What kind of down payment do I need to finance a car?

What kind of down payment do I need to finance a vehicle?

Many people are confused when it comes to figuring out how much they should put as a down payment when it comes to getting a new or used vehicle. Pioneer Auto Group has some advice for those wondering!

 

 

 

Generally people looking to finance a new vehicle look to put about 10% down. This means buyers who want to finance the purchase of a $10,000 used vehicle should plan to put at least $1,000 down.  More money down may be required on a new car than a used car to offset its quicker depreciation. Usually, an initial payment of 20 percent or more of the purchase price is wise.

 

Typically the more money you put down the better off you will look in the eyes of the lender or loaner. If the person getting the loan defaults early on their loan the lender already has some money and that will mean they will tend to drop the monthly payments a bit or shorten the lease a bit. This makes it easier for people to afford cars and means more business for dealerships!

 

 For more information give us a call at 778-246-6201 or visit our website at www.pioneerautogroup.ca!