Articles | Glossary | RSS Feed | Sitemap
RapidCarLoans.net Car Loans How It Works About Us FAQs Calculator
How to manage a Down Payment Effectively for Buying your next Car
 
DRIVE YOUR DREAMS!
Get your Car Financed in Minutes...
100% Secure Website
High Approval Rate!
All Credit Types are Welcome!
  Get a Free Quote
Full coverage in all 50 states
Instant approval program
100% FREE online quote
Lower monthly payments
Save hundreds a year
Low income auto financing
Low interest rates available
Revise your loan terms
Skip your next payment
Bad credit auto lenders
Refinance your used car
Car Loan for Low Rates - Apply Now
 
100% Secure Website
 

Managing Down Payment for Buying a Car


HOME
 

The first thing to cross any car buyer’s mind is to set the correct numbers in place. When you are in the market to purchase a car, one of the biggest questions you will seek to answer is whether you should put your money in savings while paying a higher monthly expense or pay a considerable down payment and score a comfortable monthly payment? The answer depends on various different factors. In order to understand the importance of a down payment, consider the following factors before you make your decision.

Is Down Payment the Right Solution for you?

1) Lender Inclination towards Low-Risk

Financing a car means big numbers. When lenders receive large down payments, the subsequent financial risk associated with long-term loans reduces. According to a Forbes report, TransUnion, a credit reporting agency, predicted that 2018 will see a shift in the trend where lenders will focus on low-risk auto loans. It means it will be beneficial for customers willing to opt for high down payments. Therefore, putting money down while purchasing your next dream car is advantageous in the long run.

2) Beyond Subprime Credit

According to Bloomberg, 9.7% of subprime auto loans cater to delinquency of more than 90 days. Most non-bank lenders are opting for high-risk lending which is increasing the number on a regular basis. But, it won’t remain the same. If you want to obtain an auto loan with subprime credit, you will have to diligent than before. Lenders see an upfront payment as financial stability. Once a high down payment is combined with job stability, the overall credibility of an individual increases. The ideal ratio of a down payment is 20% of the total car loan amount. However, the higher the money you put down, the higher your chances of gaining creditworthiness in the eyes of the lender.

3) Savings Mechanism

As against putting less money down, a larger down payment helps you save in the long run. The money you save by paying an initial large amount turns out to be helpful for you in the long run. As high down payments are associated with increased credibility, you can negotiate your way into lower interest rates and gain high equity on your car. Kelly Blue Book notes that the average price of a light vehicle was $36,270 in January 2018. It is up by 3.9 percent from last year. As cars are becoming expensive, it is a wise decision to make purchases that pay off in the future. So, low interest rates become cost-efficient. Thus, down payments help you save the money that you can then invest elsewhere.

The Down Payment Decision: The Final Word

Putting money down is considered as a wise decision when you are purchasing a car. While you may have come across “Zero Money Down” offers, you should be aware of your personal finances and the additional costs that are added to the auto loan. Therefore, a down payment serves to be in your best car buying interests as it cushions your financial strength for the coming years.

Down payment is important while making a purchase. But, sometimes, you need to buy a car immediately and cannot wait to save money. RapidCarLoans.net understands your urgency of buying a car and helps you obtain one with no money down auto loans. Do not worry about your credit history. The bad credit auto financing company offers loan approval without putting prime focus on your credit score. Apply now.

 

Used Car Loans | Houston Car Loans Guaranteed Approval | Low Rate Car Loan | Private Party Car Loan | No Cosigner Auto Loans | Pre Approved Car Loans | 1st Time Car Loan
New Car Loan | Blank Check Car Loan | Guaranteed Car Loan | 0 Credit Car Loan | Zero Down Car Loans | Subprime Lenders | Car Refinance | Student Car Loan | Car Title Loan
New Jersey Auto Loan | Bad Credit Auto Financing Florida | Guaranteed Approval Auto Loans Ohio | Bad Credit Auto Loans Washington State | Zero Down Texas Auto Loans
New York Auto Loan Guaranteed Approval | Zero Down Bad Credit Auto Loans California | Low Rate Bad Credit Car Loan Michigan | Pennsylvania Car Loan Bad Credit

Copyright © 2018 RapidCarLoans.net. All Rights Reserved.

Twitter     Facebook     LinkedIn     pintrest    Google Plus     RSS Feed
Contact RapidCarLoans.net regarding any technical assistance and doubts. RapidCarLoans.net exclusively owns the content and logo on the website. Any duplication, editing, distribution and any other kind of exploitation of the same requires our special written consent. Please read disclosure and privacy policy for more information.