This isn’t the first time I’ve seen someone make this claim on TikTok and I’m beginning to wonder if there’s any validity to the idea…

A man named Brandon posted a video and explained why he thinks people shouldn’t make down payments when they buy cars.

Brandon told viewers they should never make down payments when buying a car because he claims “it’s all a game” and he said that people who do this put money down on a depreciating asset that has interest and that they have to make payments on.

He continued, “Instead of putting the down payment on that vehicle, take that money and use it on your first payment. That way it goes toward principal and you pay down your loan that much quicker because you’re gonna be making a payment no matter what.”

Brandon added, “That down payment never helps you out. it goes to the dealership, it doesn’t go to the bank.”

Brandon explained to viewers, “If you have good credit you shouldn’t have to put money down on a car. If your credit is challenged, the bank is gonna come back and say you’re only approved if your vehicle is $30,000. The bank’s only gonna finance $22,000. That means you have to come up with $8,000 out of your pocket towards that vehicle.”

He continued, “The dealership is gonna bank that $8,000. They are keeping that money because that vehicle typically is on loan from the manufacturer and they can set the price at whatever they want and try and make as much as they want on that vehicle.”

Here’s the video.

@the1mr_gratitude

Never put money down on a car #advice #car #cars #dealership #money #game #foryou #inflation #finance

♬ original sound – Brandon☑️ Mr Gratitude

And this is how people reacted.

This reader learned something new…

Another viewer chimed in.

And this TikTokker shared their thoughts.

Well, that’s a new one…

Now that you’ve read that story, check out this one about a delivery driver who took a $400 grocery order back because she wasn’t given a tip.