A Hyundai sales rep probably entered the upsell Hall of Fame after a customer brought a paid off vehicle in for an oil change, only to leave with a 7-year loan on a brand new car.
Natalie (@nataliedreamdrive) posted a viral TikTok about the customer’s decision, which left a lot of folks on the application shocked.
Her video begins with a red Hyundai crossover SUV heading into the service center at a local dealership. She writes in a text overlay of the video: “Taking my PAID OFF car for an oil change at the dealership.”
The clip then quickly cuts to a recording of a brand spanking new white SUV with a green bow placed on top of it. Another on screen caption reads: “Leaving with a NEW 84 month car loan.” The camera then pans to Natalie handing off the keys to the customer who originally came in for the oil change, Madisan (@mmadisann). They strike a pose for the camera as the video cuts out.
Natalie tagged Madisan in a caption for the video, joking that even though she had a fully paid off car, there was a silver lining to having a new monthly vehicle payment. “But hey now free oil changes for 3 years right? Winning!” she wrote.
Oil change to new car?
Numerous users on the application responded to Natalie’s post to say they are stunned she’d ditch her paid off car to enter in a 7-year commitment on a Hyundai. “84 months is crazy work,” one person remarked.
Someone else exclaimed, “With a Lexus maybe but a HYUNDAI.”
A lot of people who just couldn’t believe the length of her lease term. One user said, “The max I’ll EVER do is like 64 months 84 is outrageous.”
“Salesman was high fiving his coworkers and went out for drinks to celebrate after you left,” one user on the app penned.
Turns out there were other folks who also regretted getting a new vehicle when they already had a perfectly functional paid off one as well. One person said, “Here I am crying over a 72 month car loan wishing I would have made peace with my paid off Prius.”
Should you avoid a new car loan?
Purchasing depreciating assets are sometimes unavoidable, but new cars are particularly terrible investments. There are throngs of TikTokers who caution folks against buying a brand new car unless it’s absolutely necessary. CNBC also spoke with self-made millionaire David Bach who flat-out stated that folks should never, “ever buy a new car.”
Bach told the outlet: “Nothing you will do in your lifetime, realistically, will waste more money than buying a new car. It’s the single worst financial decision millennials will ever make.”
He also pointed out the monetary insanity that entails taking out a loan that accrues interest in order to buy an asset that almost instantly drops “down in value by 30 percent.” Which means that you’re paying more for something becomes less valuable right when you take it off the lot.
So what does Bach recommend? Purchasing vehicles that are 2-3 years old, because these are vehicles that are coming off of leases. “Buy a car that’s coming off of a two-to three-year lease, because that car is almost brand new and you can buy it at that 30 percent discount,” Bach said.
Is this why you should avoid the dealership?
The Consumer Law Group says car dealerships often employ strategies to get customers to focus on the monthly payments rather than the overall terms of the loan. With compound interest rates on such a large investment racking up every single month, this ultimately leaves new car buyers paying well over its total buyout.
Instead, focus on an out-the-door price for the vehicle and work the payments back down from there. Or, if you’re going to focus on monthly payments, do some quick multiplication to stack what you’ll be paying over the total term and stack that against MSRP.
A car buying expert on TikTok recently revealed that it’s easier to get pressure people to sign on the dotted line in person. He advises to be cautious when financing through the dealership, and to avoid dealerships entirely if they won’t haggle on price.
@nataliedreamdrive @Madisan But hey now free oil changes for 3 years right? Winning! #carsoftiktok #hyundaisantafe2024 #hyundai #saleshumor #sanantonio #financiallyresponsible ♬ original sound – House of Auto
The Daily Dot has reached out Natalie and Madisan via TikTok comment for further information.
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