Get a car with 500 down payment

The larger the down payment on your vehicle, the better rates you will receive. Use Bankrate’s auto down payment calculator to estimate how much money you can save on your monthly payment by putting down money using cash, a trade-in or both.

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How much of a down payment should you make on a car? 

A down payment between 10 to 20 percent of the vehicle price is the general recommendation. But if you can afford a larger down payment, you can save even more money on interest payments over the life of the loan. By dropping the amount financed, you save some even before you start negotiating the car price. 

For drivers with poor credit, a down payment can prove to be instrumental in gaining approval and receiving competitive rates. It is an excellent way to show potential lenders your commitment to the purchase and paying the loan off. If you still can't get a great rate when you first buy with a down payment, you may be able to refinance later for a better rate.

In either case, be careful while shopping. By making sure the vehicle fits, and not just the payment, you will save in the long run.

What to consider when deciding on a down payment

A down payment is the money that you pay upfront towards a vehicle purchase. It can be any combination of cash and a trade-in. The more money you pay, the better off you will be. Consider the differences between a new and used vehicle when determining how much money to put down.  

Down payment on a new car 

New vehicles depreciate at a much faster rate than if you were to purchase used. A high down payment of 20 percent or more can help protect you from that loss of value. However, just because you can pay more cash upfront doesn't mean you should sign off on a vehicle that you cannot truly afford. Make sure your monthly payments, insurance and fuel costs are within your monthly budget 

Down payment on a used car

A used car, on the other hand, requires a less steep down payment. Because the value of a used vehicle has already undergone most of its depreciation, your down payment should be a minimum of 10 percent. 

Bankrate recommends 

If you do not currently have the financial stability or urgency for a new vehicle, it may be worth your while to save for a down payment before shopping for your vehicle. Consider creating a budget with that 10 to 20 percent number in mind before setting your sights on a vehicle loan.

Buying a car was indeed an expensive affair. But that era was many moons ago. Today, the US auto industry has thrived to such an extent that you can literally drive home a car for almost nothing. And that should serve as your cue to the question of whether you can buy a car with just $500 as a down payment. The answer is not only yes but you can get a top-quality vehicle as well, only if you choose the right buy here pay here dealer.

How is a $500 down payment possible?

New cars lose almost half of their initial cost in a matter of 2-3 years without much compromise on their functional integrity. When maintained right by its previous owner, a 3-year-old used car can serve you for a decade more with some repairs along the way. Thus, if you buy a 2015 or older Ford Fiesta now, the overall price will typically be around $7,500 and a good BHPH dealer can easily hand over the keys to you by accepting a mere $500 from you.

So, not all cars are available in the $500 down slot?

No, and it will be highly illogical to expect the same as well. A 3-year old Cadillac ATS or Audi A3 will not come under $25,000 and no dealer can sell you these models by taking just $500. However, if you are okay with older cars, say a 2008 or 2005 model, then the price can go down considerably for those cars to come in that $500 down slot. But the best buy here pay here dealers have other offers ready for you, like your old car exchange or use of referral money, by using which you can successfully bring down your down payment to $500.

Where is the catch here?

At genuine buy here pay here dealerships there are no hidden terms and conditions. Just like any other credit policy, when you choose the $500 down payment option, you will naturally have to take a higher amount of loan to cover the overall price of the car. This deal is for customers who are in dire need of a vehicle but are currently incapable of making a high down payment. You can always choose to pay more should you feel that you do not want a large credit amount.

In the end, with some acceptable compromises, it is indeed possible to buy a car with just $500. Optimize your requirements and get the vehicle you need from the top buy here pay here dealership.

Disclaimer

This is personal blog for Uncle Joe's of SC. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner is not be liable for any errors or omissions in this information nor for the availability of this information. The owner is not liable for any losses, injuries, or damages from the display or use of this information. Reader’s discretion is advised.

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