Chevrolet Finance 101: Do I Need to Make a Big Down Payment?

April 27th, 2022 by
The Patriot Chevy Finance Team can help you get a flexible auto financing plan that fits your budget. But when choosing how to pay for your new ride, should you save up to put more money down, or invest a larger amount month-to-month? Let’s explore the pros and cons of bringing a bigger down payment when buying a vehicle.  

Pros

Putting down 20% or more when buying a new car could really pay off in the long run. The more you pay now, the less time it will take to own your vehicle outright. Even better, you’ll likely avoid paying more than market value.
If you have poor or no credit, putting a larger amount down is even more advantageous. It’ll help you avoid being stuck with a pricey, long-term, high-interest loan. And the amount you still owe will be manageable enough to fit into your monthly budget. 

Cons

Unfortunately, putting 20% or more down on a vehicle is often unattainable — the average down payment is up around 10%-12% of total car value. Unless you’ve been saving diligently for a long time, you probably don’t have tens of thousands of dollars lying around. This is doubly true if you urgently need a vehicle, or you’re purchasing one in the wake of an unexpected event. 
One thing you absolutely shouldn’t do: jeopardize your savings or go into debt just to put a bigger down payment on a car. Your down payment should be large enough to keep your monthly payments sustainable, but not so large that it harms your financial health. 

The Bottom Line

If you’re able to put upwards of 20% down on your dream car, more power to you! It’ll help you pay off your car faster and outrun depreciation. But if you can’t, and you need a car now, don’t stress! The finance experts at Patriot Chevrolet Limerick can help you find a plan that works with your wallet and timeline — let’s chat. 
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