60MinuteCar

Why 0% APR is SCAM

Hey, my name is Dan. I used to work at the biggest dealership in the country and now I teach fine folks like you how not to get f•••ed when buying a car. Now in this video, I want to talk to you about why zero percent interest rate is a scam and why you should never, ever go for it. How do dealerships give you zero percent EPR? It’s very easy. They just pay for the interest rate. It’s not a zero API. It’s not a zero interest rate. Somebody is still paying for the interest rate. There still is interest rate. It’s just they’re paying for it instead of you. So it’s not really zero EPR. Don’t be fooled. Have you ever seen those ads that say zero percent interest rate? I just want to make sure that we’re on the same page. You go to a dealership and they say you can finance a car through us for like four years or five years. Typically, it’s four years if you can manage to pay it off in four years. They’ll give you zero percent interest rate.

And you think it’s such a great deal because on average, car in America costs thirty five thousand dollars. So if you’re an average person, does buying a car, let’s say you’re not a millionaire, you’re not trying to buy a f•••ing Rolls Royce.

You’re going to be buying a car somewhere around thirty five thousand dollars. Thirty five thousand dollars with average interest rate of just over 3 percent is going to be three thousand dollars worth of interest rate. You’re going to have to pay by the time you pay off that car. So that’s thirty five plus three. That study, eight thousand dollars. All right.

So with this regular interest rate, you’re going to pay thirty eight. They’re telling you you can pay thirty five.

But it’s a really bad idea. And here’s why. Because when you take them up on this offer, they will not lower the car price. Any significance? I mean, they may give you like three hundred or five hundred dollars off on that thirty five thousand dollar car, which is nothing. You should be aiming for twenty five to twenty eight preferrably 30 percent if you got a big pair of f•••ing balls. You can probably make it happen at 30 percent off the car price because on a $35000 car you should be aiming to get this car out the door without taxes, without taxes for twenty seven thousand dollars for twenty seven thousand dollars. Now if you do the math on the interest rate on twenty seven thousand dollars, that comes out to two thousand dollars. So twenty seven plus two, that’s twenty nine thousand dollars if you got a pair of balls, if you know how to negotiate.

If you took my course, then you know how to get the car way lower than what the dealership is still new. They can sell it for.

Now twenty nine thousand dollars or thirty five thousand dollars. Which one do you want to go with? You saved six thousand dollars by knowing how to properly buy a car, how to negotiate, how to properly look for a car, how to save time and money and not go into dealerships to negotiate and waste time with the salesman. Work with the phone. Work with email before you go to the dealership. I always, always, always tell people do not go to the dealership unless you’re picking up a car. Do not go to a dealership unless you’re driving a car and prefer leaving when you’re picking up the car. I mean, sure, you can have that delivered to you. We’re in the 21st century. It’s a car.

It’s not a spaceship that can deliver it to the best thing you can do. Really? This is the best thing you can do is learn how to properly buy cars. Learn the course that I offer. Learn that that’s a skill that you’re going to have for rest of your life. Buy a car that’s 3 four years old, 20, 30 thousand miles with all the options that you want on it. With the colors of exterior and interior that you want for half the price, why would you go out and buy a new car when you can buy the same car used barely used just 20, 30 thousand miles. And get yourself the best possible deal at 50 percent off the original price. Why would they pay 60 thousand dollars for a truck when I can get the same truck for thirty thirty five thousand dollars? Why would they pay fifty thousand dollars for a new Lexus when they can get the same Lexus for twenty four thousand dollars? Why would they go pay a twenty to twenty five thousand dollars for a entry-level car, like a civic, like a hongdae or caracciolo or mazda3 where I can get the same car for twelve ten thousand dollars? Only three years later.

The reason there is huge. Just crazy depreciation on cars in first three four years is because the car market is only willing to pay what the car is truly worth on the open market, not what the dealerships are pretending. These cars are worth. The reason car prices drop like a rock in first three or four years is because there is the price of a car. This here is 30 percent. This year is 30 percent of profit. The dealerships have if we take that away, then cars right off the bat. If we were buying cars from the manufacturers right from the start, then cars would not go this crazy 50 60 percent depreciation in its first three, four years. The reason we have crazy depreciations is because we buy cars from the dealerships. Hey, if you enjoyed this video, give me a thumbs up below and link to subscribe. Button over my head or watch one of those two videos. If you want to see more money saving tips about cars. This is Dan with 60 minute car. I’m signing out and I’ll see you on the Internet.