Do I Need a Down Payment for my New Toyota?
The car ads are all around. On television, there’s an ad describing a new Corolla or Camry, RAV4 or Tacoma. The monthly payment seems almost too good to be true, but it isn’t. The ad shows a bit more information alongside the payment price. It’s the down payment.
If you’re a little tight of cash on hand, that can be a downer. You might really want or even need that new Toyota, but you can’t necessarily come up with the cash for a down payment. So the question is…
Do you NEED a Down Payment?
A Down Payment is GOOD…
It’s a fantastic idea to have a down payment. It helps you secure financing because the lender isn’t providing 100 percent of the funds for you to purchase the car. It also demonstrates that you have your finances in order, at least in part. That gives the bank reassurance that you’ll be responsible enough to make your payments. As well, a down payment helps lower your monthly payments or shorten your loan term because the amount of money you’re borrowing is less.
But Is It Required?
However, a down payment isn’t required for many buyers. That’s especially true of customers with credit in good standing and with a healthy amount of reliable income.
Buying a Toyota IS possible with no money down. As well, it’s not that hard to qualify. It’s especially beneficial if you’d prefer to keep your cash for other purchases, or for a rainy day fund. Another great reason to buy a Toyota with no down payment (should you qualify) is for the low interest rates you can receive from Toyota Financial Services. You can put your cash to work for you, earning more interest than the rates as low as 0.9% you’ll pay on your car loan.
Is a down payment a good idea? In most cases, yes! In some credit situations it’s even required. But for many Toyota buyers, you can buy the car you want with zero money down. Find out more from the product advisors at Jay Wolfe Toyota of West County. We’d love to help you get into the Toyota you’ve always wanted, and at a price you’ll love.