The Pros and Cons of Paying a Low Down Payment on Used Cars in Greenville
For many used car buyers in Greenville, paying a down payment is a considerable hurdle. The income of Americans has not risen at the same rate as car prices have, and given our fixed monthly expenses, saving up for a sizable car down payment is truly a big ask. However, we live in a competitive market where multiple Greenville buy here pay here dealerships offer exciting deals, and one of those deals fortunately include the offer to pay a low down payment.
Before you jump to the opportunity of paying a low down, you should explore the pros and cons of the same. You must know the consequences of the choice you make and consider possible options to benefit from the pros and keep away the cons.
The pros of low down payment on used cars in Greenville
-You can buy a used car almost immediately
Consider a buy here pay here dealership with $500 down offers. You can pay just $500 to get financed and take ownership of a new used car almost immediately. In the context of used car prices, $500 is next to nothing, and depending on your income, you can easily save that amount within a month or two. So, a low down payment deal enables you to get your much-needed mode of transport now.
-You get to keep your cash reserve
Paying a low down payment also means that you get to keep most of what you have saved till date. You have your financial cushion intact and can take care of any emergency situation better while paying for your used car from the monthly income that you earn. Cash reserves take time to build. And liquidating a chunk of it to pay a high down can put many in difficult situations. Hence, low down offers can help you if you do not have much savings yet.
The cons of low down payment
-Higher possible interest rate due to the associated credit risk
When you pay a low down payment on used cars in Greenville, it means that you are taking a greater sum as a loan. And as per the rules of the free market, a huge loan generally means that the borrower is more likely to default. Thus, the lender charges a higher interest rate to offset the credit risk and the net expense for you behind the loan increases. A high down payment is a great way to keep your interest rate payable limited.
-Loan approval and choice of cars may get affected
A few Greenville buy here pay here dealerships ask you to pay a specific amount as down payment to approve your auto loan. And depending on the down payment you pay, the dealership has the right to decide how much loan it can give you based on your current income. A low down payment tends to limit your bad credit financing and used car options. Any lender will look to protect their money and these steps are not entirely unethical.
Find the best deal at Family Auto
Family Auto of Greenville is a buy here pay here dealership with $500 down options. You get an approved bad credit auto loan with just $500 as down payment and enjoy the benefits of low down with much hassle. At Family Auto, you find a range of used cars due to our large inventory and can buy the vehicle you want despite your overall budget. You can also limit your interest rate payable with our 3-year auto loans and pay a manageable sum every month to pay off your loan early.
If you can only pay a low down payment, Family Auto should be your dealer of choice. We work to get you the best financing and used car deals in the market by closely taking care of your requirements.
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