Whether you’re looking to buy a new vehicle or simply hoping to pick up an attractive lease package, you should put down a down payment before you drive off the lot. Yes, it is possible to find deals that ask for zero down payment, but they may only be available to drivers with exceptional credit. Also, providing a larger down payment will:
- Lower your monthly payments
- Decrease the interest rate
- Help offset vehicle depreciation
- Strengthen a loan application if you suffer from bad credit or no credit history
So, it’s clearly a good idea to make your down payment as manageable as possible. You can do that by looking for less expensive vehicles and saving up more of your pennies. Here are just a few tips.
Scrap Your Old Car
Maybe you’re buying a new vehicle to replace a treasured car that just isn’t reliable anymore. It’s more common than you might think, but there’s really no reason to keep a car around if it’s no longer able to perform its job. Luckily enough, scrapping schemes are becoming increasingly lucrative. Why not scrap your old car and put the money you earn towards the down payment for your next one?
Look for Less Popular Models
People tend to think about the down payment in terms of pounds, but you should also think in terms of percentage. A 20% down payment of £2000 on a vehicle worth £10,000 is better than a 10% down payment of £3000 on a vehicle worth £30,000. To keep costs down, look for less popular models. The Kia Cee’d and the VW Golf are in the same class and offer similar features, but the Golf’s name recognition and popularity generally helps command a higher price, especially if you’re looking for a used model.
If you have a wonderful credit rating, go ahead and take financing straight from the dealership – they’ll probably be able to offer a great payment plan that demands a low down payment. If you don’t have such great credit, shop around using online loan comparison tools to find the best option to meet your needs. Online lenders can often provide better terms for those with credit issues.