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Will making a big down payment get you a lower interest rate? |
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Answer
It should, but you may have to demand/fight for it. The big down payment means less risk to the lender if they have to repossess it. Just a note - a big down payment would need to be close to 1/2 the total value of the vehicle, not a few thousand dollars on a $12,000 dollar loan. This is also affected by how bad your credit is, especially if you have previous repossessions.
Answer
Basically all a big down payment does is get you more broke. Put down a resonalble amount but don't put all your eggs in one basket per say, and for every two thousand dollars you put down it only buys you 20 bucks off the monthly payment. The best way to reduce interest is to make extra payments,( but mail them in serperate invelopes and write in the comments section that is to be applied to priciple) on top of the regular payment each month. That is providing that you have a simple interest loan that allows you to pay towards the priciple. ask what type of laon you have.
First answer by JG. Last edit by AugustDays. Contributor trust: 195 [recommend contributor]. Question popularity: 153 [recommend question]
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