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Bad Credit Car Loans
Bad Credit Auto Loans
No Credit Car Loans
No Credit Check Car Loans
Used ES300 in bad credit car loans
Used GS300 in bad credit car loans
Used GS400 in bad credit car loans
Used RX300 in bad credit car loans
Even No Credit Check Car Loans in bad credit car loans area
At Used Lexus Toronto we offer financing in bad credit car loans area
And of course many quality used Lexus' in bad credit car loans area
When applying for a bad credit car loan, how much down payment is enough?
If your credit is bad: Rethink your decision, as you will require a lot more down payment to get a good loan. If your credit is good keep on reading.
So you're thinking new: I would suggest a minimum of 20% down payment. The reason for this is simply what the car is worth once it is yours. Typically your car will depreciate 20% once you drive it off the lot. For example, you bought your car with no down payment, a month goes by and you get laid off, you must sell your car for survival. The only hope you have at this point is selling it, realistically you will only get about 80% of the asking price. Remember you made no down payment so, when you sell it you will still have a 20% debt for a car that you aren't even driving. This is called being “upside down”. Now that you know of it, I would suggest trying to avoid it. However if you were thinking used it is a good idea to put down at least 10% down payment, as a used car can be sold for not too much depreciation lost.
You have your down payment, time to get a loan: I would suggest shopping around before settling on a rate for a car loan. Show them that you've done your research and show them your 20% down payment. If after all that the rate is too high, let's say over 7%; come back in a few months with a better down payment. My magic number is 7%; the reason for this is easy to understand. If saving this money only gives you a rate of 4% and now spending it means you have to pay higher that 7% then it is not a good idea. Also remember, if you've saved over 40% for your down payment and you are getting a great rate with only 20% down, then save the other 20% and let it make money for you, by investing or saving towards something else.
In a few simple words -20% down payment (10% if used), but if the interest rate will be more that 7% then keep on saving. I strongly believe in paying cash for everything but the reality of this isn't always suitable for your financial situation. To make things easier on yourself, start putting those pennies away. Get an automatic saving account, you could save as little as $20 a week, it would come out directly from your chequings account and hardly be missed. Most importantly don't look at it until you are really in need of a car.
Thank you for reading this article it is brought to you by Used Lexus Toronto you can find us online at http://www.usedlexustoronto.ca we are your Used Lexus Toronto, we are your bad credit car loans service provider.
