How to Put Together a Down Payment for Your Car

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When you’re ready to buy a new car, putting together a down payment can help you get better financing terms, such as a lower interest rate and a lower overall monthly payment. When you buy from a dealership like Miami Lakes Kia, one of the top Miami South Kia dealerships, you will have your pick of quality vehicles with low prices, as well as flexible financing options to ensure that you can find a car you need to fit your budget — whether you have a down payment or not.

If you do want to put together a down payment to bring your monthly payment and the amount you’ll pay in interest over time, here are a few things you can do to make it easier:

Sell Your Old Car

Unless you’re a teenager buying your first car, chances are that you have a car currently. You can trade it in
to bring down the cost of your new car, or you can take your chances on the secondary market and see if you can sell it for more. You can then use that cash for your deposit. Depending on how old your car is and what kind of condition it’s in, you could get thousands of dollars for it, which would bring down the cost of a new car significantly.

Sell Unwanted Items

Your car may not be the only thing you can sell to raise the money you need for a deposit. Once you turn a critical eye to your belongings, you may be surprised to see how much you have in your home that is no longer needed. By selling these items, you will not only raise the money you need for a deposit, but will also clean out clutter from your home.

Save

Of course, the best way to get the money you need for any major purchase is to save. Set up a savings account with the highest interest rate you can find. You may even consider purchasing a money market account or a CD. Just make sure that whatever account you choose will let you access the money when you are ready to buy the car. Money market accounts and CDs have a minimum time limit, so plan ahead to avoid penalties.

If you can put together a down payment for your car, you can save on interest to lower your monthly payment and the amount you will pay over the life of the loan. However, if you can’t put together a down payment, you can still get great financing terms by shopping at places like Miami Lakes Kia, one of the top Miami South Kia dealerships. Visit us today to learn how we can help you.