If im going to buy a new auto from a dealer, does my down payment go towards the price of the car?

[missmo]

Im trying to buy a new car but i was wondering wat was meant when they say MSRP or 0% APR. If the cars price is at 15,000 and i give 5,000 down payment, does that mean the the price now drops to 10,000 instead of 15,000 . well after financing it , it will increase. but my point was if i place a large down payment does it go towards the price of the car to drop it down.?

[coryw68122]

Yes it will.

[SubNRG]

ask the pesky guys that walk around the dealer... theyll be more then willing to tell you and give you their card.

[BladesDestinyShanaAyumu]

yes it does

[4wheelernut]

Of course it does, if the car cost is 15,000 and you pay a down payment of 5,000 that will leave 10,000 for you to finance. Interest will be added to your financed figure only, the 10,000. Or, if they say 0% APR then no interest will be added, and you will only need to pay the 10,000 in instalments.



Hope this helped

[fw_lm045]

yes, the Down Payment goes towards the base price of the car. But if you have that much to put down, i would talk them down a we bit. Also if it is a new car, you know you can get them to take 1,000 off automatically just by asking, and if they say no deal, walk to the next lot. I hope you have shopped around. Don't just take what they have.

[FutureBasketballPlaya3]

yes if u put $5000 down then you would only be financing $10,000 for the vehicle

[musicman70913]

No your down payment does not lower the price of the car; but, it does lower the amount that you will finance. A 15,000 car with a 5,000 down payment is still 15,000; but 10,000 is what will be financed and you will pay less interest on 10,000 than you will 15,000; so a larger down payment  does help lower the cost.  Remember, tax, title and license will be added to the list price of the car.

[sunrayman123]

yes

[lee]

it really goes to the finance charges thats what really gets you MRSP  means Manufacturer's Suggested Retail Price.  thats what they suggest you pay for  o% APR means Annual Percentage Rate. 0% financing is obtainable by a wide variety of consumers and not limited to perfect credit. Different lenders have different criteria and I have seen people with scores in the low 600's still qualify for 0%. It's no scam, however it's not always the best option

[97Ek]

To answer your question...



When you buy a car you pay the agreed upon price, add tax, title and license and any other fees. Your down payment is then subtracted and that gives you the amount of the loan.



If the manufacturer is offering zero percent interest, they usually give you the choice of a rebate or the zero interest rate. Since the car is not that high to begin with and you are putting 5k. down...it may work to your advantage to take the rebate. You need to figure it both ways and see which saves you the most.



There is a simple auto loan calculator at bankrate.com...use it.



Also, shop around, car companies make 100s of thousands of the same model you are considering...don't buy the first one you see without comparing prices from several dealerships and check with your bank or credit union for the best interest rates.



Good luck