A new or pre-owned Mazda vehicle is a reliable, high-performing vehicle you can count on to get where you’re going — and it’s also a significant investment. Our Mazda financing center works with drivers every day to put together terms that work best for their needs. Here’s what you need to know about a down payment when it comes to financing your vehicle, courtesy of Blaise Alexander Mazda State College.
How Much Should My Down Payment Be?
The general rule is that pre-owned cars should be bought with a down payment of 10% of the vehicle’s total value, while new cars should get a 20% down payment. However, these figures are minimums, not maximums — there are a wide variety of benefits to paying a larger down payment at the outset, including lower monthly payments, lower interest rates, and increasing your likelihood of securing a loan and building a better credit rating.
Do I Need a Down Payment?
While it’s possible to get a vehicle with no down payment, there are numerous reasons to avoid this tempting offer instead of paying as much as you comfortably can upfront. For one thing, with a smaller down payment, you’re more likely to end up upside down on your loan — that is, the value of your loan becoming greater than what your vehicle is worth, leaving you on the hook for an expensive pay-off that won’t return your investment.
Finance a MAZDA Vehicle at our Dealership in State College, PA
While financing a vehicle is a sophisticated procedure with a few different moving parts, our finance team is happy to work with you to keep it as smooth and economical as possible. Contact Blaise Alexander Mazda State College to meet with our finance professionals or test drive a new Mazda vehicle today!
