Re: VW car finance
12-26-2012 08:17 AM
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.
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.