Car Buying Tips and Mistakes to avoid - (Good timing, Basic info, Interest rates and Insurance)

Summary

The video provides car buying tips, focusing on timing purchases around major holidays and end-of-year sales to get the best deals. It advises setting limits on interest rates and insurance costs before committing to a car, and being prepared to walk away if needed. Having basic car knowledge helps avoid getting scammed. It notes the importance of considering safety features and not just going for the cheapest car. Overall it aims to equip first-time and experienced buyers with strategies to get good deals on cars while avoiding common mistakes.

Takeaways

• 😊 The best time to buy a car is around major holidays when dealers offer specials.
• 😣 Black Friday car deals are not always actual discounts.
• 💡 Target outgoing models when new versions are coming out to get good discounts.
• 💰 Set a maximum interest rate you're willing to accept based on your credit profile.
• 🚘 Don't commit to a car without first checking how much insurance will cost.
• 📚 Learn basic car, insurance and finance knowledge to avoid getting scammed.
• 🚗 Consider safety features and crash test ratings, not just price.
• ⏰ Good timing when purchasing can save you money.
• 😠 Avoid accepting the first finance offer without negotiating.
• 🔍 Do online research on models to make informed decisions.

Q & A

What are some good times of the year to buy a car when dealers offer specials?

Major holidays like Easter, Christmas and New Year are good times when dealers run specials and you can get good deals without negotiating. You can also get good deals towards the end of the financial year when businesses are wrapping up their books.

What is the issue with trying to get deals on Black Friday?

Sometimes the Black Friday specials and discounts are not real. Dealers may increase the regular price and then claim a Black Friday special price which is not actually a deal.

How can you save money by timing your car purchase when new models come out?

When a new model or facelift is coming soon, dealers will offer huge discounts on the outgoing models to clear out old stock. However, the new models often have better tech and features.

Why is it important to set a target for the maximum interest rate you will accept on car financing?

If you don't set a limit on the interest rate, you may end up accepting a very high rate just to get approved. By setting a target rate based on your credit profile, you can negotiate better or walk away from a bad deal.

What should you do before committing to buy a particular car model?

Before committing to a car, get insurance quotes to understand how much it will cost to insure. Some models have very expensive premiums and high excess amounts.

Why is it important to have basic car knowledge before buying?

Having basic knowledge about cars, insurance and financing makes it harder to get scammed. Understand model lineups, specs, etc. to make informed decisions.

What two car models does the narrator have serious issues with and why?

The narrator has issues with the Ford Figo and Hyundai Atos - they are very cheap but offer poor safety in a crash so you or your family may get seriously injured.

What terms should you understand regarding car insurance?

Important insurance terms to know are premium, excess, shortfall, exclusions.

When can cheaper cars actually be more expensive overall?

The cheapest car to buy upfront may end up being more expensive if it has poor safety, leading to injury and hospital bills in a crash.

What topics does the narrator cover on his YouTube channel?

Topics covered include: buying used cars, car finance, insurance, selling/trading cars, what to do if you can't pay, and car buying tips.

Outlines

00:00

😊 Tips for Buying Your First Car

The first paragraph provides tips for buying your first car. It mentions the best times to buy a car are major holidays when dealers offer deals, end of financial year when businesses close books, and when outgoing models are being discontinued which can have big discounts. It warns that Black Friday deals may not actually save money. It advises setting a max interest rate you'll accept when financing based on your credit, and being prepared to walk away if you don't get favorable terms.

05:00

😨 Shocking Car Insurance Costs

The second paragraph discusses the shocking car insurance costs some people are paying, with examples of high premiums and excess amounts. It advises checking potential insurance costs for a car before committing to buy it. It also recommends gaining basic car knowledge beforehand so you don't get scammed, including learning models, specs, insurance terms, finance terms, etc.

Keywords

💡car buying tips

The main theme of the video is providing advice and strategies for purchasing a car, especially for first-time or novice buyers. Examples from the script include timing purchases around holidays for deals, targeting outgoing models, and negotiating interest rates.

💡interest rates

A key concept when financing a car purchase. The script advises buyers to set a target for the maximum interest rate they are willing to accept based on their credit profile and to negotiate for better rates, using the example of prime rate vs prime plus 1%.

💡insurance

An important consideration when buying a car. The script uses an example of someone paying extremely high premiums and excess fees to illustrate the need to research insurance costs before purchasing a particular model, especially if it is high-risk.

💡basic knowledge

The script stresses the importance of buyers educating themselves on cars, insurance, and financing to avoid getting scammed due to ignorance. It uses the example of different VW Polo trim levels that buyers should understand.

💡outgoing models

Targeting the previous model year of a car that is being replaced by a newer version. The script states dealers offer huge discounts on outgoing models to clear old stock, but buyers may miss out on new features.

💡high-risk car

Models that are more expensive to insure due to factors like power, cost, or crash safety ratings. The script advises researching insurance costs for desired models, especially if high-risk, before purchase.

💡balloon payment

A large final loan payment after paying smaller installments. The script observes banks seem to offer lower interest rates on loans with a balloon payment versus no balloon with a deposit.

💡trade-in

Exchanging your old car towards a new one. While not directly referenced, the script introduction mentions covering this concept as part of the channel's car buying advice.

💡good timing

Making your car purchase during promotional periods when dealers offer specials and discounts, such as holidays, end of financial year, etc. This concept is introduced early on as the first car buying tip.

💡car finance

Loans used to pay for a car over time. The script looks at issues like interest rates, deposits, terms to know when financing and warns against accepting any deal without good rates or terms.

Highlights

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Transcripts

so as I was saying that's how you

realize you messed up the process of

buying a car is very stressful

especially if you're a firsttime buyer

so on today's video I'll be sharing some

car buying tips and the mistakes you

should avoid if you're in the process of

buying your first second third or your

retirement car if you're new here my

channel has almost everything you need

to know about buying cars except the

mechanical stuff for obvious

reasons I've covered topics like buying

used cars car finance Insurance selling

or trading in your car what to do when

you can no longer keep up with your

payments and more but collab today's

business is car buying tips and tip

number one is good timing when you're

planning on buying a car it's very

important to time the purchase properly

cuz some seasons have better deals than

others yes you can get good deals

anytime if you are good at scouting and

negotiating but for average consumers

who are still new to the game the best

time to buy a car is when dealers are

running specials this normally happens

around major holidays like Easter

Christmas and New Year you get good

deals without even

negotiating you can also get nice deals

towards the end of a financial year when

businesses are wrapping up their books

the issue of Black Friday is very tricky

cuz sometimes you get real discounts and

sometimes it's just a scam I once saw a

2018 318 IE going for

279,000 and on Black Friday they

increased the price to

289,000 and called it Black Friday

special so sometimes Black Friday

specials are not really special it's

just daylight

robber the other trick you can use to

save money is targeting outgoing models

when a new model or facelift is coming

dasas normally offer huge discounts in

order to get rid of the Old Stock a new

ugly Swift is coming new Picanto is

coming new celos new tigan and more and

if you target those cars and time you

purchase proper you can get yourself s a

nice deal the only problem with this

strategy is that new models often come

with updated Tech new features and in

some cases safety improvements so if you

buy the outgoing model you will miss out

on the new features you have to pick a

struggle do you want new tech gimmicks

at a ridiculous price or an outdated

model at a very low

price the next point we should discuss

is interest rates when it comes to the

issue of interest rates don't apply for

car finance without a target try to set

the maximum interest rate you willing to

accept based on your credit profile if

you don't set a limit you accept

anything I've seen people accepting m 16

17 or 18% on car loons and if you're one

of them don't feel attacked we just

trying to save others if you've been

following the channel for a while you

know last year I was shopping around for

a used

BMW so I found a 2018

320d it was overpriced but I applied for

finance and got an approval

my target interest rate was prime or

prime minus I was not willing to take

anything above Prime and they offered me

prime plus 1% meaning my interest rate

was going to be

12.75% cuz the prime Landing rate was

sitting at

11.75% and I said no I tried to

negotiate they gave me a runaround and I

walked away I know some of you are

probably thinking dude so you walked

away because of

1% my man 1% is not one rent if it was

not a big deal they were just going to

chop the 1% but the fact that they gave

me a runaround tells you everything you

need to know and that's why I still

don't have a BMW and I'm off the market

cuz the prices are crazy at the moment

so don't just accept whatever you

offered be prepared to walk away if you

don't get what you want some people just

accept anything all they want is an

approval they don't care whether the

rate is good or not they take the deal

then there's those who don't know their

interest rate at all they just apply for

finance get an approval and take the car

you ask them what's your interest rate

they have no idea there's a trend I've

noticed with most banks if you opt for a

balloon payment and pay no deposit they

offer you a lower interest rate but if

you don't want a balloon and pay a

deposit you get a higher interest rate

even if you have a good credit profile

so if you know you deserve better always

negotiate and stand your

[Music]

ground tip number three is the issue of

Kai Insurance in December tweeted about

car insurance and the comments under

that tweet really shocked me people are

paying crazy premiums my excess of up to

35,000 R for Budget Cars true story I'm

not making this up someone was paying an

insurance premium of 3,500 with an

excess of 27,000 R for a polo

Airline this person was a new driver

high risk staying in Soto high risk

driving a VW pole high risk in a

situation like this everything is

working against you you and we can't

really blame the insurance company so

before committing yourself to a

particular car try to get some insurance

cost to see how much it cost to ensure

that car there's a link in the

description and comment section just do

a quick online Cod to see how much it

will cost to ensure the car you want

don't just commit yourself to a highrisk

car without knowing how much you're

going to be spending on

insurance at number four we have basic

car knowledge cuz knowledge is power it

is very easy to get scammed if you

ignorant so regardless of your gender

you have to learn the basic things about

cars insurance and finance before buying

a car there's no need to crem info about

every car brand out there you can just

focus on the specific brand you want

learn about their model lineup and their

different spec levels if you want a VW

polo you should know the difference

between a polo Vivo Polo Vio GT Polo

live Polo Arline and Polo GTI in order

to make an informed decision if you're

ignorant you think you're buying a polo

GTI it's just a normal polo with GTI

stickers and aftermarket dreams GTI TCR

that's not really a TCR but that's pum

up with insurance you have to know terms

like premium access shortfall and

exclusions then with Finance you should

know things like balloon interest rates

admin fees settlement and

more number five is a bonus and it's

type of car and safety

features I roast a lot of cars but I

only have serious beef with only two

cars

one

two a quid cost 200,000 R but I'm not

here to tell people what to do with

their money so buy what you love but

always remember that the cheapest car is

not always the best car to buy cuz in

the event of a crash you or your family

members will Cry tears either way

there's going to be tears in involved

welcome to another

video on my next video I'll be checking

out a Toyota Rion for those who've been

asking for seven C mpvs thank you for

watching don't forget to like share and

subscribe to the channel for more car

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