by Expert literature everywhere might say that you should always pay a high down payment to buy a used car and the advice is not necessarily wrong, but if $500 is all you can afford now, you should not wait longer to get a used car. At dealerships like Family Auto of Taylors, you can get a car with $500 down payment. You can finance the rest with the dealership’s buy here pay here offer and take ownership of the vehicle. If you are still skeptical, here are 4 reasons to convince you. Analyze them logically and make a decision.
1. You need a used car, why wait?
Given all your current expenses, how long will take you to save up $3,000 or more that you can spare as down payment? Maybe 6 months? Or even a year? When you have $500 now, why wait that long to get a used car and start your life? In Family Auto, you get quality used carsand trucks in all price brackets. Our inventory is large enough to hold all popular models. Pay just $500 as down payment and pick a great car within your range.
2. Paying a down payment improves your chance of loan approval
Even if it is $500. It acts as a token of satisfaction for the dealership which shows them underlying financial strength. The credit risk associated with you reduces, the data on your credit report start mattering less, and the dealership finds motivation to approve your auto loan without much delay. So, try your best to pay a down payment while visiting car lots with buy here pay here -$500 is just enough.
3. You will have to pay less in interest
If you have approached a buy here pay here in Greenville, it means that you either hold a bad credit score or no credit score at all. It also means that you will have to pay a comparatively higher interest rate than banks on your bad credit auto loan. Now, the interest is calculated on the loan amount you take from the dealership. And the down payment you pay reduces the credit amount and hence, the interest payable.
4. No major dent on your existing savings
In the bid to pay a high down payment and following the trend, people often give up their savings or liquidate their assets. This does not make sense especially if you do not have enough funds to take care of unforeseen emergencies. Use Family Auto’s deal instead, get a car with $500 down payment. Keep your savings intact for the tough times and own a vehicle by then to help with transportation. $500 can fetch you more than you think. In Family Auto, you can buy a quality used car.