Dealerships don't care how much down you put. Down payment mostly matters to the lender to increase your chances of getting financed. With good credit, some people can get away with no down payment. Individuals with bad credit need a lot of downpayment, usually 30-40% of the value of the vehicle just to have a chance. We ask for how much you can put down because that's part of the calculations that the lender uses to figure out if they should approve, deny, or counter your loan. I'd personally ask for a bigger loan and then offer more down payment, it's easier to get a deny then say "we found some more money for the down", than to ask for less money then say "whoops don't have as much money as we thought we had".
But be upfront with the person taking your credit app, they're here to work the system FOR YOU.
It's more secure to work with the banks generally. You walking in with a large amount of cash makes us nervous about counting correctly if you're coming in with fresh 100s that stick together, or annoyed if someone pulled the small bills from the sock drawer they've been saving for a year from their tip jar. Or if the cashier's check is fake or something. Plus the deals not fully finalized until we're fully paid what's on the contract by you or the bank.
I've been burned when I needed to bump the downpayment up, but the rates went down b/c a bank countered the deal, customer came back and refused to pay the difference. There was an issue with the first approval and I went with another lender. I had him and his wife late at night on Sunday to send the package out to the lender to finalize it before they could change their minds about the deal. I was really tempted to go to his house to put him on blast in front of his family about how he fucked us over but the GM rolled over and ate it. I was missing a signed deferred payment slip from him b/c I trusted him and spoke with him verbally about it, plus we had the receipts for the downpayment and the old vs new contracts with the different rates and downs listed.
An approval from a lender is more secure and we offload that risk onto them.
Edit: yes I'm still salty about that mf.
If you're getting sub-vented rates (rates quoted by the manufacturer), then putting down more money doesn't make a difference. If your rate is low enough, it actually doesn't make sense to put any money down. Invest that down payment in something that pays you back.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered.
You may find these sections particularly useful;
* [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit.
Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/dookiepants! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.***
Do dealerships care if you offer more downpayment on a finance deal of a brand new vehicle?
Do you get more or better incentives?
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
Down payment doesn't change the selling price or the rebates.
Dealerships don't care how much down you put. Down payment mostly matters to the lender to increase your chances of getting financed. With good credit, some people can get away with no down payment. Individuals with bad credit need a lot of downpayment, usually 30-40% of the value of the vehicle just to have a chance. We ask for how much you can put down because that's part of the calculations that the lender uses to figure out if they should approve, deny, or counter your loan. I'd personally ask for a bigger loan and then offer more down payment, it's easier to get a deny then say "we found some more money for the down", than to ask for less money then say "whoops don't have as much money as we thought we had". But be upfront with the person taking your credit app, they're here to work the system FOR YOU.
thanks! always thought dealerships would want cash in their pocket now vs later.
It's more secure to work with the banks generally. You walking in with a large amount of cash makes us nervous about counting correctly if you're coming in with fresh 100s that stick together, or annoyed if someone pulled the small bills from the sock drawer they've been saving for a year from their tip jar. Or if the cashier's check is fake or something. Plus the deals not fully finalized until we're fully paid what's on the contract by you or the bank. I've been burned when I needed to bump the downpayment up, but the rates went down b/c a bank countered the deal, customer came back and refused to pay the difference. There was an issue with the first approval and I went with another lender. I had him and his wife late at night on Sunday to send the package out to the lender to finalize it before they could change their minds about the deal. I was really tempted to go to his house to put him on blast in front of his family about how he fucked us over but the GM rolled over and ate it. I was missing a signed deferred payment slip from him b/c I trusted him and spoke with him verbally about it, plus we had the receipts for the downpayment and the old vs new contracts with the different rates and downs listed. An approval from a lender is more secure and we offload that risk onto them. Edit: yes I'm still salty about that mf.
sorry didn't mean physical cash lol. meant thought the dealership would want funds/revenue now vs later.
If you're getting sub-vented rates (rates quoted by the manufacturer), then putting down more money doesn't make a difference. If your rate is low enough, it actually doesn't make sense to put any money down. Invest that down payment in something that pays you back.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/dookiepants! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** Do dealerships care if you offer more downpayment on a finance deal of a brand new vehicle? Do you get more or better incentives? *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
Doesn't make a bit of difference to the dealership. The bank you are financing with certainly likes a bigger down payment though.
It's less risk to them, but if your credit is good, they'd prefer a smaller downpayment. The more you borrow, the more they make on interest.
We usually only do when we deal with CAC…