You may not have a bunch of money just laying around, or you may have your hard-earned cash working for you in other ways. When the time comes to buy a new Acura, it can be a little confusing. Do you need a down payment to buy an Acura, or can you make your purchase with zero down?
It’s understandable that it’s a little confusing. After all, nearly every car ad gives you car loan or lease payments accompanied by a down payment amount. Then again, you might’ve bought a car in the past without money down, and you aren’t sure why it would be important now.
A Down Payment is Not Mandatory
For most car buyers, Acura Financial Services can complete your application and loan without a down payment. Lenders like Acura Financial Services simply assess your ability to make the payments as well as check your past credit history. It helps them determine how much of a risk it is to provide a loan for your new Acura.
If you have a good credit history and you have the means to make your car payments, there’s a good chance you’ll be approved with zero down payment. If your history or income isn’t up to snuff, you may have to come up with money down to minimize your risk level.
A Down Payment Certainly Helps
Even if you qualify for an Acura loan or lease with zero down, it’s still a beneficial thing for you. Putting money towards the initial purchase helps you by:
- Lowering the payments – the money you put as a down payment lowers the overall amount you need to finance. That means you can pay lower payments over the same term to ease your financial burdens.
- Shortening the term – putting a chunk of money down on your new Acura could help you cut a year or more off your loan. It helps you build toward equity sooner.
- Helping cut negative equity – that initial period where your loan is worth more than your car can be a bother. When you put a down payment on your car loan, it cuts into your negative equity.
Bottom line: a down payment is a great thing if you’re able, but in most cases, it’s not mandatory. Find out for yourself if you qualify for a zero-down loan on a new Acura at Jay Wolfe Acura of Springfield!