Down payment on car loan?

I found a car that I really like. The only thing is to put a down payment on it I need to sell my current car and get the money from it. Does it make a difference if I finance everything with 0% down and once I sell my car I put the money against the loan, or if I put the same amount as a down payment and finance the rest?

Down payment on car loan?

It will only make a difference if your lender is giving you a higher interest rate due to the fact that you have no down payment. If the interest rate is the same in either case, it doesn%26#039;t matter if you make a down payment or put the money toward the loan after the fact.

If you are using a dealer, you should try to trade your old car in because they can play alot more with your payment that way.

I agree with Roger that you should also check what your payment will be per month, if you do put the money down upfront, that can lower your payment per month. If you can afford the payment per month without the down payment, you will be better off because your loan will be paid off sooner and you will pay less interest.

Down payment on car loan?

2 things that are benficial from a down payment are less month payments, and a lot of times a lower interest rate.

Down payment on car loan?

trust me put the money later towords the principal of the loan----because as a down payment ---they might use half ur down for crapy fees-----with zero down ---u r limiting there over stretch in the deal----that if ur fico is ok to go 100% ---if not then u have to put down payment----------another benfit to put the down later towords principal to show in ur credit that u took ur balance from for example 12000 to 9000 in 3 month which have a boost factor to ur fico score.

Down payment on car loan?

it would be better to sell your car and put it towards the down payment. the bigger your down payment the less a month you have to pay, not to mention the less in interest you will pay in the long run. you do have the option to put 0% down and then put the money you made from you car and put it towards your first month payment. as long as the loan will let you pay more than your actual monthly payment you can do that too.