Chevy Down Payment Guide
When you’re in the process of buying a new car, the down payment is an important part of Chevy financing. The question of how much to put down can be tough, especially for first-time car buyers, but the experienced team at James Martin Chevrolet will answer all of your questions.
What is a Down Payment?
The down payment is the amount of money you pay upfront before?financing a new car. For example, you’d start by visiting James Martin Chevrolet to obtain a loan that you’ll use to pay for the car. You’ll then need to pay the loan back in the form of monthly payments. The bigger your down payment is, the less you’ll have to borrow, and thus the lower your monthly payments will be.
How Much is a Typical Down Payment?
The average down payment on a car is 10 - 20% of the purchase price, depending on whether you are buying a new or used car. However, this depends on what you can afford.?
For example, if you've been planning for a while to buy one of our new Chevy cars and you’ve saved up a big down payment, you’ll probably be on the high end of this range. On the other hand, if you just bought a new house, are starting a family, or have other financial obligations, you might make a smaller down payment.
Why Should I Make a Down Payment?
There are several benefits to making a sizeable down payment on one of our new or pre-owned cars. These benefits include:
- Improve your chances of getting approved for financing
- Reduce your monthly Chevy payments
- Lower your interest rates
- Decrease your loan-to-value ratio (LTV). This helps minimize the chances of ever owing more than the car is worth.
Does My Credit Score Affect My Down Payment?
Your credit score doesn’t directly impact your ability to make a down payment, but it could affect the loan you qualify for. For example, if you have a low credit score but you want to qualify for a loan with a low interest rate, a larger down payment might help since it would reduce the loan amount and thus the risk of defaulting in the future.
Get Chevy Financing Today
Making the right down payment is an important step towards buying a car you not only love but can afford. Our Chevy dealership in Detroit, MI, stands out for our commitment to outstanding customer support, especially on the financing side. Visit us today and we’ll make sure you know everything there is to know about a down payment.