does the downpayment on a car affect what my monthly payments will be?

Question

example like if i put down 10 thousand on a 23 thousand 350z.

Answer 1

The payment WILL be less because:

Car price 23,000 - no down payment = a loan amount of 23,000

Car Price 23,000 - 10,000 down = a loan amount of 13,000

as you can see, the more money you use as a down payment, the less amount of money they must loan you to buy the car.

That is why your payments will be less.

Answer 2

Not only will you lower your monthly payments, but you can also get a lower interest rate on your loan due to the amount of equity your putting in up front. Dealerships and banks don't want somebody with a 10G downpayment walking out unsatisfied.

Answer 3

Yes, the higher your downpayment, the lower your monthly payment.

However, if you finance for a shorter amount of time, you will save even more money on interest in the long run (though your monthly payments will be higher.

Answer 4

Yes. The more money you put down as a downpayment, the lower your monthly payments will be.

Answer 5

Yes! Try to put as much down as you can afford in order to keep your monthly payment low so that you will not have a problem paying monthly payments.

Answer 6

The more down the less the payemnts will be. The point to consider is if you give a large down payment and the car is stolen or wrecked the insurance will almost nver pay the full amount. The general rule of thumb is to give the lowest down youcan afford since this way you will be covered and your possible loss will be less.

Answer 7

It relies upon on the words of the indoors maximum loan. some loans calculate the whole own loan alongside with pastime and that's the whole quantity you will pay in spite of whether or no longer you're making extra early money. some loans will notice the extra money in the direction of the critical appropriate away which will cut back the whole quantity of pastime due over the existence of the indoors maximum loan. you will desire to ask your economic employer if extra money would be utilized to the critical to cut back the whole pastime. If confident, then take the indoors maximum loan and pay the $4500 once you get it. If no, then take the $4500 and make investments it to make a sprint pastime and in simple terms make the in many cases going on own loan money as they arrive due via fact there isn't any earnings to paying it off early.

Answer 8

I do know that the bigger the down payment is the smaller the monthly payments will be.