New Auto down payment

[mustang_revival]

As much as you can comfortably put down.

[A_A_G]

Put down $0 and get gap insurance.

[Rreemo]

It seems this has become a little different in recent years....I had always been of the impression that putting more down would net you a lower interest rate in the end. However when I bought my F150 last year, I had secured my own financing through my CU, and I was planning to put $25K down (little over $40K price tag), yet the finance guy was highly encouraging me to "save my money" and put less down....claiming he could beat the rate if I did.

I completely declined it, made him understand that a lower payment wasn't my goal, but paying it off earlier was. He did still come back with a better rate, so I did go with their financing, but still had to fend him off on all of the add-on crap....including gap ins. Maybe gap was his angle for trying to get me to put less down?....I dunno.

This was crooked assed GVF too, so who knows.

[sc281]

It seems this has become a little different in recent years....I had always been of the impression that putting more down would net you a lower interest rate in the end. However when I bought my F150 last year, I had secured my own financing through my CU, and I was planning to put $25K down (little over $40K price tag), yet the finance guy was highly encouraging me to "save my money" and put less down....claiming he could beat the rate if I did.

I completely declined it, made him understand that a lower payment wasn't my goal, but paying it off earlier was. He did still come back with a better rate, so I did go with their financing, but still had to fend him off on all of the add-on crap....including gap ins. Maybe gap was his angle for trying to get me to put less down?....I dunno.

This was crooked assed GVF too, so who knows.

Most lenders give an extra discount if the loan amount is over a certain threshold, say $30, 000 or so. Sure he gets paid for more loan amount, but you would've benefitted as well. Nothing stops you from making a $25k first payment.

As for the extra products, they are high margin, and where most of the commission for the dealer comes from.

[mschmoyer]

Most lenders give an extra discount if the loan amount is over a certain threshold, say $30, 000 or so. Sure he gets paid for more loan amount, but you would've benefitted as well. Nothing stops you from making a $25k first payment.

Sounds complicated and unnecessary. Just take out a $5k loan and put $25k down. How longs it gonna take to pay $5k off? You'll eat pennies in interest no matter what the rate is. Most people wouldn't hold themselves to the $25k payoff and would pay on that car for eternity. Especially $45k...

[sc281]

Sounds complicated and unnecessary. Just take out a $5k loan and put $25k down. How longs it gonna take to pay $5k off? You'll eat pennies in interest no matter what the rate is. Most people wouldn't hold themselves to the $25k payoff and would pay on that car for eternity. Especially $45k...

I was providing a rationale to explain what the finance guy was doing. He was thinking gap was the reason, and I explained that it was simpler than that.

And his loan amount was $15k, so that .50% or whatever saved would've been a couple hundred dollars over the life of the loan. Not a lot, but not pennies.

The $30k number in the post refers to the lender's discount threshold, not the vehicle sales price.

[David]

I put down half.

[HECDOGGIE]

Oddly enough, I got a better rate through a bank than my credit Union . It also has to do with which credit report they use .

[Captain Crawfish]

45k car!! Chooo choo motha freaka. Where would you like your payments
Sir? 48k probably gonna be in the 960s with no down payment

[01vnms4v]

Randolph Brooks, not local but I am sure you can get it done if I can get a home refinance done not living anywhere close to them.

https://www.rbfcu.org/NB/html/Reference/Rates/ConsumerRates.htm#CAR1

Print
Auto/Truck
Model Year Months Rates (APR%*) Payment per $
From: To: From: To:
1909 - 2014
" 24 1.650 12.990 42.39 47.54
" 36 1.650 12.990 28.49 33.69
" 48 1.650 12.990 21.54 26.82
" 60 1.650 12.990 17.38 22.75
" 66 1.650 12.990 15.86 21.28
" 72 1.990 13.990 14.75 20.60
" 84 4.750 15.750 14.02 19.72

There are two locations in the Dallas area, one in Plano and other in Frisco. Link below shows locations
https://www.rbfcu.org/BranchMaps/bra...&currentPage=1

Plano - 1801 Dallas Prkwy next to Cosco
Frisco - 4040 Preston Rd. in front of Acedemy

Cant beat 1.65%!!

FYI - They are all over SA, and Austin and they want to expand a lot in the Dallas area

[Torinoman]

Is it a Raptor?

[slow99]

Depends on the situation. I put as little down as possible - with rates this low, a down payment doesn't make sense for me.

[DON SVO]

Shop that rate. I bought my '11 5.0 used in March. I secured a good rate through a CU and it took only one "my CU is better" for him (finance guy) to get it down 2 points. I put 10% down and that knocked it down another 3 points. I got 2.89% over 48 months on a used car. Shop it, ask what is needed for a down payment to affect the rate beforehand and use it as leverage.

[hotrod66stang]

Randolph Brooks, not local but I am sure you can get it done if I can get a home refinance done not living anywhere close to them.

RBFCU is great. I bank with United Heritage C.U. out of Austin, formerly Bergstrom Federal Credit Union (Bergstrom A.F.B, which is now Austin-Bergstrom Int'l Airport). They compete on customers and rates all the time. UHCU has residency restrictions, but there is one branch in Tyler, if anyone is close to the area. A quick glance at their page shows "rates as low as 1.7%" with "up to 3 months no payments."

https://WWW.UHCU.ORG

[2011GT]

45k car!! Chooo choo motha freaka. Where would you like your payments
Sir? 48k probably gonna be in the 960s with no down payment

960!?! Good Lord, what is wrong with people?