Fiat Shenanigans 🤡🌎 on Nostr: There's almost always a down payment for new vehicles, because the dealer won't ...

There's almost always a down payment for new vehicles, because the dealer won't normally sell below MSRP, and there's an immediate depreciation as soon as you take the vehicle home. The only exception is sometimes at the end of the year when the dealer is trying to clear out leftover inventory.

The best time to buy a new vehicle is November-December.

You should NEVER pay a down payment for a used vehicle. If the lender won't cover the whole sale price, then negotiate the price lower, and if the dealer won't go lower, shop elsewhere. Otherwise you're getting ripped off.

quoting
nevent1q…30td

Gibberish.

The balance of the loan must be less than the future sale value of the home so that when you default and they take you home they can recoup most of the remaining loan balance. That's why they require a down payment.

Same goes for cars, which only depreciate. As a rule of thumb, (and this is especially true of used vehicles), the amount of down payment you're required to put down is the amount that the dealership is overcharging you, which is why the bank won't cover it. You know you're getting a good price on a used vehicle if the bank is willing to cover 100% of the sale price.