There is a belief among customers that a down payment on a car goes directly into the sales persons pocket. This could not be further from the truth. Now, I will say to make your best deal on the car first, but when it comes time to do financing, always put money down. Not only will this decrease the amount that you are financing and lower your payment, but may also get you a better rate with the lender as you will be financing that much less under their guidelines. The banks look at book price when financing a car, and always take into consideration the fact that they own the car, up until the time you pay it off. This will also make it easier to trade this vehicle down the road if you so choose because you will owe less and avoid being upside down.
Car Buying Tip; Money Down!
There is a belief among customers that a down payment on a car goes directly into the sales persons pocket. This could not be further from the truth. Now, I will say to make your best deal on the car first, but when it comes time to do financing, always put money down. Not only will this decrease the amount that you are financing and lower your payment, but may also get you a better rate with the lender as you will be financing that much less under their guidelines. The banks look at book price when financing a car, and always take into consideration the fact that they own the car, up until the time you pay it off. This will also make it easier to trade this vehicle down the road if you so choose because you will owe less and avoid being upside down.
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