Even with our trained Mazda financial team, car financing can be complex and the many different terms and options can seem daunting. However, down payments are relatively simple and are a great way to lower the overall cost of your loan or lease. Learn about down payments, then come to Sentry West Mazda to start the purchasing process!
Why Make a Down Payment?
Technically, you may not be required to make a down payment, but it’s always a good idea. Making a down payment cuts down on the overall cost of the car before the loan begins. This means that money doesn’t accrue interest, giving you a significantly lower payment and a more financially stable position.
How Much Is Normal?
A good rule of thumb is for a down payment to cover about 20% of the total cost, but a higher down payment is almost always better. If you need to increase your amount, you can trade in your current vehicle and put its value toward your down payment.
Going Upside-Down
Not making a down payment makes it much easier to end up upside-down on your loan. An “upside-down” loan is one where the owner owes more than the car is worth. Cars begin to depreciate in value the minute they drive off the lot, so without a down payment to offset it, you may end up with a car losing value faster than you can pay off your loan.
Learn More About Down Payments with Our MAZDA Financial Team
Making a down payment is a great way to make the car loan process smoother and easier. Come down to our Shrewsbury, MA, Mazda dealership and talk to our finance team to learn more, then apply for financing today!
Connect with us
Archives
