Expert Perspectives
The down payment is a crucial factor in determining your monthly car payments and overall financing costs. A higher down payment can significantly reduce the amount you'll need to borrow, leading to lower interest charges and potentially a shorter loan term. For example, putting down 20% on a $30,000 vehicle could lower your monthly payments by hundreds of dollars compared to a smaller 10% down payment.
Key Insights
When you use the Down Payment Impact Tool, on the flip side, a lower down payment means you'll have more cash on hand for other expenses, but you'll end up paying more in interest over the life of the loan. It's all about finding the right balance based on your financial situation and goals.
