Let’s talk about Cardinal Buick GMC $49 down. As we know, a classic advice on car purchase may suggest you to make a huge down payment. In a way, it is still a solid advice because hefty down payment could lower the amount of your monthly payment and lessen the chance of getting you upside down in case the vehicle is traded off or totaled before it is even paid off. However, is it still good to follow if you’re about to lease a car? Is making a big down payment is ideal, for example?
Lease payment amount is basically made up from estimating the difference between the car selling price and residual value. Some other factors such as interest rates, various fees and taxes might be burden the payment amount of your lease. If you’re planning to do Cardinal Buick GMC $49 lease, or any other car with low selling price or money factor, the advice above might not apply. Here are several common misleading reasons to give big down payment.
- To get lower monthly payment: while it is true that you can reduce monthly lease payment by making significant down payment, it won’t make a ton of difference. The interest charge is negligible because there is low money factor.
- To minimize the interest rates: once again, bigger Cardinal Buick GMC $49 down payment won’t result in lower money factor. That’s just basic principle of car leasing.
- To avoid trap of upside down: you will be offered and need gap insurance when leasing a car. It lessens the chances of being hooked for unpaid balance in case the leased vehicle is stolen or totaled. Therefore, when there’s a difference in the loan amount and vehicle value at the end of the lease, it’d be the bank or insurance provider’s problem instead of yours.
- To get the approvement on loan: if a borrower had a good credit, they don’t need to make sizable down payment to be approved to get best rates offers.
In conclusion, handing out any amount of down payment may make sense. After all, not all leases available have special low money factors even if most of them do. A high money factor vehicle may require a significant amount of down payment as well. However, for a modestly priced car, providing little to zero upfront money might be a better option to go with by considering several reasons of Cardinal Buick GMC $49 down payment listed above.
