Down payments are a great way to lower your monthly costs and overall interest when purchasing a car. We’ve put together a Toyota financial guide to help you determine how much to put aside for a down payment on a vehicle from Sansone Toyota.
How Much Should My Down Payment Be?
Generally, it’s recommended that you aim for a 20 percent down payment on a new vehicle. However, you don’t have to commit to a down payment of this size, this just helps to limit how much you have to finance.
What are the Benefits of a Large Down Payment?
A large down payment limits how much you have to finance. This will reduce the amount of interest you have to pay. Additionally, a smaller auto loan will make it easier for you to get approved for financing, which can be especially helpful if you have a low credit score.
Plus, large down payments will lower your monthly payments. We have a Toyota payment calculator to help you see just how much it can affect your monthly costs. You can adjust the total price of the vehicle, your desired down payment, and the term to see how your payment would be affected.
Do I Need a Down Payment if I Have a Trade-in?
You can certainly use a trade-in as a down payment if you prefer. However, it’s important to determine how much positive equity you have in your vehicle. We are happy to give you an estimate of your trade-in value anytime.
Toyota Financing at Sansone Toyota
Want to know more about your down payment and financing options? We encourage you to stop in and chat with our team at Sansone Toyota today!
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