Bigger downpayment=small payment? for a car?

Question

im goin to buy a new car and i was wondering if you put a big down payment on the car does that mean your monthly payments are going to be small?

Answer 1

WOW... your right

Answer 2

If you are buying a new car, there are a couple of different approaches available to you.

If they are offering a zero (0) per cent interest, then put down as little as you can and use their money.

If they are offering a cash rebate, then you may want to put a large down payment and borrow the money from the bank to get the cheaper initial price. Ideally, you will own your own home or condo, and can get an equity loan on the house. That way most likely, the interest that you pay will be tax deductible. Do check with an accountant before you deduct the interest. There are some rules that apply.

Finally, there is the combination of either interest free, or low interest rate, and a cash rebate. You will need to get a pen and paper and sit down and figure it out as to which combination will benefit you most. You can shop around for the loan just as you did for the car.

Before you sign the paper, be sure that you know the total cost of the car and that you are making the best deal for yourself.

good luck.

Answer 3

Yes, depending on the loan amount and interest rate, your monthly payment will be approx 30.00 lower per month for every extra 1000.00 you put down over the basic 20 percent--finance officer at your bank or the dealer can quote you exact amount.

Answer 4

You're a math genius. Yes, the more you pay for the car upfront in cash, the less you pay per month in payments.

Answer 5

for every $1000 you put down it will lower your payment by $20

Answer 6

yes. you will be financing a smaller part. It will also make the loan easier to get because there is less risk.