The car ads are all over the television, newspapers, and online. The offers tell of low monthly payments but there’s a disclaimer. It’s with a down payment. It could be $1,995 down, $1,000 down, or even $2,500 or more as a down payment. But is it necessary when you’re financing or leasing a Honda?
Down Payments are Helpful…
Plenty of reasons exist for putting cash down on your new or used Honda. It reduces your monthly payment and it can shorten your loan length. Because the amount of money you need to borrow is lowered, you can expect your payments to be lower also. Typically, for every $1,000 down, your payment goes down approximately $15.
A down payment might even make your loan possible where it would otherwise not be. If a lender caps your financing limit just short of the purchase price, chipping in money from your own pocket can seal the deal in your favor.
… But Not Always Required
However, a down payment isn’t always necessary when you’re financing or leasing from Jay Wolfe Honda. Most customers – even with little or no credit – can get a $0 down car loan or lease in many conditions. With the proper income to service the loan, money down is often not necessary.
Also, new Honda models sometimes offer zero percent interest at times throughout the year, especially at model year-end clearout events. When there’s no interest to pay, it makes more sense to finance the whole amount instead of putting money down on the loan.
If you’re in the market for a new or used Honda, the financing professionals at Jay Wolfe Honda can give you the right advice for your situation. We’ll go over your credit history with you and perform a pre-approval application for you to determine if a down payment is required or beneficial in your circumstances.