There are many factors to keep in mind when purchasing a pre-owned Cadillac vehicle. You have to consider your wants, needs, and budget. Our experts at Carroll Cadillac of North Orlando are weighing in on the down payment you should also consider.
Do I Have to Make a Down Payment?
A down payment isn’t a requirement for every buyer. However, depending on your buying criteria, you may need to make one to establish yourself as a responsible buyer.
How Much Should My Down Payment Be?
Experts recommend that you aim to pay at least 20 percent down. While many recommend a down payment of at least 10 percent when shopping for a pre-owned car, more is always better, as you’ll see below. In any event, calculating your down payment is simple; multiply your vehicle’s total price by the percentage as a decimal value, so .10 for a ten percent down payment, for example.
Why is a Pre-Owned Down Payment Smaller?
Down payments are intended to limit the amount of your used car loan, which also reduces how much interest you pay. They’re also helpful to keep you from becoming upside down in your loan. Since a pre-owned vehicle doesn’t depreciate as quickly as a new one, negative equity isn’t as significant of a risk.
How Do I Know if I’m Spending Enough?
Since a down payment lowers your financing amount, it can also help reduce your monthly payments or limit your total loan length. You can use an auto payment calculator to see how much of a down payment you need to make to align your monthly payments with your budget.
Visit Our Sanford, FL, Cadillac Dealership to Shop Today
When you’re financing a pre-owned Cadillac vehicle, a down payment can be very beneficial. If you’re still uncertain how much you need to save, we can help. Visit Carroll Cadillac of North Orlando to chat with our team today!
