How to Get a Car Loan (The Right Way)

Published 2018-08-31
I'll explain how to finance a car loan the right way!
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When it comes to car loan financing, you've got to understand how it all works, so you don't go upside down in your car, and get ripped off at the dealer. I'll teach you how to finance a car by teaching three simple parts to the process. Enjoy the video and feel free to leave a comment or concern. Thanks.


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All Comments (21)
  • Sketch
    This guy killed it! I just bought a car at 22, still in college (last car was totaled), and after watching this video I feel a lot better about the money I’m paying. One thing I might add is, if you can wait, wait until the end of the year when car companies are trying to boost their sales numbers to investors. They’ll offer some crazy deals and interest rates. For example, I got a 60 mo, 0.9% APR loan after getting $4000 off MSRP from the dealer—all because they need those year-end numbers.
  • Kenan Demren
    I'm a finance manager at a dealership, GREAT video. A lot of people don't understand how all of this truly affects them unless they watch videos like this. ONLY correction is that in some states, warranty is non-negotiable (like in Florida). I bought mine for the same price as a customer would.
  • Warbird Lover
    Thank you, this is very helpful! I've owned one car for over 12 years and payed for it outright. But now I'm stepping into the newer vehicle arena and this is definitely the area I'm a little unclear about.
  • Terri J. Brown
    Great video! I did my research for a few weeks before buying and just purchased my car yesterday! Though I'm just seeing this video, I used these exact steps and was quite pleased with the outcome. Great price on the car, decent down payment and low interest rate. Take his advice, as this is solid!
  • james jonathan
    Went through buying a used car twice last month and now I want to buy cars for others since I've learned so much. Great videos, keep them coming.
  • God's Handyman
    Having a longer loan (6 years+) isn't bad if you have the right game plan. If you're just going to keep your same job for the next 3+ years, it might just be bad. In that time, you can do many thing to earn more money to pay off your loan quicker to avoid big interest.
  • ELA S2K
    Thanks man I'm 20 years old and I had an idea how car loans worked. Your video really tied up all the questions I had up. Thank you for the video
  • Noah G
    Rule number 1: forget monthly payments and focus on total cost. Negotiate until you get the monthly payment that totals to what you can afford and initially set out to pay. Otherwise, take lone from your local credit union with a lower APR. If this can't happen, you don't afford, no deal, run away! As simple as that.
  • Greg
    Wow! This guy is great. Super useful advice and down-to-Earth explanation
  • Esteban Peralta
    One thing he forgot to mention in the video is always pay more than your minimum payment whenever possible so that you can pay off the car earlier i paid my car off a year earlier doing this
  • Roar Bahamut
    Not sure how it works in other countries but currently in Germany, you can get a less than 1% inrest rate on pretty much any car loan. There a lot of comparison sites that show you different banks and companies that are willing to loan the amount.
  • Carter Busby
    This video was very helpful. Especially at the end. Always get an insurance quote before purchasing the car. I dodged a huge bullet when I was 18, I bought a 08 Ford Mustang. When I was getting insurance I was told my monthly payment was going to be 500. Which is absolutely crazy. Luckily I was able to get insurance a bit cheaper for 220 a month.
  • I got a 20,000 loan for 6 years at 17.5%. Biggest mistake financially I've ever made and made me broke for a while but ended up paying it off in 4 years. I went through business school and would cringe thinking about the deal I signed before.
  • Ryan P
    Hello Jason, when I use my own financing...can you please help me understand where the interest in each monthly payment goes to? For example? Does the interest every month go to the dealer or does it go to my bank? And again I’m asking about a scenario where I use my own financing, not the dealership’s financing. Thanks in advance!
  • Seth W.
    Usually the best thing i like to do, is
    1. Research the car you want to buy, what options does it have that you like... (bluetooth, nav, reverse camera, Etc)
    2. Shop around (Get preapproved before you walk into the dealer) credit has changed where you can have inquiries on your credit (multiple) within the first two weeks. It will only count as one.
    3. Make sure you have at least 2 pre approvals before going to the dealer. If you want to try the dealer financing, go for it. The worst that could happen is they offer a higher interest rate, Etc.
    4. Newer cars depreciate faster but they are easier to get an MSRP on and negotiate, while as used cars typically are marked up significantly (do more research when looking for used. Prices vary wildly)
    5. Don't be afraid to walk away, this is the best part about having a pre approval. You can always go somewhere else, dealers will always try to get the highest they can first. Don't let them control what you are going to pay.
  • Marzz GLI
    One thing I have noticed is if a dealership is offering a huge discount (dealership discount not manufacture rebate) they usually offset it by add ons (extended warranty, service contract, GPS or protection pkg). Dodge dealerships in SoCal are the worst at this. Most wont sell you car unless you agree to keep the add ons. At the very least they will make you keep the GPS/alarm at $1000.
  • Always, always check with your insurance before buying a car, especially if you use a broker. I get so many younger drivers come into the office to get a quote only to find out that their insurance costs more than their car payment (California) and have to either take the car back or beg their parents to help them out. And if you use a broker you may have to pay another fee to switch to a cheaper company.
  • William Smith
    Thank you Jason, you've reaffirmed what I already knew about auto loans, my problem is that I have less than a thousand for a down payment before I sell my older vehicle. I'll let you know how it goes.
  • Daniel Blassingame
    Insanely helpful video man. I have just one question. Looking to buy a 2022 Ram 1500 Big Horn. They have a deal going on in my area where financing through Chrysler Capital allows you to have 0% APR for a 72 month loan payment period. Are 0% financing deals always a good deal? And how easy is it to negotiate the MSRP on a truck where you're about to receive a 0% APR loan deal?
  • Iraj Matthee
    There are 3 more points that should be added to the list when buying a used car from a dealership.
    1. The age of the car
    2. The mileage of the car
    3. The (extra) features of the car
    Remember, any new car you're thinking of buying could be a lemon because it hasn't proven that it's reliable as it ages.