Large down payment

[angelic159]

I am looking to purchase a car for my son. The askin price is 11,200 and I will be putting around 7500 down. Will I have trouble getting the finance company (most likely NMAC) to accept only financing around 4500 to 5000?

[Anonymous]

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@angelic159 wrote:
I am looking to purchase a car for my son. The askin price is 11,200 and I will be putting around 7500 down. Will I have trouble getting the finance company (most likely NMAC) to accept only financing around 4500 to 5000?

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They do have minumum amounts they'll finance but you should be ok with that amount.

[angelic159]

Okay. Thanks!

[Anonymous]

Finance companies don't really like big down payments, reduces the interest which is their profit, the cost of servicing a loan has to be covered plus some profit for a loan to make sense to them.  Having said that why not go to a credit union?  They don't have the same issues that private lenders do and will value your business.  Personally with interest as low as it is through a credit union I am not sure it makes a ton of sense to put big chunks of cash down but I realize some folks prefer lower payments.  Try DCU they are popular here.

[Royalbacon]

Definitely try DCU.

I think the minimum they require for an auto loan is $1000 and they send you a blank check. So whatever your downpayment doesn't cover, you can write in the DCU blank check as long as it's less then what they approved you for. I have a credit score of around 675 and at the time my  credit card utilization was around 50% and when I signed up for DCU it said I was preapproved for a $20,000 auto loan. When I appleid for the auto loan a week later I just entered the amount of my current loan (I refinanced with DCU) of about $8600 and they had no problem approving me for that full amount at 2.74% interest (3.24% if I don't have direct deposit into my DCU checking account)

Also great as well being preapproved by a place like DCU before walking into the dealer, especially if you only have fair or average credit because the dealer will try to jack your interest rate way up if you go with financing through the dealer. I was approved at the dealer for my vehicle at almost 13% and I refinanced before the first payment was due with DCU at 2.74% interest.

And don't let anyone or the dealer try to talk you into financing the whole vehicle or putting a smaller down payment then you want to pay if you can afford a large down payment. Seriously, you come first and do whats best to you. Worrying whether or not the bank or the dealer will make "enough money" is not something you need to worry about. 

"Oh I can afford a large down payment but I shouldn't because the big corporate bank will make less money and the billionaire CEO and rich shareholders don't have enough money as it is" The most backwards thinking ever. No, just no.

[angelic159]

Thanks for the replies. I would rather have smaller payments with the intent to have the car paid off in 2 years. I am not too worried about my scores. They range from 730 to 754 depending on which of the 3 gets pulled. NMAC is offering 2.9% on used cars righ now I think so that who I am hoping will finance the loan.