or dishonest salesmen.
To be fair, the salesman IS telling them the truth and being honest. He says it is an open loan and they can pay it off anytime and it would be good to do that. That is completely true. People already know that is hard. Calling it troubling is unfair to the salesman.
I don't see what's wrong with an interest-free loan in the old days after paying for oil changes maintenance and repair plus the total combined accumulated interest be paying a lot more back then than today. Now if we could only get the government's power back to print its own money without having to pay interest, which is greater by many multiples than the principal we owe, we could once again fund or social programs and infrastructure very easily and most importantly take it off very quickly, you see Canada lost its power to print its own money without paying interest back in the 60s when the Central Bank of Canada really was the People's Bank facilitated by the government on behalf of the people. That is no longer the case, and it is the biggest contributing factor to our enslavement and we're not even aware of it, the irony being opposed to no interest car payments while we're paying an interest on money printed for us by European families at an interest by which not even our great-great-grandchildren will be ever able to pay it back, please consult with constitutional lawyer Rocco Galati versus the privately owned Central Bank of Canada
I KNOW PEOPLE WHO BUY CARS ON A 7 YEAR PAYMENT PLAN , THEY PAY 3 YEARS AND THEN DO INSURANCE FRAUD BY CRASHING THE CAR SO THAT THE INSURANCE PAYS IT OFF. SOMETIMES THEY WILL DAMAGE PARTS THAT CAN EASILY BE FIXED AND THEY CASH IN ON THE INSURANCE CLAIMS AND FIX THE CAR THEMSELVES WITH BOLT ON PARTS. AND THE INSURANCE COMPANIES CAN'T DO ANYTHING ABOUT IT SINCE FULL COVERAGE IS REQUIRED ON FINANCED VEHICLES.
This girl is super uninformed! I don't blame the dealers, although they are scum! I blame Canada's educational system! She should sell the car asap and get $1000 dólar beater! Save an extra $1000 for eventual repairs and be done with her negative equity in a couple of years!
If I sold cars, I'd only want to make a sale if each party would be getting what they needed. If the business is legit, then that should be the case. That's probably one of the factors to why I don't sell cars.
I’m almost 28 and have only had used cars, it’s what I’ve been able to afford for now. Dealership loans should only be agreed upon when you know for certain the payments can be made as well as the insurance policy for it, not to mention any repairs that would be necessary down the line. Vehicles are expensive and I’d love to have something shiny and new but it’s not realistic. Please truly think about what you’re getting into before taking that leap!
Heartbreaking to see this happen to her 50k for a Hyundai. I say repo that junk save enough money to buy a used cheap vehicle to move around. Wasting her youth killing herself working two jobs. you can see the stress in her face.
I totally agree. After buying three new cars, I can say that the first thing the salesperson seems to want to talk about it what kind of payments do I want, more often than mentioning the actual price of the vehicle to start with.
honestly, just buy a car cash. Dealerships require full coverage insurance (at least where I live in Texas) and that is usually over $200 a month besides the car payment. I always check Kelly Blue book to check the sale value of a car Im interested in so I dont overpay.
Them offering you a long term loan is not taking advantage. lol. They told her up front the length, interest and payments. Car dealers are quite often some shady dudes and this is a big ado over nothing because they couldn't find anything worse in their hidden footage.
This reminds me of the predatory student loan system in place in the US. They sold us all on student loans, with the promise of jobs. There are no jobs though, because robots can do everything better than sheeple. And it seems as if the loan servicer Mohela (means "hill" in Russian) is a private company, not a government-ruled institution.
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