Friday, January 25, 2019

Why A Down Payment On Your New Vehicle Matters?

A vehicle whether new or used is a big investment, so before arriving make sure you understand the benefits of having a down payment. Being prepared is essential when buying your next vehicle. It helps ease anxiety and makes the entire process run as smooth as possible. To help you better prepare to shop for a new ride, the best car dealer in Mid-MO has provided a few reasons why a down payment on your next vehicle matters.

Benefits Of A Down Payment

Many people wonder if a down payment is necessary when purchasing their next vehicle. You can buy a vehicle without having a down payment, however, having a down payment has many benefits. Check out all the reasons you want to consider having a down payment before purchasing your next new ride!

Lower Your Overall Costs

Providing a down payment reduces the overall cost of the vehicle. Reducing the cost means lower monthly payments and overall better financing options. Lenders are able to offer lower interest rates when they see the buyer has money down on the purchase.  Lower interest rates will save you money during the lifetime of your vehicle loan.  When you put money towards your vehicle, it gives you options.  You can choose a shorter loan term or you can have an extended loan term with lower payments.  You have more options that make financing your next vehicle more affordable. 

Reduces The Impact Of Depreciation

A brand new vehicle will depreciate the most during the first year.  There are many benefits of buying a brand new vehicle, but the rate of depreciation on a new vehicle is hard for buyers to get past. Having a down payment on your brand new vehicle ensures you will drive off the lot without taking a loss.  When financing a vehicle having a down payment will help keep the value of your vehicle above the loan amount.  This results in equity down the road which will help if you decide to trade it on another vehicle.

What Can Be Used As A Down Payment?

You have options when it comes to having a down payment. We have two options that can help you decide which one is best for you. If you are not sure what you should do, give us a call and we can help you decide what is best for your situation. Every purchase is unique and the amount you should put down can vary. Check out a few options on how to come up with a down payment to get you in your next vehicle soon!

Vehicle Trade-In

If the current vehicle you have is paid off or has equity, it is a great option as a down payment.  The equity will be used towards the purchase of your next vehicle.  This option is a great way for people to afford buying without having to have cash in hand. The value of your vehicle will be determined based off of the condition of your vehicle. 


Making a vehicle purchase is a big decision that takes a lot of research and planning. Part of the planning process is knowing how much you can afford for a monthly payment. Once you determine that, you can back your way into the maximum amount you can afford to spend on the overall costs of the vehicle. One option to afford the exact vehicle you want is with a down payment. If you don't have a vehicle to trade-in, consider saving for a down payment. Have a down payment will lower your overall cost.  Leading up to purchasing your new vehicle, adjust your budget to save anywhere you can.  Once you have the amount you need, you are ready to move forward.

Best Dealership In Mid-Missouri

For a pleasant, no-pressure car shopping experience, visit Spieler’s Incorporated. Now that you know the importance a down payment makes when considering buying a car in Mid-MO, you can be better prepared to make a purchase after you find the right vehicle. For an enjoyable experience at a car dealer, visit Spieler’s Inc. in California, MO. We have no hidden fees— the price you agree on, is the price you pay! If there is a specific vehicle you are interested in, call us at 573-796-3129 to schedule a test drive.

Proudly Serving the Columbia,
Jefferson City, and California, MO Areas

1109 W. Buchanan St.
California, MO 65018
(888) 455-2107

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