Chevy Finance 101: A Guide to Down Payments

When applying for Chevy financing with our team at Scott Chevrolet, you may be a little unsure about how much to put down. Some drivers try to avoid making a down payment at all, but it gives you a vital head start on depreciation – and, luckily, down payments are easy to understand.

Why Make a Down Payment?

A down payment is a payment against the total cost of the vehicle before financing, which means you’re lowering the total amount of your loan. This can get you access to better financial offers, including lower interest rates. Just as importantly, it also reduces the amount on which the interest is charged, saving you even more in the long run.

How Much Should I Put Down?

If you’re wondering how large your down payment should be, follow the classic 20/4/10 rule. You should aim to put about 20 percent of the total cost of the car down. For used cars, it’s a good rule of thumb to try to cover 10 percent of the cost.

Can I Get Away with No Down Payment?

Some dealerships offer financing without a down payment, but this first big payment does more than just help you secure financing. Your down payment also gives you a head start on the depreciation a car goes through when it drives off the lot. Since a lot of depreciation happens right at the beginning of your loan period, without a down payment, you can quickly end up upside-down on the loan.

Speak to Our Chevy Financing Team in Allentown, PA

From finding the perfect Chevrolet car to applying for financing and getting behind the wheel, our team is ready to help you find your next great drive. Come visit us at Scott Chevrolet to explore our inventory or learn more about your financing options!

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