Auto Loan Buyers Guide - Unneeded Down Payment Requirements
Unneeded Down Payment Requirements
Is the dealer requiring an extremely large down payment from you? Did you get a Retail Value on the car you wish to purchase to make sure they are not selling it to you above market value?
One of the biggest dealer maneuvers is to increase the sales price over the market price and then require the customer to pay the difference as a down payment. The lender, in most cases, will allow financing on the vehicle up to 115/120% of the actual market value of the car.
The bottom line to remember is: Be sure that you are required to pay the down payment because of your past credit experience and NOT because the dealer is hoping to make a killing on the sale.
