The More Money You Put Down the Better

The bigger the better when it comes to a down payment. Whether you have good credit or bad credit, you can get a better interest rate if you put more down. There are a lot of car dealers that will let you drive off the lot with nothing down, but that’s not a great choice.

858228 dusty 206 The More Money You Put Down the BetterYou’ll pay a higher rate of interest for that privilege and you’ll of course pay longer because you will have financed more money overall. If those are things that you can live with then that’s fine, but why not save yourself some money in the long run by putting money down when buying your car? If you don’t have any money saved up that you can use for a down payment you might not really be able to afford the car that you want anyway, so that’s something to consider.

Even dealers that require you to put money down often let you get away with only putting around five or ten percent down. If you can, though, put down twenty percent or more. Not only will it lower your rate of interest and your payment each month, but it will also lower your total amount paid, and paying something off sooner will help you raise your credit score.

That’s a great thing to be able to do in today’s world where the economy is so problematic. By putting a larger amount down you may also be able to get a shorter loan term and still afford your payment, which is a huge plus overall.

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