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Down Payment
It is a very common question that we encounter.
The key factor is: How much does the auto cost?
The down payment to avoid risk of denial is approx. 10% Used / 20% New.
Example: Used Auto Cost $15,000, then down payment is $1,500 (10%).
Most Common Auto Dealer Marketing Misapprehensions
"0 Down Payment!"
"Only $259 a month!"
"1.9% APR! "
"No Money Down, 0% APR!"
*Become financially aware: Always look at the fine print on advertisements. Offers are usually valid with approved credit only. A salesperson will always try to say "Yes" to everything just to see if you get approved. They do not know what your actual approval odds are, because they have not seen your credit. A suggestion is to see your credit beforehand. Constant inquires to your credit actually may harm your credit scores. Good credit can give you either a low monthly payment or APR (%).
How to calculate total amount after interest (%)?
Formula: I=PRT
I-Interest
P-Principal Amount
R-Interest Rate expressed as a decimal
T-Time/Term
Example: $40,000 x 0.05 (5%) x 3 (years) = $6,000 + $40,000 = Total: $46,000
Tools
Kelley Blue Book (Research Tool) - To find the right vehicle.
Google Sites
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