One thing that remains on the minds of car buyers is solving the dilemma of down payment. Does the dealer require you to make a down payment? Are bad credit car buyers compelled to make a down payment? Is it really necessary? When the issue of down payment is occupying a fair share of your troubles, it is best to address it so that you can move along the process of buying a car.
Why Dealers demand Down Payment from a Car Buyer?
Dealers are interested in selling their cars and earning commission. They do not care how the money is paid? Most dealers have no part in the financing process. If you do not have a pre-approved auto loan, they can help you find an auto loan in the form of dealership financing. But, how much down payment you make is not their concern.
The amount of down payment depends on your loan amount. If the lender approves you for 우리카지노계열 a loan amount that covers the total cost of the car, 우리카지노쿠폰 you do not have to think about the down payment. Usually, lenders offer 70% -80% as LTV for your car. It means you have to bring money for the remaining amount.
Lenders demand higher down payment when your credit score is not excellent. A bad credit car buyer has a history of missed payments and it manifests higher risk to the lender. In order to reduce the risk factor, he may ask you bring at least 20% down payment.
What to do when you have no Money for Down Payment?
Use your Old Car
If you own a car without any lien on it, use it to reduce the cost of your new car. A cash down payment is not necessarily the only option with you. …