Taking out a new car loan is a big obligation, so you might have some questions. Here at BMW of Fort Washington, our BMW financing experts are ready to answer them. So if there's ever been anything that you wanted to know about down payments, we're here to help you out.
What is a Down Payment?
The down payment is the first payment you make on your BMW vehicle. This is going to be required when you make any kind of BMW financing arrangement.
Some lease incentives don't require any money down, but if you want to take out a loan and actually own your vehicle, you're going to need to make some sort of down payment.
How Much Should I Put Down?
There is no concrete rule for this, but most drivers try to put down 10 to 20 percent. Then, they finance the rest and take out a loan to cover the rest of their new BMW car's cost.
When Should I Put Down More?
In some cases, it may be wiser to put down as much as possible. If you want to pay less in interest, making a larger down payment and taking out a smaller loan can help you do that.
This can be an especially wise idea for drivers who do not have the best credit. If you cannot qualify for the best incentives and the lowest APR financing arrangements, taking out a smaller loan can help you save significantly.
Can I Put My Trade-In Towards My Down Payment?
Yes, you can. If you have a vehicle to trade in, our dealership will give you money for it. If you're planning to finance a new BMW car, you can turn around and put that money right toward your down payment.
If you have any other questions about down payments or BMW financing, visit our luxury car dealership in Fort Washington, PA. Our car loan experts are ready to assist you.