A Down Payment is Your Friend
A down payment shouldn’t be seen as an obstacle to your auto loan. Rather, it should be viewed as something that really works to your advantage if you are dealing with poor credit.
In fact, the larger the down payment you are able to make, the more you are helping yourself out. Here are some of the benefits:
- It can help your chances of being approved because it lowers the loan to value ratio.
- A down payment reduces the amount of your monthly payment because it lowers the loan principal.
- Or it can make shortening the loan term possible so you can pay off the loan faster, which means paying much less in interest charges.
- It reduces the total amount of interest charges you’ll pay on the loan.
- A down payment reduces the likelihood of you being upside down, which makes it easier to trade out or refinance sooner and more easily.
As you can see, it works in your favor to provide a down payment.
If you are looking to get approved for an auto loan, you don’t have to worry about your credit holding you back when you use Deals on Wheels. You can get the car you need and a chance to rebuild your credit.