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How much should your down payment be? 

Are you in the market for a new vehicle? If so, you have probably realized that they are expensive right now. You might be looking at the price tag, wondering how you can possibly afford to purchase a new car. The good news is that you do not need to pay for it outright. You do not necessarily need to pay for the entire value of the car when you sign the contract. You can put some money down, take out a loan for the rest, and drive off with your vehicle today. How much money should you put down for your vehicle? We are Gerry Lane Cadillac, and it would be our pleasure to help you find your next ride.
Finance Department
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1. Your Credit Score
First, you need to put down enough money to ensure you get approved for the rest of the loan. Your approval is going to hinge on your credit score. Different lenders will have different thresholds that they use regarding your credit score and car purchase capabilities, but the higher your credit score, the less money you have to put down. You should ask for a free copy of your credit report from one of the three major credit bureaus before you apply for a car loan. That way, you have an idea of what your credit score is, and you can make sure that your credit report is accurate.

2. The Price of the Car
Next, you need to take a look at the price of the car. The price of the car matters because it influences how much money you have to put down. The more expensive the car, the more money you will have to put down before you are allowed to drive away with it. If you have questions about how much of a car you can afford, it would be our pleasure to work with you. We have cars available for people on all types of budgets, and it would be our pleasure to help you find a car that is not only affordable but also right for your driving style.

3. The Issue of Insurance
You also need to think about how your down payment is going to impact insurance. Cars depreciate in value. It might appreciate faster than you pay off the balance of your loan. You must make sure you have the right insurance policy, and that could include gap insurance. If you don't put enough money down, and you end up in a serious motor vehicle accident, your vehicle might not be worth enough money to pay off the balance of your loan. The more money you put down, the smaller the gap is between the value of the car and the balance on your loan. That way, you do not end up underwater on a loan for a vehicle you no longer have, should you be involved in a total loss accident.

4. The Loan Horizon
Finally, you also need to think about how quickly you want to pay off the loan. This is known as the loan horizon. At Gerry Lane Cadillac, we can write your loan for as short or as long as you would like. If you want to make the monthly payments smaller, you might be interested in extending the loan over five years. If you want to pay off the loan in a single year, we can write the loan for 12 months instead. It would be our pleasure to talk with you about your options.

Call Gerry Lane Cadillac Today
Ultimately, there are a lot of factors you should consider if you are wondering how much money you should put down for your next car. Because there are so many options out there, you should trust a professional to help you. We are Gerry Lane Cadillac, and it would be our pleasure to help you find your next vehicle. We understand that you may not have enough money to pay for your car outright, and we can work with you to make the price of your car more affordable. We can also talk with you about financing options. Contact us today to speak to a member of our team and let us help you find your next car.

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                      Gerry Lane Cadillac

                      10945 REIGER ROAD BATON ROUGE LA 70809-4546 US
                      Sales (225) 341-3066 Service (225) 341-3067 Parts (225) 297-5377
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