There are many different factors to keep in mind when financing a Chrysler near Memphis. It can be quite intimidating if you’ve never been through it before, but the best advice you can take is to prepare ahead of time. The further ahead you plan, the better off you’ll be. If you know you’re going to need a car down the road, one of the best things you can do is to start saving up for it.
The reason is that if you can put more money down when you buy a new car, it can make the financing process much easier on you—and your wallet. Many people will say you should put down at least 20%, which may seem high, but it works out better for you in the long run. Here are just a few reasons why you should think about putting more money down the next time you buy a car.
Better Interest Rates
This can vary from lender to lender, but a substantial down payment makes you a lower risk to a lender because you’ve already given them a sizable chunk of the money they’re agreeing to lend you. When they think you’re a lower risk, then they’ll take it easy on your interest rate. It will also give you a better chance of loan approval for the same reasons.
Lower Monthly Payments
Chances are that you’ve got plenty of monthly payments already—from student loans to a mortgage—to worry about, which is why putting more money down when you buy your new car can be beneficial. You will get lower monthly payments on your Chrysler financing plan near Memphis because you owe less money overall. You can keep these payments low so that you have money to spend on other things.
Your goal is to own the vehicle outright and the faster you pay it off, the faster you will own it. Interesting fact: The reason that 20% down is often consider the benchmark is because that’s the average value that a new car depreciates over the first year. Put more money down up front and you’ll be that much closer to owning a new Chrysler!
Contact Mid South Auto Loans next time you want to finance a new car. To get started, you can give us a call today at (901) 316-3434.