Things to Consider Before Buying a Car

There are many things to think about before you arrive at the #1 car dealership in Jefferson City, and drive home a new or used auto. Know your credit score, understand what you can afford, research any rebates available, know the value of your vehicle if doing a possible trade, and determine how much cash you have to put down. These factors can help determine the final sale price of the vehicle you want to purchase.

Your Credit Score

When financing a car, your credit score will be a big indicator of how much cash you will need to put down. If you have good credit history, your lender will generally not require you to put as much money down. A higher credit score shows the bank you are at lower risk to default on the loan. Keep in mind, for new cars, lenders may require as much as 20 percent down. If your credit history is not as good, the bank will require a higher down payment to secure the loan. If the car needs to be repossessed, the bank will have to sell the car, possibly at a loss.

How Much Cash to Put Down for a Vehicle

The more cash you have available to you, the more you can swing for a down payment. By allocating a larger down payment, you can lower your monthly payments without lengthening the term. In 2015, Edmunds reported the average down payment for new and used car purchases was about 10.4 percent. However, your down payment does not have to be a specific percentage. It should be what you can reasonably afford. Don't deplete your emergency fund or spend money designated for other recurring payments.

Down Payments Can Be More Than Cash

Down payments do not have to be all in cash. If you have another vehicle to trade in, it can count as part of your down payment, provided it has enough value. The dealer and owner of the vehicle will typically come to an agreement on the value, which is directly deducted from the purchase price of the new vehicle. Rebates and dealer incentives can also lower the final payments of the vehicle. If the dealership or automaker offers rebates, they will be subtracted from the purchase price as well.

Be Prepared Before You Make a Purchase

Make sure you take everything into consideration involving the sale, before you make the purchase at the new or used car dealership in Jefferson City. Know what you can afford, research your trade in options, and find out about any qualifying rebates. This can help you decide on a down payment that is comfortable for you. You can then get a quote for financing from the dealership or seek outside financing.

Spieler's Inc. Financing

Spieler's Inc. offers flexible car loan or lease programs. If you would like to explore options for auto financing in Jefferson City, our Dodge, RAM, Chrysler and Jeep financing experts can help find a loan to fit your needs. Contact us at (573) 796-3129 or stop by one of our locations in Jefferson City, Columbia, and Lebanon. We want your financing experience to be as easy as driving off the lot in your new vehicle.

Proudly Serving the Columbia,

Jefferson City, and California, MO Areas

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

Visit our website: www.spielersinc.com

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