3 biggest mistakes when getting a car loan

Time and time again I see too many people making the same mistakes when it comes to getting a car loan. Lets learn not to make these and save ourselves thousands of dollars in the process!

Good morning guys back with another video and today we’re talking about car loans yet again it’s one of my favorite things to talk about but today we’re gonna talk about the three biggest mistakes people make when getting a car loan these are things that can hurt you big-time if you fall into this trap and so we want to make sure that we don’t do that alright so

Let’s start this off really quickly number one they pay way too much for the price of the car okay i don’t know how many times i’ve applied for a car loan for somebody and they’re just in love with this car they want it and then i go in to run the value of the vehicle and they’re paying twenty thousand dollars for a car that’s only worth fifteen thousand and and

Their eyes are like okay well yeah you know dealerships gonna try and make money they’re gonna charge me more than what the car is worth but they love that car so much they’re okay with it and that’s just dumb don’t fall into that trap just because the dealership is gonna try and make some money it doesn’t mean it should come off of you okay so do not pay too much

For the vehicle look at what the average trade in prices talk to your financial institution about the vehicle that you’re looking at they’ll tell you what it’s worth don’t fall into that trap i mean literally in the past week alone i helped out a member that had $12,000 financed on a car that was worth $4,000 all right there are eight thousand dollars upside down

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That’s ridiculous okay so number one don’t pay too much for the vehicle number two get a good interest rate kind of similar to what we were just talking about people loving the car so much that they’re willing to pay too much for it other times they love it so much they don’t really care what the interest rate is either and you know that’s just it’s gonna cost you

So much money in the long run if you fail to get it a good interest rate kind of like what i was saying about the person that owed twelve thousand dollars on a car that’s worth four thousand i can honestly say within the past two weeks i’ve refinanced a 23% car loan a seventeen point nine nine percent car loan i know it remember an 18 percent car loan and that’s

Just within the past three weeks okay so get a good interest rate guys we know based off all the other videos how much of a difference your interest rate is gonna make in the total amount of interest you pay in the long run okay and cars aren’t cheap so get a good interest rate if you’ve got a bad one right now refinance your vehicle talk to your institution see

If you can drop the rate but guys pay attention to the rate do not go get a car loan at any higher than ten percent okay and even 10 percent sucks that is not a good interest rate so if you’re any higher than that you need to do something about it number three is financing the vehicle for too long of a term okay it’s one thing to get a car loan and pay it off in

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Two or three years it is something else entirely to finance a car for six seven or eight years i mean that’s ridiculous and i know everyone wants the car of their dreams and they want to drive a nice vehicle something that they enjoy driving but if it’s gonna take you six or seven years to pay that car off you’re just throwing away money in interest so don’t fall

Into the dealership trap of trying to find this oversized overpriced car loan fit your monthly budget by stretching it out for eighty four months or 72 months that’s just like i said throwing your money away okay and if you’ve got a bad interest rate on top of that then you’re doubly screwed so a lot of the times what i’m talking about how i save people so much

Money on their loans a lot of the times is because they did just this they financed for way too long and they had a bad interest rate and that’s why we’re saving them upwards of five six thousand dollars just on one loan so that’s what i want to talk about today the three big mistakes people make them buying cars don’t make one of them if you’ve got yourself in

Kind of a bad situation watch these other videos get your way out of it especially if it’s interest rate related you can always change that so thanks for watching guys take care have a good day hey guys thanks again for watching this video i hope you learned something new from it and you were able to strengthen your financial position i’m gonna keep coming out

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With more videos so please stay tuned but go ahead and like subscribe comment and have a good day

Transcribed from video
3 biggest mistakes when getting a car loan By COMMON CENTS MIKE