Car Buying Mistakes You Should Avoid! (Balloon, Credit profile, Budget etc)

Car buying comes with a lot of paperwork and unfamiliar terminology. If you are not careful or perhaps don't know exactly what you are doing, you might end signing your life away with a raw deal.
Mistakes to avoid
1. Not building a good credit profile before applying for a car loan.
2. Cheapest cars are not always the best cars to buy.
3. Avoid balloon/residual payment if you don't have a plan to cater for it.
4. Don't be too flexible, know your budget.

[@valanceo2166]

A family member of mine passed away in an accident driving a Kwid. Car crumpled up like a coca-cola can. So I agree with you not to buy a cheap car. Rather choose public transport or a good pre-owned car.

[@denali6935]

If you want a strong small car the polo is a better choice my old 9n3 got rear ended and didn’t need anything more than a bumper cover lol hatch door was still intact unlike other cheap cars here cough cough* Nissan note*

[@abubakarimahyoro]

Anyone can die in any car in an accident as long as you are driving rashly and in unrecommended speeds... So drive carefully even if you are inside a Polo or Mercedes S class so as to be safe!

[@LifeGuru16]

@@abubakarimahyoro true but some cars are just more riskier

[@gregory3768]

True. Also be careful of Scammers like EarnaCar kzbin.info/www/bejne/o4vcnXeZZt2cfpY

[@user-ww5qw8jd3b]

Cheap or poor quality??

[@sizakelehlanze4730]

I love the genuineness of this and I really hope he doesn't get approached by car brands to start lying to us in exchange for money.

[@vincentmotonya2859]

It's only a matter of time

[@gregory3768]

Awesome. Careful of Scammers like EarnaCar kzbin.info/www/bejne/o4vcnXeZZt2cfpY

[@kiritlemaila2350]

We know his first videos we will know 😂 he's bought now lol but i trust HIM I dont think he'd even take such offer

[@mziwamadodambedu754]

He already has a deal with Naked Insurance 😅

[@zinesobanesigonya9196]

This is financial literacy on another level😂👌🏾 thank you for your brutal honesty

[@nkuluzankululeko3729]

😂😂😂

[@itzthabiso_m]

4:03 he had me when he said the kwid is beyond repair even if it got hit by a Shoprite trolley😭😭😭😂😂😂😂

[@joshuawilliams6889]

I love the humor he uses in his videos and he keeps it simple enough for you to understand. Thanks.

[@gregory3768]

Awesome kzbin.info/www/bejne/o4vcnXeZZt2cfpY

[@Mzanz]

Thanx so much for sharing your knowledge with us. As a first time buyer, I found your videos very handy. Bought a brand new car on finance - negotiated R20 000 discount on full price, asked for zero charge on admin, negotiated for my interest rate to be lowered by 1%. Thanx so much!!! Greatly appreciate all your content. Edit: you are right, dealership tried to confuse me with balloon and installment adjustments. But I stuck to discussing onlu the car full price until we reached a good deal.

[@_therealmadam.phasha]

did you get a discount tho ?

[@calmingsouds5502]

@@_therealmadam.phasha I got everything that I negotiated for. But it took time. 3 days to be exact.

[@nidnarg21]

We're in the process of buying a car. Not our first car but the first new car from a dealership, we were completely clueless about our ability to negotiate. We really appreciate your tips on how to maximize our position. Thank you 🙌🏼

[@wespeakthetruthhere7413]

The only reason why I would take a car with a residual is because, I want to buy a car that I won’t mind driving for the next 10 years (if it gets to that). A car that would still be appropriate whether I get a family within that space or remain single. I don’t want a car that’s gonna start looking ugly as new models come through. A lot can happen within 6 years as far as a person’s financial position is concerned. I mean you can get a promotion, change jobs for the better etc. My advise is, if you took that balloon start saving for it immediately. A measly R500 per month in an interest earning account fixed for 6 years can amount to a lot at the end of that period. Save according to your end goal though. So, you are definitely right when you say, you must be somebody who really knows what they are doing, be educated in everything you do. I mean it’s easy to find yourself in another financial predicament at the end of the car loan period, if you didn’t know what you were doing. Next thing you are taking another loan to pay a loan, and before you know it you’ve paid double of triple the original purchase price of the vehicle.

[@leeroyndlovu7983]

For those considering a balloon - please note that the ballon is also subject to interest. So that 30k would be 30k + interest

[@kgothatsoramokgopa2971]

Gosh an F&I at a dealership told me there's no interest

[@hlangothindlela7517]

@@kgothatsoramokgopa2971 Interest is added when you finance the balloon amount at the end of your initial loan.

[@kgothatsoramokgopa2971]

@@hlangothindlela7517 so if I don't finance it, then there's no interest added?

[@hlangothindlela7517]

@@kgothatsoramokgopa2971 yes.

[@siyabongamngomezulu9743]

😮😮😮

[@sigondemedia6193]

Lol the kwid can become beyond repair, even though it collides with a Shoprite Trolley. Keep on giving us great insight about hidden issues in buying cars bro

[@tshilidzimagada4494]

Thank you man didn’t understand balloon payment until now the way you explained it was perfect. 🔥🙌🏿 Now I know better

[@_therealmadam.phasha]

i also didnt, people make it sound so difficult

[@reagang8038]

When I purchased my car, I took a balloon payment. My salary increased the next year and I started making payments to my balloon payment monthly. My balloon payment should be done b4 my car loan period. At the time I didn't know much about it. Lessons learned

[@refentsematthewsmalatjie6961]

Interesting perspective

[@sirbastiangezwind3599]

This sounds smart!

[@zinhlemlangeni01]

Don’t take credit if you are not ready, don’t take unnecessary credit to build credit score. You’ll regret it because it’s a very serious commitment and when you miss payments, it ruins your credit score. I don’t want to lie

[@percymoila4266]

Man I love your content, I wish I’d know about this 6 years ago, now I’m in debts I don’t even have a clue how to get out. Now I watch your videos with regrets but also learning a lot out of them. How I wish

[@sifisoeric]

Lol not me seeing this today, almost got dribbled by a dealer. Made everything over the phone, car is R190000 but when the contract from the bank arrived the car was R230000 plus a Ballon, which means I'll be paying more than R300000 in 72 months for a 190k car. I told them to go back to the original price. They tried to explain what happened, but I stood by my word until a new contract was done with no 25% balloon

[@_therealmadam.phasha]

what happened?

[@balungilezulu9752]

I'm glad I found this Chanel before purchasing my first car.

[@Ayo_its_Austin]

Awe🤙🏾. Also, with the prices of the car, including their safety ratings from the "Euro NCAP" and "AA RSA" would be great. I think people would appreciate that.

[@CLOUDII_SA]

I just found your channel today and I'm honestly loving your content for real.

[@joasmasekela6742]

The disrespect on Kwid is on another level...😂😂🤣🤣🔥🔥

[@buhlemseleku9400]

I love your content! It’s honest, straight forward and very educational. Thank you 😊

[@lesedimmotong7147]

You forget to say funny

[@ziyandashange5699]

This was so informative!!! Didn't fully understand the balloon payment until now! Thank you!

[@balungilezulu9752]

Me too

[@siphoalfredngwenya4629]

Siyabonga Bafo for this useful financial knowledge in the most palatable manner possible. It's easy to digest and very much applicable. 🙏🏽

[@emmanuelmushaniki3468]

This is beautiful brother. Very informative. Would appreciate advice on buying pre-owned cars as well.

[@MuziSambo]

I will work on that👍🏽

[@danielzhou8155]

@@MuziSambo please do bro..

[@carolinerambau8789]

Discovering your channel was the best thing that happened to me today 🤣🤣❤️ love it.

[@sir_will_iam]

My best friend's first car was a qwid. She knows from experience that his jokes are actually facts.😂

[@siyabonga9662]

Another great video 🔥. Informative for us who've just graduated and started work.

[@amenmoipushi8821]

Hear hear!

[@ThaboMashiloane]

Totally agree abiut what you said about Kwid vs Used car. To the Kwid add that ugly Suzuki Espresso. Goodness me!! 😱😱 On the credit record, totally spot on. I wouldnt take Balloon of more than 15% (if I really, really have to) and will only do it on brands with known resalve value where you can compare with current cars of that age and mileage. Good resale value can help you settle your balance. So for me I would say people who want to take balloon should only take upto max 50% of the estimated value of the car after 5 or 6 years. For example, the previous 3 series of 2016 goes for around R330k woth around 100 000km. So thats info you can use if you buying the cirrent gen 3 series. So dont go above lets say R100k on balloon to be safe. Thats how I see it.

[@phililezulu3213]

Also note that the balloon portion accumulates interest during the 5 yrs period. So u won't just pay R30k, you will pay R30K plus interest

[@sanelebuthelezi3691]

No it doesn't accumulate interest....it only start to have interest when you finance the car again..

[@phililezulu3213]

@@sanelebuthelezi3691 people need to be vigilant coz this is how banks catch people out. Any car finance with a balloon payment has a higher interest rate compared to a car finance after the deposit has been paid. The bank covers themselves by charging you more interest, just in case you default on payment. No one will trust u to have R30k at the end of a loan period when you didn't have one to start off with in the beginning.

[@sanelebuthelezi3691]

Philile Zulu wat I'm saying I've done it and still doing it...Ballon doesn't accumulate interest during the period you paying for the car in those 5 yrs...Also interest rate can be negotiated if you know your story and you've worked hard for your credit score...Like me I don't take anything above prime 😉...

[@kentsesetshedi8386]

@@sanelebuthelezi3691 how does 1 negotiate and how much is ur credit score

[@sanelebuthelezi3691]

@@kentsesetshedi8386 For me because I do have an idea of what is happening from applying for finance to signing and taking delivery I negotiate even the price of the car you can negotiate even the extras and Delivery fee....Some people just sign even for VAP (value added products)that they don't know about.

[@y2a654]

You tell the truth only Mr Sambo! thanks you for keeping us aware.

[@kgariathalia2257]

❤️ for balloon payment is good only if u don't afford the car, it's just extending the months of your installment. The importance of meeting the good person to assist u through out at the garage ✊. If the saleman is not transparent move to the next garage.

[@don_the_reaper8863]

I swear your videos will help me in the future cos I had no knowledge some important things when buying a car.. big ups bro

[@epicmadness4836]

I like your content this information they dont teach in schools thanks man keep doing what you doing

[@oskidocolor3065]

THANK YOU for imparting this knowledge, coz yey!! the pitfalls are endless. Especially the credit score thing. Very insightful. Job Well Done, Muzi. 👌🏾

[@MuziSambo]

Glad it was helpful!

[@maandaramulifho1562]

Very insightful bro, I didn't even know what Balloon payment entails ffs 😭👍🏿

[@masedi61]

"Upstairs Bathi balloon in it! Then you are done to be finished"😂😂😂🔥🔥🔥🔥🔥

[@sphiwe.maphosa]

one of your best videos bro, the info here is priceless 🙏🏾

[@ibizee7060990]

Love the snide little remarks like the KWID vs Trolley

[@asadndlovu01]

We need you as a lecturer at UKZN Medical school! This is a Very important Course.

[@mochox]

Excellent advice Bru! Basic common sense...which is not so common. Ur "renault kwid and shoprite trolley" comment had me in stitches! May u grow in leaps and bounds

[@albydedi9148]

Bro, this is the best advice ever. Keep it up🔥

[@Sira_MasterOfNone]

Informative video🔥🔥 but the Kwid and trolley 🛒 joke though 🤣🤣🤣🤣🤣

[@mdumiseninene1660]

I felt that 😂😂😂

[@siyambukavazi4489]

Informative Video bro✊ Kindly do Bank car finance and dealership car finance

[@nombinintlahla8325]

Goodness me, "The 8" is super beautiful both interior and exterior ... I hope my inspiration will land somewhere some day🤧

[@cozy4446]

I like how you showed the Toyota GR when you said “some cars are just overhyped”😂

[@siyabongakhoza1325]

😃 it's easy to take the credit profile thing for granted. Thanks for the video boy

[@maitecodlinnekgomokaboya5469]

You gained a new follower. No cars as yet but I love the content.

[@khanyomelitafa2447]

love your advice. again I appreciate this channel so much. please explain the difference between a warranty, service and maintenance plan.. 🙏 also please review the Nissan Qashqai, Mazda cx3, cx30 and Toyota Rav4 when you have time. cost of ownership included. 🙏

[@bpt13242]

VERY VERY INFORMATIVE.dankie hangwe,dankie habedi,dankie hararo👌👍

[@mrg9183]

🤣 i like the dealer's voice!!! ...thank you for the sound advice.

[@murendeniralulimi33]

My brother the info you gave us is so much Important thanks

[@MuziSambo]

My pleasure

[@daphneymashao]

Very insightful! I think fixed interest rate is also a very important thing to consider..

[@buhlemoyo197]

Wow! Very informative! I wish I knew all this before I bought my car.

[@onlykaygee]

Safer in a Kwid than a Quantum?! Lmao. Have you seen how they drive or their deeply penetrating accidents? I'll just avoid the shopping trolley, thanks! No, I don't drive a Kwid. Great pub argument starter though. Lol Great info.

[@tshepotshabalala3528]

I love this 850i I've driven one in the exact same spec wasn't mine but still mad fun

[@david_ramoraswi1711]

Loool, had to subscribe cox the content is amazing.glad I bumped into this video as am about to buy my first car

[@mjeyngubane]

I have more information on how am I going to buy a car 🚗 now because of this guy

[@delanocoerecius3827]

Informative content as usual. Do a video on buying a car far from where you stay

[@bernardsehlako8376]

Show us how to negotiate for interest. How much the bank charges and howmuch does the dealership add in order to make up the final number. And what's the max that they can charge for interest.

[@molokoconfidence7053]

Some of us are learning from you my guy. keep it up.✌✌✌✌

[@DawudTVza]

I absolutely love this content 🔥🔥

[@lenyoraa2]

Credit is like drugs, very addictive and most people need counselling to recover from it but go ahead, create debt trying to get a high credit score.

[@lutendondou6928]

I learn something new on each video my guy, thanks

[@thabile6057]

In 2019 , I was earning R45000 and Telkom rejected me for R250 data contract because I had no credit history😅.

[@tinker2054]

So your the friend he's talking about?

[@magasaneemmanuelmashabela1384]

How much are you earning now?

[@knowledgembeuserua3407]

Wanting People to be in DEBT to have a Good credit score is Dumb

[@Asanda1000]

not knowing how to use debt to your advantage is dumb...

[@xolani_mkhwanazi]

What profession are u doing?

[@gift9833]

Another great video🔥🔥🔥very important information

[@lubisiwhiterainayanda7999]

Big up bro mfo ka Sambo uy one la kule level le mfo , nice clean content and a touch of brutal honesty 🙏💯😎🫶🫶🤟

[@thobilemonakali7117]

🎈🎈🎈 happy Zalwa day Buti, decided to post here since this is ma favourite Vido okwa ngoku

[@peterthapelomatlhasi644]

Your reviews kills me🤣🤣🤣🤣🤣🤣🤣🤣🔥🔥🔥🔥🔥🔥🔥🔥keep it up bro

[@Sira_MasterOfNone]

Slapped 👋with balloon🎈..😂😂😂😂 Hayi wena 'Men in black' Muzi

[@aphiwehlophe8928]

Wow such an informative and interesting video and such an eye opener tooo I'm in Awe!

[@dave-lubbevanzyl7816]

My man, you are so funny. "If you can't do that, you are screwed. Deeply penetrated." xD Kwid colliding with a shoprite trolley beyond repair!! Funny stuff. Keep it up.

[@hlonni_chelsea6711]

Wow. Thanks brother. The last point 💥💥💥.

[@kabelomotaung4785]

Hectic, good looking out grootman

[@mfundomadondo7864]

Muzi Sir, can you please explain the advantages and disadvantages of by a car cash?

[@englishbyayomajozi1735]

Yes, please!!!

[@thatotsotetsi6921]

You've scores yourself a new fan👏🏾👏🏾👏🏾👌🏿👌🏿

[@azharcassim2795]

Guys. Please don't ever buy clothing on credit. If you can't afford it cash then just leave it. Go to a store where you can afford clothing cash. Seriously, you don't need branded names to prove your worth to anyone. If you can't understand that you will always remain poor and allow the bankers to relax on the beach with the interest you pay them while you slave away at your 9-5 until you're 65! In fact try to avoid credit at all costs. It's an unjust way of lending money yet everyone thinks it's what we should get involved in. Trust me... cash is king! Avoid loans and live with cash. You can save and invest so much more. You will have freedom in your life and if you hate your boss you can just leave because you have NO ball and chain tying you down in the form of credit. Also, learn to be entrepreneurial. The saying knowledge is power is complete BS! It's the APPLICATION of knowledge that equals power and unfortunately not many people get that. So start coming together to create something bigger than yourselves and forget about materialism. You will eventually live free from this crappy system we are groomed to believe makes us successful. I.e Go to school, get a degree, work a 9 to 5, take out a bond and live on credit u till we're retired. Say NO to that shit just like your mama tells you to say NO to drugs....

[@katlehozaddy]

👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽

[@NM-kb3ko]

Sound advice!

[@gumanisiaga6948]

I believe this does not constitute financial advise, more especially the balloon payment aspect. It's just general knowledge, if we broaden it there are many advantages in taking balloon payment when it comes to buying cars, those are never assets to put or invest money on, so balloon is always a way to go. I Infact balloon is not a given, one need to qualify for it.

[@dtl009mp]

I'm forced to be indebted just because I must have a credit profile! That's obsurd.

[@philadyum3574]

I love the jokes 😂🔥the video has great energy

[@lordbahle]

You didn't mention that the Balloon payment is subjected to interest. At the end of the term you pay the 30k + interest. I would say avoid Balloon.

[@nkhumelenimulalo6741]

Never. Thats not true. It is incoporated in your total cost of the loan. U pay fr balloon interest every mnth wen u pay ur mnthly instalment.

[@_therealmadam.phasha]

@@nkhumelenimulalo6741 thats how i understood it as well

[@nkhumelenimulalo6741]

@@_therealmadam.phasha Dont worry he is just missinformed. If u pay and let them allocate the portion of payment towards the baloon it gives u advantage of discounts on ur total cost of baloon. ie if you wer owing 100k and u decide to pay 50k you may end up left with only 30k towards ur bqloon

[@MzakesmanG]

kwaaaks uyang'qeda wena Muzi! hahahaha as I watch the stunning visuals

[@langutelanivembani1038]

You will get your 50k subs soon🔥. I’ll talk to granny. She will arrange it🙌🏻

[@khayelihlesizwe8024]

First time seeing your video Sir but I learned something , thank you

[@lindankosi5836]

Done to be finished😂!!! You did a good job explaining these vultures!!🎉

[@WARFLAMEENTERTAINMENT]

But for students who have graduated they can apply for graduate finance.they don't need to build credit.

[@MuziSambo]

Yeah, I know Wesbank offers graduate finance but I'm not sure about the other lenders though.

[@TheCarFan_SA]

Well Said Buti. Siyabonga 👏

[@ellahnokane4536]

The last tip right there 👌🏽

[@maxlodewyk_na]

You’re answering important questions.

[@khanyisonyangaza9201]

4:01 that was brutal 😤😂 but informative 🔥

[@buhlesihlali]

The shade about Kwid though 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🙈

[@clementborien6167]

Very insightful with awesome visuals. Thanks for sharing 👌👌

[@Stecodj]

Great video . Really good humor too

[@khulekanicele2327]

ngyabonga mfanakithi ngolwazi... awusho i-Haval ngabe imoto ekahle ukwithenga, uthini umbono wakho? ngendaba ye- balloon and trade-in, i-value yayo ikusiphi isimo ngolakho ulwazi ayehli ngokushesha... ngyabona ulwazi osinika lona alucoshwa endleleni. ngibuza ngoba aibo ei! iHaval H6 ne Julion inokungiheha okuyismanga... kanti nanku "noHaval must fall" umi ngenhla.

[@busisiwewendykiva937]

I really want to know

[@rendi__rm]

Very informative! Brilliant reenactment at 6:30 😂🤣🤣🤣

[@MuziSambo]

😁

[@NjabuloMshengu-yo4qw]

" that how you get slapped with a ballon on of your face "😂😂

[@tebatsomampane9727]

🤣🤣 "it could be beyond repair even if it collided with a shoprite trolley"

[@slysken.4010]

please do a VW video on car safety and security

[@ntselelentse9962]

I'm one of the first time car buyer who fell victim to that balloon payment.....I was never even made aware by the car dealership. ...eish

[@kgomotsomonye9136]

Bro how do you even think of the things you say😂😂😂 the sarcasm is definately not of this world. However, this turns out to be the best car reviewing channel here in South Africa.

[@mukhethwamauba6530]

Informative, thanks...Kwid crash with Shoprite trolley 🤣🤣🤣

[@Sta_Credit]

I learnt alot. Thanks. I really enjoy your content