Getting right into it, I need to share with you guys how to finance a vehicle and save a lot of money and stop getting screwed over!

And this is kind of like a very important topic, right?

Because a lot of people are trying to get cars and I see it, a lot of posts on show are people where they’re like, “Look, I got a 2019 AMG Mercedes.”

You guys are getting 33% interest with $15,000 down payment and you’re putting on, they’re blessed.

I mean, you might be blessed because you woke up in the day, but you’re not blessed putting $15,000 down and getting a 33% interest rate on a vehicle. Okay?

That’s not blessed; that’s stupid.

So why do I come to you?

I mean, you’re blessed.

Yeah, I mean, dude, 33% interest.

Do you have any idea what you’re paying?

Listen, and let me share something else with you.

If you guys have been following me for any point in time on YouTube and you still got shit credit.

Whose fault is this?

If I bring it to you every day to teach you what to do, and there are some people listening, so thank God there are a lot of people that are on this channel who watch me, who actually take action and do things about it.

And then there are the other people that just mosey along their day, watch videos and don’t do anything about it, you know?

And just well, I really like your videos, Mike.

I really appreciate it.

Dude, do something about it.

Change your life. Take action today.

Credit start today, not tomorrow.

And so we’re going to talk about a topic of how to get a vehicle financed, but save you a lot of money along the way.

So first you have to understand the four factors, okay?

And the four factors I’m going to share with you guys today are this: one thing you need to know is how much you are financing.

So from the financial standpoint, the amount that you’re financing is the car value, the interest, the taxes, you know, maybe the leftover part of another car.

So maybe you’re rolling something over.

That is the total amount that you are financing.

That’s the total amount the bank is saying I’m going to give you, you have to understand that what that figure means.

Total amount financed is everything inclusive.

The second factor that you need to know is your interest.

Now, I just made a comment about someone who said they were blessed when they had a 33% interest and put $15,000 down.

How that is blessed, I’m not really sure, but blessed is three to 5% and three to 5% is great, for people with great credit, right?

But there are companies out there that are doing new vehicles, 0% interest.

That means you’re going to pay no interest on the vehicle for the first 12 months.

A lot of them are 12 months. How amazing is that? Right?

You get it a vehicle, a dealership that says 0% interest.

Those are the ones you want to take advantage of, but you’re not going to be able to do it with a 520 credit score.

Okay, let’s be real.

So, let’s also talk about the loan term.

Think about it this way.

Your loan term on your vehicle is dictating, which they do this on purpose, which is dictating your monthly payment.

So the longer the term, the lower the down payment.

However, the higher the interest you’re going to pay, the more interest you’re going to pay over the loan.

So it’s kind of tricky, right?

If you’re trying to get a lower monthly payment, then you want to kind of expand the loan term.

I don’t recommend going over 60 months.

Two years to 60 months is where you want to be.

A lot of them now are doing the 72 months and 84 months.

I do not recommend them.

You’re going to pay three times the current amount of the vehicle than you would just be doing it in something like a four year.

So that is the loan term.

Now, let’s talk about down payment.

I don’t recommend putting any more than 5% down on your vehicle.

You get the people that are putting out $15,000 on $80,000 car.

I mean, yeah, you want to put down 20% you know what I mean? You’re putting down a ton of money. So, 5%.

Okay, let’s say you’re getting a $20,000 car, whatever that is, 10% so 1,000 bucks on a $20,000 vehicle, that’s where you want to be.

Keep your down payment low.

You have a lot more use that you can do with cash, which I’ll do other videos on.

Outside of putting it on a depreciating asset, it’s actually a liability, not even an asset because it depreciates in value, it does not pay you.

You pay for it. Okay? Assets pay us.

Liabilities costs us money, and it depreciates significantly the minute you drive it off the lot.

So I’m going to give you today, I’m going to give you five tips, five tips if you have bad credit.

Tip number one is if you have bad credit, I’m going to give you a recommendation.

Do not finance a vehicle, okay?

Because number one, you’re going to have a huge down payment and high-interest rate.

Number two, if you’ve got bad credit, get your credit fixed first, right?

I know it’s exciting, I want to get a new car, whatever. Maybe buy your car in cash, right?

Yeah, I did say that.

I’m not really a huge fan of it, but maybe you go spend $2,000 if you’ve saved up and you go buy it in cash, so you’re not paying $20,000 for a vehicle that is really worth 10, right?

So if you’ve got bad credit, my recommendation is to either buy something, build credit with it, right? Right.

If you buy in cash, okay, great.

But let’s say you get a vehicle, okay?

And we were just talking about the situation a second ago where we were talking about the difference between 3% and 25%. 25% interest rate for the same vehicle.

Guys, you’re talking about the same vehicle. $690 per month, versus $425 with a three to 5% interest rate.

Same vehicle, $690, $425. Is that not ridiculous that you’re going to pay 200 and some dollars more a month just because your credit is bad?

Buy your car cash. Okay.

Or buy something very, very cheap.

Very cheap. If you’re going to finance and you got bad credit finance, something extremely cheap, very, very, $150 bucks a month, $200 bucks at the most, right?

Just to do it to build credit.

So you get that revolving installment on there, right?

That’s what you guys want. Okay.

Maybe you can save a little bit instead of … so you got two options.

Buy something really cheap if you’ve got not great credit or if you got decent credit.

Okay, we’re going to talk about that in a minute.

So another tip that I want to share with you guys is this.

I typically recommend going to banks or credit unions, not the dealership to get financing.

A lot of mistakes here.

People are going to the dealership, they’re getting hosed. CarMax, right?

Carvana and the interest rate is absolute, you’re going to get a much better interest rate by going to a local bank or your local credit union in a lot of cases.

Okay. And I know people are this big misconception, well, if I go to the dealership, I have a much better chance of getting approved.

No, that’s not the case. What you’re getting is a horrible interest rate because it’s through the dealership. Okay.

CarMax basically just pushes out to a bunch of different places, Santander, and you know, Wells Fargo.

They’ve just pushed you out. And then in the meantime, not only that, you end up with a ton of inquiries so you can then, you know, just expect if you have bad credit, you’re going to have 10 to 15 inquiries because they’re going to push it out to a bunch of lenders to try and get you approved.

Okay, so that’s another tip.

Credit unions or banks only for your financing.

One inquiry, lower interest. Okay?

And probably a lot less down payment. Go with the local banks.

If you guys are under 600 credit score, I’m going to recommend probably not financing.

There are a couple of things you could do.

Number one: you can fix your credit.

If you’re under 600 probably not finance a vehicle. Okay.

Do it cash, small cash purchase.

Or if you do finance, again, go very, very low on the monthly payment so you guys can start getting the credit built up from doing it.

Over 600, okay?

Now we’re getting into a good spot where we can finance, and I’m going to give you a quick tip here because of the difference, let’s say you’re at 600.

That 600 to 700 spot. Yeah, I would recommend you guys getting a car and financing it, but what I want to share with you is this.

By adding say 40, 50, 60 points on to your credit report, you’re at a 600 the difference between a 600 and a 640 could move you up to the next bracket in your financing.

Let’s say you’re in a 625 and you’re going to 675 right? It moves you up a bracket.

Now, your interest rate goes down significantly. Your down payment goes down significantly.

That difference if that 50 points could be over $100 dollars per month in your monthly payment, and I’m going to share with you how to do it: add age to your credit report.

If you add age to your credit report, your score will increase dramatically.

Give you an example.

You’re at a 620 credit score and you ask the dealership and you’re like, “Look, if I had a 675 credit score, what would that put me?” “Well, sir, if you had a 675 credit score, your interest rate would go down from 13% to 5%,” right?

And your down payment would go from $3,000 down to $1,000. Wow.

And by the way, your monthly payment would be a $100 dollars less per month, just by an increase in 50 points.

Now you’re asking me, how do you increase 50 points?

I’m going to share it with you how to do it.

You add an aged trade line to your credit report.

So we have helped thousands of families being able to get into vehicles with a better interest rate, a lower down payment and just from the approval process where they go in, they get denied.

It’s embarrassing to walk in and get denied for a vehicle because of what?

You have a low age, you don’t have a great credit score.

So if you guys need help with that at all here at Wholesale Trade Lines, that is what we do.

We can add an age trade line.

You can go to the dealership knowing that you’ll have a low down payment, small interest payment, and your chances to approval go through the roof.

***Call us NOW at (888) 810-2897 or visit mckenzieadams.net to learn how to Protect and Improve your credit RIGHT AWAY***