Watch THIS Before Buying a Car! Step-by-Step Vehicle Purchase Agreement Breakdown

[@QueendomCome621]

This is exhausting...lol. I hate the car buying process, which is why I come to the dealership with financing already secured and decline all the extra crap they try to sell to me.

[@scottr2706]

Having financing lined up is good but not complete. The correct way is to have financing lined up and then allow the dealer F&I manager a chance to arrange better financing. They usually can find better financing. Nothing to lose, take the financing which works best for you.

[@vanessalovespoptarts]

Wtf I decline and they forced it on me

[@cliffco823]

I purchased my first car in '93 and got ripped off so bad. Wish I had YAA back then. Thanks for doing what you do. Hopefully saving others from what I went through.

[@scooby1971]

Same thing happened to me. I got screwed out of $6000 and was lied to when I told them the next day I wanted to cancel the deal. Legally, I had several days to cancel the deal, and they should have honored that. Now, I use sites like this one to help try and avoid these scams.

[@josefmd]

@@scooby1971 I am sure there are ton's of people that got ripped off years ago before the internet with sites/youtube channels like CarEdge. I know I did! I didn't have a clue. The process is now more transparent in modern times. Knowledge is power.

[@ibzrgman9130]

The Problem is.. that their so dishonest and there is so many ways they can take you that unless you work in the field or have inside knowledge of how it all works it's really hard to get a good deal and not get taken.. I've been taken too yrs ago, more then once.. Their thieves

[@WilliamJSisti]

Last time I bought a car I would bring a spreadsheet with all the APR calculations setup so I could quickly double check any dealer math. I think my spread sheet came within $0.25 of the bank documents. Quick and easy way to keep them honest.

[@2FAST27]

Do you have a pdf of that spreadsheet you can email?

[@AvengedAggressively]

I'd be interested in using it also!

[@tirrellmoore6223]

Same!

[@WilliamJSisti]

Strange I thought I posted a link last night. I’ll repost later. But google the payment (PMNT) function in excel or google sheets.

[@mike-sk2li]

I purchased my vehicle for almost 20k less then new sale price. It had 8k miles on it. The original owner got the loan and drove off the lot. He then decided to travel the country in his towed RV. The bank decided not to finance him and he was told to return the vehicle 😂. He finished his cross country trip and returned it. So now the 78k truck is in the 58k range. Only a very rich or stupid person would ever buying new.

[@joelado]

This was so valuable. My eyes would cross everytime I would look at this stuff. I've hated this so much that for the past 30 years I've purchased my cars with cash. I need a new used car (new to me) and I need to finance it this time. I've been totally dreading it. After watching this video I feel so much better about the process. Thank you.

[@mrs.kpbailey]

I’m glad I didn’t cut class today because I needed this! Thank you!

[@donhin-d5j]

Your leaving out the part where the banks cheat you out of the credit you were approved for 12 usc 1431 . Also your talking about a loan that never occurred! Read 12 cfr 1026.13 . The hint is the first sentence in most contracts, “ you may purchase the vehicle with CASH or on CREDIT” . Also read the credit insurance disclosure, It takes understanding the banking law and accounting to really understand the contract! No one should ever come out of pocket for a “consumer credit transaction” …

[@mwtkd1]

I feel victim to predatory lending when I was 21 years old. I wished you guys were making videos back then.

[@MR3DDev]

Here is a magical secret thing to pay less money on a financed car. You can pay it way before the loan expires. So you can have whatever amount of interest at the end of the life of the loan, you are not going to pay that because you should pay your loan early and not give money away to banks :)

[@Jazzmin554]

Nice video ❤ I just financed my new Camry after so much stress first was the money then is was paystubs and bank statements which I had to pay a vendor online

[@Jazzmin554]

Deels cafe

[@Jazzmin554]

On I.g

[@zadokisrael9195]

The buyer (drawee) issues a purchase order and the seller (drawer) issues a invoice bill, of exchange. A bill of exchange should be drawn by the seller (drawer) on the buyer (drawee) of goods or services sold and accepted by the such buyer (drawee). Pay to the order of (buyer) is a form of negotiation, drawn by the seller (drawer) that has to be accepted by the buyer (drawee). The Note that is prepared by a PAYING AGENT, is a Substitute for Cash that belongs to the indorser, and it paid for Vehicle. So much for the Truth in Lending "ACT."

[@engineeringoyster6243]

You say that many people are unfamiliar with how interest works. How do you overcome that barrier? If they are surprised by the concept of interest, that is a pretty clear indication that they are naive on all financial topics. It is unreasonable to expect an F&I Manager to tutor them in 5 minutes on a topic that requires weeks in a quarter long class on consumer financial topics.

[@pware9643]

Carmax and Carvana stock is crashing today big time... cheaper used cars coming :))

[@adrienchan2097]

New one better?

[@VictoriumGaming]

This didn't age well lol

[@jimmulderig743]

She is the best. So much car knowledge.

[@stephenfiore9960]

…@…time….9:15….match long sales contract (bank contract) $ amount to buyers order (ie purchase order) amount $. All found at the end of each document

[@tonyb023]

The banks pay interest not us. The bank is the borrower, you are the lender.

[@wmweeza]

This was helpful, thanks Kimberly and Zach! I'm buying my first car in January and I'm a bit nervous...but spending my time now learning

[@simryusom8811]

Thank you 🙏🙏🙏 I reserved a 2022 Toyota Cross LE and it schedule to arrive in 2week🤗

[@YogeshChampaneri]

May I ask. How much out the door you are paying?

[@Jennifer_Christine]

And you did this with all the steps correct

[@leroywatermelon4025]

I have never financed a car purchase. I either wrote a check or paid cash. You would be surprised how cheap you can buy a new car when you purchase outright.

[@supertoshaful]

Why didn’t the down payment come off the price before financing?

[@jordans6896]

Not boring! So greatful for this info!

[@stephenfiore9960]

…@ ….9:15……Take long Contract and match it to Buyers order price

[@michaelbauer6126]

Zach, another great and informative video. It was concise, precise, and right on target. Kim made all the bullet points understandable while being fun while watching. She’s one smart, caring woman and certainly not hard to look at. Keep up the great work…please!

[@SoCalBIGmike]

I have such a crush on Kimberly! Don't know how I found this channel, but great work guys.

[@ChicoDaUno]

Love this channel. It’s so helpful.

[@msunlearn2relearn]

CONtract!! For sure!! R.I.A=RETAIL INSTALLMENT AGREEMENT!! EVERYYYY DEALERSHIP ENGAGES IN FRAUD BY NOT GIVING FULL DISCLOSURE/VIOLATING T.I.L.A!! You should NOT be putting down CASH on a CREDIT (Financing) Transaction and They ALL KNOW IT!!

[@bigcurt011]

You’re correct according to 15 usc 1605

[@charliecreek1112]

What if I’m going to pay cash does the finance rigmarole matter?

[@anabonilla7785]

This is a great video!!! Thanks guys.

[@Retiredmco]

Ms Kimberly and Zach love this important video!!

[@Mammak05]

Is there a video just like this, only breaking down a lease contract instead? And reverse that, explain like i am a toddler, about exchanging my lease if i am not happy 6 months later.

[@LAdams-gn1xe]

Can we cancel the extra items we didn’t know we were buying even if it’s been 6 months?! 😩

[@shanecorby2]

I'm not understanding why the "Total of Payments" box is different than the "Total Sale Price" box.

[@CarEdge]

Shane the total of payments box includes the interest on the loan. All the best, Ray

[@angelaperagine9041]

The total sales price is the total of your payments plus your down payment. Every dollar you would have into the car (if you do not pay it off early).

[@annpowell4147]

Something is wrong here. If the down payment was paid to the dealership it's not supposed to be added it's should be subtracted this example is incorrect the $2500 should be minus from the agreed sales price.

[@danielm8213]

That's what I was seeing as well. It looked to me like the DP was added instead of subtracted from the price. Something didn't look right to me either.

[@denisedy3472]

if ever the financed charge doesn't add up and I asked for a break down and opt out of the gap fees and other additional stuff they added to it and yet it still doesn't add up to the agreed upon price, can I not go through with the deal and is it ok to walk away from that?

[@TheGamer-eh2uz]

Ok. I got confused on the finance charge .. how do you do this math. 😅

[@unfairsanic5089]

The one that im trown off is the total sale price i thought that it will be down since you put down payment on it

[@josesanchez8037]

Down payment reduces your loan amount. it doesn't reduce the sale price. If your total out the door was 25k, but you put 3k down, your amount financed would be 22k.

[@davidwill7379]

Scenario/ Question: shopping for a new ride from a dealership. Via email (after calls/texting and building a loose relationship with sales staff)I requested (3x) Monroney label, OTD, and dealer invoice from factory. This was on a vehicle that was exactly what I was looking for. After first request, was sent window sticker for a vehicle that was already spoken for. The rest was ignored. Then they said the vehicle I wanted was sold but they had more in transit. One of which was a 98% match to what I wanted but the wrong color. So I made another request for the aforementioned docs for that vehicle. After the second request, I was sent a mocked up purchase agreement with the wrong tax percentage, but full window sticker price, tax, title, docs.and the rest was ignored. Finally after sending them a polite but rather terse email explaining my position, I was told that I don’t pay sale tax for the county where I live in and that they don’t send out the invoice info, but did send me the correct window sticker. They also sent me a text saying the vehicle was in the local rail yard waiting for delivery to the dealership and if I hurried and made a $2K deposit and signed the agreement (for which we never negotiated or agreed upon), then that would hold the vehicle for me because all their other sales people were doing the same thing. I politely thanked them for their time and said adios. Was that the right move and was I expecting too much from a dealership in 2023??

[@csg777ca]

Excellent information, thank you!

[@hilldaron17]

This paper work will be printed in the finance office whether you finance through dealer or third party?

[@Slimmx]

I’m confused. If the total sale price is 32,336.50 and they put down 2500. Shouldn’t the loan be for 29,836.50 not 26,116.23? Like they only put 2500 down not 6k

[@ebukaogbonna7019]

No. The loan is 26K, and then 3k the interest.

[@xoneshotx]

What's requirements do dealers have in presenting the tila? Do they have legal obligation to explain each fee or is that the buyers responsibility? Is the dealer required to provide a hard copy or can it be done through a screen on the desk ?

[@unfairsanic5089]

Thank you im learning alot from this channel

[@Joshuazfix]

Too late but I learned a lesson 😅

[@ceasar_69]

me too! i wish i would have seen last month because damn those 5 'shiny' boxes were right in my face.

[@ericallnight]

This is perfect explanation

[@Ryan-bh3mh]

Don’t forget if interest rates goes up you’re paying more

[@tikax2085]

Really helpful, thank you

[@josephdavid3401]

How about if its a lease? I agreed and signed everything BUT they still need my downpayment and i haven't registered the car (or insured) it under my name. So the car is still in the dealership, and of course they won't let me take it without the full downpayment. But then i have some financial issues and cannot provide the downpayment. And now they're saying i cannot cancel it anymore because the bank approved my loan already 😢. Can i still back out?

[@larrymoens20]

A dealer also charged me $500 separately for a finance fee in addition to the payments.

[@ReadTheBible33]

Yeah...[ I don't know about that crush I have on Kimberly, but man I can't wait to buy a car . I just need 50 hours of practice8 I and 30 hours of studying, and I'll be good!!

[@atkman]

Prepayment question: Is the definition of a penalty charge the same as saving money on the interest of the loan if you decide to pay off the principle early (way before the last payment is due)?

[@scottr2706]

Most auto loans with reputable lenders do not have a pre-payment penalty. If the loan has a pre-payment penalty the penalty will likely be a flat amount. Once the loan is paid off interest payments stop. Interest on a car loan is computed and paid monthly. If you pay off the loan early you pay less overall interest. One smart approach is to pay more each month than the required monthly payment. This pays the loan balance more quickly which results in less interest paid. So, yes, you will not pay as much interest as you would if you had paid off the loan over the full loan period.

[@elvismotorsports]

I only finance at my credit union.

[@darrell3643]

Car contracts! They frost my cookies! Great video, thank you so much!

[@emmaweaning]

Kim is awesome.

[@monique85]

Very good information

[@lawngevity3295]

What if I signed a contract that I still need to take to a loan/lender (credit union, bank, etc.) but haven't had the lender contact my dealer, and I also didn't drive off in the car. Am I still obligated to buy the car?

[@Papolucho702]

Nope. No signatures, no worries.

[@janiesolomon7575]

Are these suppose to be real numbers. Or just made up. Whats that about #'s not matching. Doesnt add up right.

[@tentman4fun]

What is a destination fee

[@CarEdge]

A cost added to the purchase price of a new car to cover the expense of transporting the vehicle from the manufacturer to the dealership.

[@F00ty_editz23]

Man i watched the show many times really appreciate what you guys do but sadly I don't think I flowed all the steps I might have been screwed I will e Mail you my bill of sale then you let me know please Next car I will pay you to buy a car for me I promise

[@lisaromeo8931]

Me too! I need to know clearly why my APR is higher than my already high interest rate. 15.99% interest on loan during pandemic but the APR says 19.99% ... I was screwed but we were desperate for a vehicle after several accidents. I want to find a way out of it to a better rate etc etc

[@stephanierooney7000]

I have a question if i may?

[@ameyrane308]

Is there a way to identify if Rule of 78 is being applied or not to financing contract ?

[@Expressitc]

8:01 I think you got one too many A's in there Zack! :)

[@stephanierooney7000]

So i went to the dealership and picked out a car sat down with a salesman got to the point of asking about a down payment i said im gonna put 0 down the finance manager came and said thats not gonna happen i said write it up and please submit it he did to a few companies came back and said i was denied giving no reason so i called the finance companies got a hold of one and asked why i was denied and and they were confused and said i wasnt denied i was approved and they were waiting on a sales contract. I contacted to dealership and they told me i was wrong and it turned into a back and forth then the finance manager stated he wouldnt send a contract without a down payment even though the finance comapany said they werent requesting a down payment the finance manager stated he couldnt send it without a down payment cause he didnt want it to come down on his head if i left the lot with the car with no down payment can you tell me or give advice on what to do

[@danielm8213]

Walk away from that dealer as fast as you can.

[@derond1133]

Don't understand why your adding the down payment 5k to $29+ instead of subtracting from $29+.

[@YoungerFuthark]

The 29k is the amount financed plus the interest over the life of the loan. The sales price is the amount financed plus the down payment.

[@doralburnett9886]

Thanks

[@devilshockwave23]

Professor kline is hella fine

[@just.bob.j]

If I pay the loan off early, say in half the number of payments... do I still pay all of the finance charge ($3720.27) in the example above...or do I only pay $1860?

[@TwoTecs76]

ask if there is a penalty charge for paying loan debt early! if not! you should be good!

[@colton4064]

Make sure to add any extra payments for “PRINCIPLE ONLY” so you don’t pay extra interest for the month or next

[@scottr2706]

The interest amount shown on the loan documents is the interest amount you will pay if you pay off the loan as agreed over the full term of the loan. The actual interest paid is computed monthly based on the current unpaid loan balance. If, for example, you take a $30,000 loan at 5 percent over 60 months your monthly payment would be $566. The total interest paid would be about $3,970. If you actually paid $666 a month, you would pay off the loan in 50 months and the total interest you would pay would be about $3,296. So you would save about $674 due to paying less interest. If you paid off that loan in 30 months the total interest paid would be about $1,976 and the amount you would pay each month for 30 months would be about $1,066. Use an on-line auto loan calculator.

[@just.bob.j]

@@scottr2706 Thank you

[@johnmackey3937]

@@colton4064 I tried to pay principle only 2x on my current car, when check cleared, I called to get PAY OFF AMOUNT, NOT BALANCE saying I sent a check to pay down the principle and was told the whole check amount went to loan! I had included a handwritten letter saying check is for PRINCIPLE ONLY, didn't matter. I was told to include the letter by a customer service rep at general 800 number!

[@F00ty_editz23]

Just hire thees guys do what they tell you pay them or pay that slick dealer I will never buy alone I just bought a Pilot I know is not mush but maybe I over paid by 1500 bucks At first they want 12 present then after I want to leave dropped to 6 present

[@YoungerFuthark]

Where does the trade-in value go? Is it considered part of the down payment?

[@yolome2368]

Yes I would like to know the answer to this question. I'm actually buying a car now and I don't see my down payment on the itemized list.

[@p.heaven7914]

Facts. I wish this could be answered. I’m close to buy one.

[@YoungerFuthark]

The trade-in value is deducted from the price of the car, but it is not listed as a down payment. It is essentially the same though.

[@islandehawaii]

Do you really recommend 'Gap insurance'? I know what it is, but I surely declined it on my last purchase.

[@iristinajohnson8887]

After purchasing my car I found out that the first 1 page paperwork that was printed out has my final price. Then after signing the paperwork that was printed out has several pages is another price. and the financing company is my credit union I got the copy print out from them for my own records, that buying price was different. Price example 1 page 15, 000 salesperson told me 1 page print out as well 2 page 26, 000 dealership several pages print out. 3 page 17, 000 financing companyAfter purchasing my car I found out that the first 1 page paperwork that was printed out has my final price. Then after signing the paperwork that was printed out has several pages is another price. and the financing company is my credit union I got the copy print out from them for my own records, that buying price was different. Price example 1 page 15, 000 salesperson told me 1 page print out as well 2 page 26, 000 dealership several pages print out. 3 page 17, 000 financing company

[@honestabe1940]

HUH?

[@PuJolsLol]

I came ;) for the GILF!

[@progress8898]

Why didn’t you give the whole truth and lending facts⁉️

[@rjmendoza]

Read read read!

[@robertk1049]

I'm getting some Kathy Bates vibes from this lady, and I don't mean that in a derogatory way. She's perfectly pleasant!

[@tdunn2]

She’s fine…as long as you don’t try to leave. 😂

[@crsrdash-840b5]

I hate this. You think most people can buy brand new cars and anything older than 6 months to a year is not possible on a loan. This is so not fair and is filled with misleading and corrupt information.

[@rixar139]

☘ Irish Honey Badger - Watch THIS Before Buying a Car!

[@johnlacroix1639]

TY,,,,,,WOW incredible very interesting super kool ,1st class great info.,, AAAAAAAAAAA++++++++++++ again great video I liked it a lot ,keep up the great work.

[@ItsWvlfy]

Dude Kim is hot

[@ItsWvlfy]

She’s like a a sexy old Ms Piggy

[@RomeroLopez100]

🚗💳💵👍🏼

[@BIG_Z_69]

If you buy or lease a new car, spend more than 20k for a used car, or pay more than $300 a month for a loan, you’re a fool. Period.