How Much Down Payment Do You Have to Pay to Buy a Used Car?
Unlike new cars, whose maximum retail prices are generally steep, there is no fixed magic number when it comes to used car down payments. Depreciation takes away more than 30% of a car’s price in its first year and by the time the vehicle arrives in a used car lot, it is already 50% cheaper. The credit that you will have to take is automatically halved as well and you can choose to pay as much down payment as you want. You might still argue that your credit score might play a factor but in the top buy here pay here dealership, but here, down payments are independent of your FICO scores as well.
You can pay $500 down to buy a used car
Yes, most used car dealerships in Greenville, SC, allow their customers to make a down payment as low as $500, depending on the model of the vehicle you are buying. With low down payments, you can protect your cash reserve and pay off the auto loan from your monthly earnings. You may also opt to spread the loan over a considerable timespan to place a cap on your monthly spending and keep your regular finances in check.
You can also pay 20-30% of the net price
This is a suggested range by investment experts. Paying a moderately high down payment reduces your credit amount and thus, your interest, and you pay a lesser overall amount for your car as compared to opting for the above offer. As stated, used cars in White Horse, SC, sell at a moderately cheaper price owing to depreciation and you can afford 20-30% of the net price despite your financial situation. For long term savings, opt for this figure.
Or, you can pay higher
Good used car dealerships in Greenville, SC, really do not put a cap on your down payment. You can pay as high an amount you wish to during your purchase. Plus, paying a high down reduces the dependency on credit scores and makes approval fast and easy. If you can swing it, a high down payment is always the recommended option. It reduces your APR to a great extent and you literally do not feel the interest expense at all.
Stick to the top buy here pay here dealerships where you get flexibility with down payments. You should be the master of your choice and the payment you would like to make must be your decision. Down payment can start as low as $500 or can even go to $0. It is up to you what you choose.
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