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BMW financing offers a wide array of flexible and convenient ways to pay for a top-quality new or pre-owned vehicle. Before entering into a financing agreement, it can be helpful to understand how an initial down payment can determine how your new car fits into your budget. Here’s what you need to know about making a down payment on a vehicle at Fields BMW of Asheville.
How a Down Payment Affects Financing
There’s no hard and fast rule about how much needs to be paid as a down payment on a new or pre-owned BMW vehicle. In general, it’s advisable to pay between 10% and 20% of the car’s full value as an up-front down payment. Some special financing offers may bring this figure lower, with “no down payment” packages being especially enticing. However, before jumping at the lowest available down payment, consider that the amount of your down payment will determine key terms of your financing plan, from interest rate to the duration of a loan.
Advantages of a Higher Down Payment
While paying a down payment of 20% or more may seem like an intimidating financial prospect, there are several advantages to paying more upfront for your new vehicle. For one thing, a higher down payment can make it easier to secure a loan from an available financial institution, particularly for buyers with a shorter or less ideal credit history. Additionally, with a lower down payment, you may end up paying more than the value of your vehicle by the end of the loan term, making your vehicle a less-than-optimal investment.
Finance a BMW Vehicle Near Asheville, NC
With a little financial and advanced planning, settling on a down payment and finance plan can be a quick and simple process. To learn more about financing options that work for you and your family, contact Fields BMW of Asheville to speak with our finance team today!