Down Payments

US Money Mixed Bills

“Do I need a down payment?”

One question we often hear from potential buyers is, “Do I need a down payment?”. Which is almost always immediately followed by, “How much will it be?”.  And the simplest and most honest answer we can give is, “It just depends.”

Several factors can affect whether or not a buyer will need a down payment and how much it will need to be.

Here are a few things we tell our clients to keep in mind when trying to determine if they’ll need a down payment on a vehicle purchase.

Factors that Influence Down Payments:

  • Down payment will vary between purchase and lease.
  • First-time buyers and those with limited or challenged credit may be required to put money down to show good faith with the lender.
  • The amount of money down can affect your payments, and help get you closer to your desired monthly payment.
    • Approximately every $1,000 financed is equal to $100 per month in payment.
      • For example, if your beginning monthly payment is $500 with no money down and you want the payment to be $350, you’ll need to put down roughly $1,500 to get closer to the desired payment.
  • Financial institutions may have different requirements for down payments based on credit and the amount to be financed.

We Can Help

We have a network of 20+ lenders in our network that we can work with to help get you the best payment with as little money down as possible. But keep in mind, to get the most accurate assessment of a down payment needed would require the completion of a finance application. If you already have a car or finance amount in mind, play around with our payment calculator to see what options you have for terms and payment amount.

There’s obviously a lot more detail that can go into this, so if you have any questions, please don’t hesitate to contact us directly. We’re more than happy to have one of our certified Finance or Business Managers give you a call to discuss your unique situation.

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