CAR FINANCE EXPLAINED! 4 Ways To Buy A Car

[@StrapAnuva1]

Great information for people in the market. I personally went for a bank/personal loan when purchasing my recent car. The reasons weren't for the interest rates (they were similar) but for the reason i can make as many over payments as I want without no additional cost or settle the loan in full early with no extra cost. I think when buying a car if you are going to finance it you may want to ask about over payments if it is something you consider doing.

[@mahmoudqesmi8703]

I got a question. If you finance through the bank can you register the car to someone’s else’s name even though the loan is under your own name.

[@StrapAnuva1]

@@mahmoudqesmi8703 yes

[@jxybeats229]

This guy is the god of explaining things I’m shocked you ain’t got millions of views man keep it up

[@BristolF]

A hot topic that I see a lot of people worrying about is excess mileage. Specifically, if you terminate your contract early and have excess mileage, can the finance company charge you for that excess. Obviously if you let your term wind down as normal you are liable for any excess mileage at the end, but if you end your contract half way through, does the finance company have any leg to stand on?

[@akashsp]

Matthew Gammond hi from my experience it is pro rata. If you are contracted to be doing 12k miles per annum and you give the car back after 10 months- you would be charged for any mileage over the expected 10k. It’s a bit odd but this sort of situation is quite rare. I experienced it as I gave back a lease car a month early to make way for a new one

[@scoorappap2822]

Buy things which appreciate in value and rent things which depreciate in value! Rich man advice!

[@boyboy6123]

Elaborate on the renting part please

[@jerrylundegaard2592]

Buy a car for $30,000 drive it for 5 years. Sell/trade for $12,000. Cost $18,000 or $300 a month. Lease $30,000 car for $300 a month. Makes little difference whether you buy or lease (rent) a non appreciating in value car. The advice you state is fatally flawed and overly simplistic. Common sense advice!

[@laurence5761]

@@jerrylundegaard2592 Rent the car for £300 a month and use your capital of £30'000 to make a decent percentage gain per year which will cover the cost of owning a car. It makes a huge difference having your money not working for you and stuck in a depreciating car.

[@scottr2706]

@@laurence5761 A person is rarely stuck with a depreciating car. In most cases, the car can always be traded or sold. In any case, a car purchased for personal use is not an investment, it is an expense. Many people seem to make the action of making this expense overly complex. It is not, it is just an expense. How you structure that expense depends on each person's unique set of circumstances. What approach is best for one person is not always best for every person. If you lease (rent) a car for 36 months you are likely getting a relatively inexpensive vehicle. Perhaps a $20,000 vehicle. If you pay $300 a month, you pay $10,800 over the 36 months. If you purchased the $20,000 vehicle and sold it after three years you will like get around $10,000. So you spent basically the same, around $10,000. The question becomes is it more economically to pay cash for the vehicle or finance/lease the vehicle? If the person has good credit, financing or leasing may be the better choice. If a person has bad credit, paying cash will be the better choice. If you pay cash, you can replenish your cash each month by what the monthly payment would be had you finance the vehicle.

[@laurence5761]

@@scottr2706 I understand where your coming from and your point but my point was instead of spending that 20-30k on a car if you have learnt a skill which can give you a decent return each month lets say 3% a month on that money it is better to keep the cash and finance. If you can't do that then I guess it really doesn't matter.

[@Qwertyisgajidbd]

What is the best way to get out of pcp without losing money

[@sdsd-cq9tx]

Thanks so much bro god bless you

[@sdsd-cq9tx]

Bless you bless bless

[@EverydayFinancePodcast]

Thanks for the video man. We are about to do a podcast on smart car buying so we are looking at a lot of stuff rn.

[@XSR21X]

Explained it in simple terms ! Thanks

[@AnimosityGG]

This helped me, as I am in fact, a dummy.

[@user-om2fg7yh6s]

Important to remember with finance your credit score a huge factor - If your credit is poor then lenders wont even consider you for the finance, wether its PCP or HP. Same with a personal loan, the bank wont give you the loan at all if it's over say £10k. There are specialist lenders for people with bad credit but they'll just rope you into a deal where you'll end up paying £30k over 5 years for a car thats being sold for £16K.

[@temelerdinch528]

I want you to make a video explaining selling online tips such such as buying and selling tips or any taxes to pay 👍 great videos Anish as I enjoy all of them

[@iohohohohioio9080]

Hi Nish, I heard that if you pay a part of car by credit card you're protected under section 75. Most dealers won't accept credit card now as they can't pass on fees. Cash you pay off pcp with credit card to get that protection? Does pcp generally offer more protection?

[@ruimarques_]

Very nicely explained, with some common sense added. Thanks ! 👌

[@lindacollins6407]

I was finding it so difficult to buy a car on credit cause my credit scores was so low and @exceptional_tools on lG help me out and he fixed my scores and I got a car on credit I’m so great full thanks so much I recommend him you should try him you would get a car on credit

[@jamesdean6451]

Great vid as always Anish. Regarding negative equity unless you pay a massive deposit you will be in negative equity on a PCP for most if not all of the term. Rarely are you going to be left with anything at the end unless you are under mileage and getting out early will always cost you money - decreasing the closer you get to the end. New cars always benefit from better finance rates as are subsidised by the manufacturer. This often makes 1-2 year old cars more expensive to finance than just buying brand new. Where are you finding the 3% rates? I've not seen these anywhere other than new cars. Used cars you will be 7-10% at least. Any chance you could share some of the finance companies you've used (if different to the ones the manufacturer offers through the dealer)?

[@king-gamer7928]

I work for Steven Eagell we have 0% apr on used and new cars currently, but normally our APR rates are 3.9% on used cars.

[@paulkane-buyersblueprint2294]

Bank rate vary a bit from new cars to used cars. See this link to BOA below. www.bankofamerica.com/auto-loans/auto-loan-rates/ Choose a specific bank and add car loan rate to the google search and BOOM! Otherwise you will be inundated by sub prime ads with rates up to 30%!! You need to know the lender 'base rate' AND what your credit is like (hopefully good) in order to demand the best rate from the dealer. Or tell them you will go direct to your bank yourself. Remember that dealers will try to mark up rates in order to make an income bonus on you. The only way to dodge that is to know the bank rates and your credit strength... Also, banks have a 'rule of 10' so the older the car the shorter the term. And when the term gets over 5 years they will bump the rate a point or two. Newer than 5 year old cars on

[@anish11215]

Waited a while for this!

[@rossmurrayfam1568]

very informative thankyouu

[@joelluv]

Weren’t you supposed to upload this Sunday?

[@nickw8676]

Great advice, thanks!

[@cameronwilliams6772]

Can I just ask like putting the finance on the svj and then selling it on like ‘some people do’ to make money, how they do it? Due to my understanding being you can’t sell vehicles privately, and not many garages I know offer cash for vehicles anymore, they normally do part exchange to clear? (Is this different for more expensive cars?)

[@rantsbantsreviews3953]

Higher Purchase or Hire Purchase? Haha! Overall great insight into the world of car ownership! Worth mentioning dealers often reduce the purchase price of vehicles if you opt for the finance they provide as they're making great commission per sign up!

[@mehmetkuntas5643]

Hello I want to ask something when you not pay finance if i sale or take car other country what happens he put ccj or any other penalty? Please answer

[@YouTubeDunk]

Hi Anish, great video! I have a PCP, how often should you exchange an old vehicle for a new? Is it every 3 years? also, should I buy my PCP outright at the end of my agreed term and sell it myself privately, would I get more money for this than exchanging for another vehicle with the dealer?

[@paulkane-buyersblueprint2294]

Dealer trade price is always lower than private sale price. All depends on the value of your time. But dont fall into the trap of continuing to put the negative equity into the new loan. You will be VERY under water if you ever need to sell early or the car is written off. Always put $ down to equal tax and negative from the trade. This will keep you much safer in the term of your loan. Also make sure your PCP is an open one where you can get out any time you want and you are open to how you want to do it (ie sell privately...) otherwise you are stuck taking their crappy offer at the end of the term (or earlier...) Hope that helps.

[@unavailable9225]

Let’s say I’m buying a car it’s £38,989 and the cash deposit I do is £1000 and the monthly pay is £726 around how much would the balloon cost be

[@thooney2934]

Around 40 quid

[@T333trading]

Ok so at the end of the PCP contact what if the price of the car goes up? do you pay the increased price or do they owe you money like the difference between them? example; so the starting of the PCP contact there is a £4000 end of contact payment then near the ending they say actually your car has gone up in value so instead of £4000, its gone up by £1000 would they just give you the difference or would have to pay the £4000 is the possible, am I making this a unicorn PCP contact I'm confused

[@rickysingh5641]

sheek ty any equity is yours to use as a deposit for the next car

[@foysali8043]

Great stuff Anish.. very clear and informative.

[@BEN-bx2cz]

Do you just do property now or do you still do some trading?

[@fayahmad9063]

You literally didn’t answer the best way to finance a car. Is it bank loan? Then sell the car when you’re ready

[@delta_tango7974]

Excellent video. Thanks mate.

[@rakibali7690]

So when you buy a car which option do you use

[@c3rtv239]

I personal lease as I can just hand back a brand new car after a year without any negative equity etc. Yes there are cons to it such as when it comes to returning the car, most are very thorough with inspections and can end up coasting you a decent amount. However, it’s the flexibility that entices me over worrying interest and returning fees on a PCP

[@BiscuitOath]

That's the only negative of leasing I can see. The monthly and deposit are usually a lot lower. I don't know why Anish reckons its only worthwhile for businesses. I understand it is especially worthwhile for them as its tax deductible, but personal leases are still cheaper than PCP's.

[@MSH4HID]

Very informative video for beginners. You forgot to Mention one major thing- end of contract charges. These companies Sting people with charges when the vehicle is returned back I.e Kerbed Alloys etc. So take good care of the car and be prepared to pay charges for the Damage. On a personal note, I’m looking to buy a hurracan/gallardo. As these cars warranties have now expired - if they where financed would it cover catastrophic engine failures

[@Robmac90]

Can you provide some light on the size of the balloon options, example can you expect balloon to be 40% of the cars value and how does the percentage differ per class of car (supercar/prestige/everyday)?

[@jamesdean6451]

The balloon payment is purely based on the minimum the finance company expects the car to be worth. This will vary from car to car as depreciation differs for each. They have to look at a worst case scenario that the customer just hands the car back at the end of the term. They need to guarantee they get their money back on the car if that happens.

[@andrewmiles6903]

Hi In my past experience HP is best you get a fixed flat rate yes 3% i get or even 2.9% you pay of over 36 months or 48 months you know what interest you pay and you pay of the whole amount car is yours end of the term. But PCP with a balloon payment allows you to get in to a more expensive car with same monthly payment as HP as you can offset a lump of money to the end my concern is the interest is nearly double on the balloon payment, and they take a lot of the interest of the full term out over the first 18 months ware as HP is fixed payment equal each month pay of halfway through only pay half the interest. so my advice is always work out the total interest to be paid if taken out for the full term but expect to loose a lot of the interest upfront in a PCP. for me HP has allways worked best.

[@unicatul1]

Can you please tell me what is HP ??

[@nipunpatel5395]

Really good and clear explanation bro

[@Sahibsinghchohan]

Hey anish, another great video! Do you recommend any car financing brokers??

[@fffmmm2233]

Hi nish Would it not be difficult to sell if loan on car ? And u dont own all of it Also are there any exit fees ?

[@fukjabi]

Fff Mmm depends on your loan terms if you owe less than what the car is worth you should be able to exit no problem

[@mohammedawais8699]

Great advice bro 💯👍

[@joelluv]

Do you get your cars on pcp or hp or lease

[@ashleymiller3128]

Is canada drives a good company to go through plesse help!! Anyone I need to know before I sign I had bad credit but they got me on a finance plan for a 2015 Chrysler 200s asking $18,999

[@paulkane-buyersblueprint2294]

They are essentially an on line sub prime lender. 99% of their business is derived from their sub prime leads. Work on your credit. You say you 'had' bad credit? In canada used prime rates are 4.99%. What rates are they quoting you? Make sure anything you sign with them is "open". But I'm sure if you read the fine print it will cost you a fortune to exit early OR have to refinance with them again in the future to dodge some fees. I'm in Canada and if you haven't signed, I can point you in the right (other) direction...

[@dannytorrez1800]

If a used car price is 14,000, how much do I need to put down to have monthly payments of let's say 350 a month?

[@paulkane-buyersblueprint2294]

Need more info! banks have shorter terms for older cars. So if the car you are looking at is ,say, 5 years old then you can only get a 5 year loan. (the two number cant be more than 10, called the rule of 10...) then you need to know your rate. but if you are paying , say, 5% then your 14K car will only have payments of 265... I would go get a 'finance calculator' this is gold for dealing with dealers so you know if they are margening your rate.

[@ru6886]

Thanks for explaining what a balloon payment is I never understood these big words

[@rickysingh5641]

R U the optional final payment is the default option. You need to make a decision retain part ex at a dealer or hand back to the finance company

[@danbruno5945]

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.😂💯

[@DeeJay00001]

You didn't mention CS (Conditional sale), everywhere I have looked it sound very much like hire purchase, can this be confirmed please. Great video otherwise.

[@NobleGangsta13]

Very good video, big fan of your content, will head over to the site now.

[@Arch_Angel_Micheal]

Great vid thanks

[@lj6717]

Can you sell a car thats still got finance owed on it?

[@rickysingh5641]

L J You can part exchange at a dealer you will need the settlement figure and an appraisal done on your vehicle. This will determine whether there is an equity in your car usually at the end of a pcp you should hopefully have some positive equity

[@paulkane-buyersblueprint2294]

YES. Call your bank and get the buyout. Check the market on your EXACT car and see where you are at. Private sale or dealer trade both options depending on wheat the dealer offers you, you may choose to invest the time to sell private.

[@wololo4761]

Thinking of leasing a car for my company. Can you explain for us the implications of IFRS 16 on corporation tax? Is the tax charge calculated in accordance with the new accounting standard, or are we now seeing significant deferred tax balances as a result?

[@madgamer7555]

Am I right In saying HP = your car isn’t yours at end so you can’t use it in a deal to get another car ... whereas PCP = if you pay end payment, you can keep the car and use it in part exchange if you want a new car?

[@Ghvxddf]

HP is a straightforward way to do it. So you own the car and you're just paying it off over whatever term you agreed. Hire Purchase you can do upto 60 months, but the longer it goes on for the more interest you'll pay. PCP goes upto a max of 48 months but you down own the car technically until you've paid the balloon payment. So you can either hand it back in after the term, pay the balloon payment to keep the car or swap for something else.

[@frostwise87]

fantastic thanks

[@mikelarey8738]

Shots fired at Shemee150

[@ianmason3040]

Mike Larey - No probably TGE

[@lloydbanks2k6]

Im confused 20 views is this unlisted?

[@AnishvinOfficial]

It was yes

[@lloydbanks2k6]

@@AnishvinOfficial ah lol was a good vid thanks

[@jamesdean6451]

Also leasing cars within a business is not what it used to be. There is now a tax liability for the user unless the vehicle is clearly commercial like a van. If you only want that specific car for 2-3 years then always best to compare the lease to PCP cost. Neither is better or worse proposition other than PCP you have more flexibility to end early (most likely having to pay off negative equity). Leasing can be more tricky of you want to add a private number plate for example. Also parking/speeding tickets etc all get sent to the leasing company and they will often charge you an admin fee for forwarding on. PCP when you buy will take in a part exchange, if you lease a car you can't part ex your current car so have to sell privately or webuyanycar.com

[@williama-d6]

good video

[@tothepointreviews9675]

hes talking about shmeee

[@sheakrahman4200]

Thank you very much I’m only 17 I didn’t know nothing about properties I really wanted to work as a property investor and you really help me I watch all your videos thank you . Can get reply back please

[@danbruno5945]

Wake up and save your money every month 🙏 Reliable £1500 car like a VW Passat TDI 2007-2010 won't let you down, Car finance means less money for you EVERY SINGLE MONTH just to impress a person at a stoplight you will never meet😂🙈🙈🙈

[@CharlesCampo1]

I think the fact that you are technically saying that financing allows you to "afford more than you can afford" is very dangerous advice, and very stupid.

[@paulkane-buyersblueprint2294]

That is exactly what a finance is doing. Enabling one to get something before they have saved the cash to buy it outright. With 80% of the population living check to check, I'm not sure there are enough 1000 dollar cars to go around!

[@ThaRealYoku]

Really helpful, AV. Thanks

[@aaronmerjil6948]

Cant just own a phone conpany here bud

[@rk1ace]

FINALLY

[@andrewmclaughlin6328]

💙Hey ANISHVIN 💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙💙

[@SHEZXP123]

Option where interest isn't involved because of religious beliefs

[@harambae7014]

Pay cash.

[@adamdin7625]

Earning around 220k per year. Do you think it’s reasonable to purchase a car worth 100k? Thinking of Porsche 911 992🤔 unsure ....

[@ashs9960]

Hi Anish, sent you a DM on Insta. Would be grateful if you could have a look. Thanks

[@zzz-xj3lu]

for dummies??😬fr 😟

[@AnishvinOfficial]

It’s just meant to be a play on the famous books “for dummies”

[@mehmetkuntas5643]

Hello I want to ask something when you not pay finance if i sale or take car other country what happens he put ccj or any other penalty? Please answer

[@mehmetkuntas5643]

Hello I want to ask something when you not pay finance if i sale or take car other country what happens he put ccj or any other penalty? Please answer