I am looking to buy a used car here in California, a 2020 mazda 6. The car is advertised for 19500. I have 10,000 to put down. Should I put the full 10,000 down or should I only put down 20% then put the rest down after starting to finance the car to ensure the money goes to the principle? Is what I am saying making sense? lol. I purchased a new vehicle before and to this day I am still wondering what happened to the down payment I put down. Someone please help.
How much do you have saved in total, including your $10,000 down payment?
If that’s the majority of your savings, I would put a smaller amount down (maybe taxes/fees/20%) and then finance the rest if you’re comfortable with the payment amount and total cost including financing.
It’s always good to have some money set aside for incidentals and things that may occur to the car.
I see. The money isn’t from my savings. My car was stolen and that’s what my insurance company gave me for the car.
Making $10k down will report to IRS, check that too. I’m not sure it’s for some states.
It’s depends on you, also check the warranties and covers that dealership try to load to your finance. Since the see lot of money down they will try to use that advantage
Your down payment reduces your total loan amount. If you put the full 10k down, you would have lower payments. Typically if you pay a large chunk later, and you apply it to the principle, you would have a higher monthly payment, but would pay it off sooner. So ultimately, it comes down to do you want lower payments for the duration of the loan, or do you want to pay it off sooner with higher payments
Def need lower monthly payments.
Hell no put 2000 down and get you a 4 year finance plan going and always pay a little for on your monthly payment so for example if your monthly payment are 370 always go for that 400 or even 450 if you can it will let you pay off more on the car and less on the interest and after taxes and all you can set the rest of that $8000 for emergencies.