VW car finance

[Anonymous]

Is it necessary to have a down payment if credit is good, good paying job and consigner if needed

[maiden_girl]

A down payment isn't necessary under those circumstances but it is highly encouraged b/c it can significantly lower your monthly payments. The more you put down toward the purchase price is less you're financing...

A co-signing situation might require significantly more down if you don't qualify on your own.

[ImprovingYouth]

---

@maiden_girl wrote:

A down payment isn't necessary under those circumstances but it is highly encouraged b/c it can significantly lower your monthly payments. The more you put down toward the purchase price is less you're financing...

A co-signing situation might require significantly more down if you don't qualify on your own.

---

+1

The only time a dealer REQUIRES downpayment it to offset risk. If you have a low credit score for example, you carry high risk to the lender. In order to offset this risk of a loss on the loan, the dealer needs to make sure for a large portion of time the loan value stays below the real sellable value of the vehicle. Hence the downpayment.

[MovingForward_2012]

+1

[Jutz]

Agreed.  Most of the banks I've spoken with recently (Half a dozen or so banks and local credit unions) haven't said anything specifically about a downpayment.  As for dealer financing, I'd assume this would be in the underwriting if you were a fringe candidate.

VW Auto seems to be very flexible with good rates, and pulls EX it would seem most of the time.

[Jutz]

I forgot to add: A couple banks only finance up to 90% of the book value for the car you are looking to purchase.  I'd be willing to bet that in this buyer's market most cars you're looking at will be around that mark anyway, but you never know.  If you plan on rolling in another loan you're upside down on, you can bet on needing a downpayment if you have fringe credit.

[CreditJim]

I financed a certified used VW today with VW Credit. They pulled TU and my score was 664 (I've been rebuilding for the past couple of years). They offered me 4.74% good up to 60 months with zero down. I was quite impressed, given my score. I opted for 36 month terms, and will sell my old car privately and apply this towards the loan (the trade in appraisal was crappy, as was to be expected).

[Jutz]

Good to hear!  I'm looking at an Audi right now.  I believe I have financing secured through DCU at 5.49%, but hoping they can beat it at the dealer.

[ds3]

---

@Jutz wrote:

Good to hear!  I'm looking at an Audi right now.  I believe I have financing secured through DCU at 5.49%, but hoping they can beat it at the dealer.

---

I just bought a 2013 A4. MY TU came up with VW credit as 643, and I got the A4 at 6.4% at 88.25% of MSRP. This was with a loyalty bonus, as I already have a 2013 Passat I financed through them in October. So far, VW credit has been awesome...very easy to deal with, and far better rates than I could get anywhere else.