Choosing your dream Acura model is exciting, but it raises some questions. One of the most important: How much should my down payment be for Acura financing? While there isn’t a one-size-fits-all answer to this question, understanding how the down payment works is a great way to help you reach your financing goals. Our team of finance experts at Acura of Sherman Oaks is happy to provide guidance to help you maximize your down payment.
How to Make Your Monthly Payment as Low as Possible
If your goal with financing an Acura car is to have a low monthly payment, the way to do this is through a larger down payment. This is because a greater upfront investment reduces the total principal amount you need to finance. Because you are borrowing less money overall, your monthly payment will be lower.
How to Lower Your Interest Rate
Lenders often view larger down payments as a sign of financial stability and lower risk. When you pay more upfront (a common benchmark is 20 percent of the total price of the vehicle), you may qualify for better loan terms and even a lower APR. A better interest rate can help you save money over the life of the loan.
The Path to Long-Term Equity
The final advantage of making a sizeable down payment is minimizing vehicle depreciation. While all new cars lose value over time, a large down payment creates immediate equity in your vehicle. This helps prevent you from being upside down on the loan.
Finance an Acura Car in Sherman Oaks, CA
Here at Acura of Sherman Oaks, our finance team will work with you whether you make a large down payment or a small one. Contact us or visit our dealership to discuss your Acura financing options!
