Hyundai Financing Tips: Down Payment Guide

When purchasing a vehicle, the down payment is a major financing component. How much can you pay upfront? This is an essential budgeting component. The Hyundai finance center at Blaise Alexander Hyundai of State College can establish a recommended down payment based on your budget, loan eligibilities, and more.

Recommended Down Payment

The minimum down payment recommended is usually 10% of the vehicle’s base price, though this may vary depending on the car model, your credit score, and pre-approval status. However, our advice is to aim for 20% — if you can pay more, do so. We recommend paying as much as you can without dipping into existing emergency funds.

Why a Higher Down Payment Is Better

The more you pay upfront, the less you pay in monthly payments. For every $1,000 you invest in the down payment, you slash nearly $20 off your monthly payment. In addition, you may also be able to opt for a shorter repayment term. The quicker you’re able to fully pay off your loan, the less you pay in interest over the life of the loan.

Positive Equity

A higher down payment more quickly puts the loan into a positive equity. This is when the remaining loan amount is less than the vehicle’s worth. This is a good position because if you decide to sell or trade in the vehicle, you’ll make more than enough money to fully pay off the remaining amount you owe on the loan.

Get Assistance from Our Hyundai Finance Center in State College, PA

Our Hyundai finance center at Blaise Alexander Hyundai of State College can help you establish a budget based on your finance records and history. This includes a suggested down payment that’s in line with your budget and loan terms/conditions. Contact us today to get started!

Posted in Uncategorized | No Comments »