Relationship Between Your Down Payment & Your Monthly Payment

By DriveCasa Team | Posted in Down Payments, Monthly Payments on Wednesday, March 22nd, 2017 at 11:52 pm

Drive Casa Down & Monthly Car Payments

Are you planning on buying a used car within the next month or so? If so, here are a few things you should know before purchasing a used vehicle, especially if you have bad credit or no credit.


Your down payment is a very important part of the deal. Having a higher down payment not only helps keep your monthly payments affordable. It also usually gives you a larger selection of used cars, trucks or SUVs to choose from. Not to mention, your down payment lowers the total amount financed. So a larger down payment saves you on interest and finance charges. Quite simply, the larger the down payment, the more you save in the long run (your term).


We truly care about our customers, and do everything we can to make sure you can afford the vehicle you want. Affordability is all about your income and expenses. Since we provide in-house financing, we want to make sure you can easily afford the car payment & regular maintenance. Therefore, if your monthly income is low, we’ll work with you to create a payment plan that you can afford. See our budget worksheet here.


Most experts advise keeping your car payment to no more than 20% of your total monthly income. It’s a simple calculation that you should be aware of before you step foot on the lot of a car dealership. Knowing this figure helps you make an intellectual decision on your vehicle purchase instead of an emotional decision. It’s too easy to fall in love with a vehicle and put yourself in a tough position financially, so make sure you know what payments you can afford before you start looking!


If you have a lower income, a larger down payment can help keep your monthly payments at a level that works for you. Yes, our down payments average around $1,200, but you may want to put more down to keep your monthly payment at 20% or less of your monthly income. See Affordability Calculator to help you make a smart decision.

Why is the down payment so critical? The dollar amount you put down on that dreamy used SUV or sedan is deducted from the total cost of the vehicle and other fees. This means you save interest and finance charges. Thus, your monthly payment could be significantly lower with a larger down payment.


    1. TAX REFUND – This time of year many of our customers will use their tax refund to increase the size of their down payment. Our partners, R & R Tax and Bookkeeping services are available to find every little bit of refund owed to you from the IRS. Visit R & R Tax and Bookkeeping Services website for more information or give us a call to schedule an appointment.
    2. TRADE-IN VALUE – If you currently own a vehicle, and want to purchase a newer used vehicle, you can use your current vehicle towards your down payment. However, if you are going to trade-in a vehicle, make sure to research the value of your trade-in before you go to a car lot.
    3. LOWER COST VEHICLE – Another way we can keep your monthly payment low is by selecting a lower cost vehicle. This may not be your favorite solution, but we have many quality used vehicles in every price range to give you more options.

Last but not least, don’t forget that we provide complimentary oil changes for the first twelve months of ownership, as well as a 12,000 mile/12 month limited warranty. See Our Promise for details.

Keeping you on the road. Driving you happy.



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