How to Buy a Car *Finance Is Bad*

PCP, HP.. Finance options are weird and confusing.. Here i go through the basics and explain my views on Finance, Loans and Credit in general.. Hope this helps those few looking to buy a

Hi everyone welcome back to his channel now i thought i’d do a little video on how to buy a car it’s all leading on to leading on from should i say the previous video that i did around what cats buy is a first car you know the best first cast to buy and i thought i’d try and help as many people as i can with with how to buy a car because it’s something that you

Can get a lot of debt with it’s something that you can quite frankly mock up if it’s something that you know what it’s a key or keep for a long time and you end up in that financial agreement where you can’t get out of it unless you make an extortion amount of money you just pay off the remaining balance of the law or the credit card or the you know the finance

Agreement or whatever is that you’ve got the calendar now i do want to say this is not financial advice this is just me speaking from my own personal experience and from everything that i’ve looked down on you know i’m lying when i was looking at buying cars and things like that so try to sort of share a bit of my knowledge but as i say it’s not financial advice to

Cover my backside the way i see it there are four ways that you can buy a cat the first way obviously if you if you’re comfortable if you were able to do so it’s a bad cat out right now that’s obviously the preferred option in my opinion and the reason i say that is because i’m guessing if you’re looking at buying the first car if you’re looking at buying another

Car if you’re looking for this kind of advice you’re going to be looking at something that’s you know perhaps used most likely going to be between five and ten years old and cows do depreciate the master in the first three years so it’s not going to be something that you’re looking at buying an end of end up in negative equity strip where you know soon as you drive

Off the fall car i think i lose 10 to 20 percent depending on what cara is sometimes more so the best thing to do in my opinion if you’re looking at buying something five to ten years old maybe even older it’s paying cash now the second option is to obviously get fine clone bank loans are good and they can be bad you tied in and we’ll go more into the pros and cons

Of that in a minute third would be finance and fourth would be a credit card now a lot of people don’t normally think about that as it as an options buy a car but it’s something that i did with my silver coupe i’m currently driving at the minute and if you’re interested in how i did that let’s stay tuned to watch the rest of this video the first one then the first

Option is finance and finance is good because it lets you pay small you know monthly payments or sometimes weekly installments towards the cost you can get things like a pcp which means you don’t actually own the car you never will own the car but you can get into a you know a better car that’s you know probably outside of your price range problems then when you

Hand that vehicle back and the vehicle has damaged or if you want to modify your car like me because you end up getting bored of your cal within the first six months it’s not very good for stuff like that you can’t modify a car on pcp how your purchase is slightly different in that you buy the vehicle bit by bit you pay off the entirety of the of the lawn if you

Like all the financial agreement so hp’s a bit better in my opinion for that but it also costs a lot more so you can’t get into it into more of a car for your money so that’s sort of the pros and cons of a finance now remember finance is probably the highest interest rate out of all the options finances you can you know stray away from that interest rate as much

As you can with your other finance options that i’m going to offer you but as i said buying a car outright is gonna probably be the most the most financially beneficial way of buying a car but sorry for the choice viewers are saying the second option then would be to look at a bank loan now bank loans would work in a very similar way as opposed to higher purchase

But you would on the car from the outset whereas higher purchase you wouldn’t you only own the cow once it’s paid off so that the negatives entire purchase and facing fears that if you miss a payment they can see you care of you i know of a situation with hire-purchase where somebody had missed their last payment and they took the cow back and they were then left

Without a vehicle and the pit almost all of the car off because they didn’t physically own the car a bank loan is very different in that with the bank loan you own the car outright and you just owe money to the bank now they might give you a lower interest rate if it is specifically for a car and they’ve paid the seller directly in which case they would normally

Hold the car as you know as a reassurance sort of payment if you like should you miss any payment so they could then repatriate and take that car away from you in those in those instances but it is a lot lower interests regardless of how they work out regardless of how they do it at the bank that’s the big benefit in my opinion of a bank club so it also means you

Own the car so you use this yours and you’re free to do whatever you want with it while you are in that car which is a lot lot better than a pcp rai purchase where you are risking still on a higher purchase hp and if you modify the carrier asks or risking the fats that you know you might get taken away from you the backstop the financial agreement that you have with

Them as well because you’re going outside their contracts that you have to keep the vehicle standard so i prefer bank loans because you are in the car the cars yours you just don’t money that’s the crooks on it it’s a lot lower interest rate but you are still tied in for a long period of time very much like you know hire-purchase and pcp it’s not something that

I would recommend because i hate paying banks money for them to lend me money i just i don’t get that like if i’ve been a customer with a bank for x amount of time i violence buy a car from someone i don’t expect to pay interest on top of the cows value it just doesn’t make sense to me that that is a business that we accept as morally correct and morally accurate

Banks make money and so many so many other ways like the you know the financial market and things like that that they don’t need to make interest on things like that i get mortgages and why you would charge interest on things over such a long period of time of course because interest rates and things like that do go up and cost of living goes up on your annual

Cost of living goes up here in year so i completely understand mortgages but when you get in like a bank loan for two or three years i don’t really see why the needs charge interest especially when the fourth option credit cards but normally if you can if you’ve got good credit history i put these in credit history if you’ve got decent credit history can get an

Interest-free credit card now the interest-free credit card that i got helps me pay off the civic i helps me pay off the civic or so my insurance and everything else i’ve done a video click above on insurance explaining how you can get the annual rate and payment flow and that is simply through an interest-free credit card and that’s what i did i think two or three

Years into care ownership ended up paying the insurance off in one girl and then paint a credit card off in monthly installments without the interest rate if you like of paying monthly b and there’s a full video on insurance if you want to give that watch now i bought the car for 2,200 pounds buy online if you like on ebay appeared by paypal the difference between

The actual price was i think about 100 pound because they do take a percentage from you in some instances but if you were to gift it you will be charged anything then you can gift that amount of money and because you’re using pair pallets it’s seen as an online transaction as a purchase transaction it’s not seen by your credit card company or by most credit card

Companies as a cash withdrawal that you’d only get charged through in noah’s far when it comes to credit cards but that then allowed me to repair the credit card month or month and i didn’t pay any interest anything bought the price of the vehicle and that to me is so much better and cleaner way of being able to you know buy a car that’s a little bit outside of

Your budget or just not being able to save for and let’s say you need a car yesterday because you can’t spell the mrt like the red eeg did because of the rust let’s say you need a car and you can’t evolve with repairing your old car and you thinking you know what i want to rebuild my old car like i did i want to try and get a bit cleaner bit newer it’s ideal for

That sort of stuff that’s our situation so i hope you found this video valuable i hope you you know hopefully got a little bit of insight into what it means it’s a buy a cow and what which way and yeah like i say a bank loan if you don’t have very good interest because normally banks will be more lenient to lend to those that you have a current account with or if

You do have good credit history i’d recommend a credit card if you need a vehicle here and now rather than having time to save and the best thing obviously is to buy it in cash i would avoid finance like the plague and don’t get me wrong it helps you into much much better cars and it might be my words maybe in a few years where i could afford a bit better of a

Car and i don’t mind paying the interest and things like that but i just i just can’t justify add them in and i don’t think you should have to justify it when buying your first car especially if you’re thinking you’re gonna want to modify it you’re gonna want event in six to twelve months they’re gonna want something better once you’ve got years no claims bonus

Like we have here in the uk for insurance if you want introduced change in cairo if you’ve agreed to a three four five year finance agreement or bank loan even you’re not gonna have that freedom as much as what you would do if you were just to buy that cash straight out and have a very short repayment period like a credit card some shop you know some short-term

Bank loans are good for things like that what the cows y’all so you can always sell it to pay off the bank loan as well there’s another benefit of the bank loans so i hope you enjoyed this video if you did please give us a thumbs up click subscribe and hit the bell so you know if i have any future uploads i catch you in the next video bye

Transcribed from video
How to Buy a Car *Finance Is Bad* By Dan AYP