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Down Payments Drive Savings

When financing a car, a large down payment can initially sting, but it’s a benefit over the long haul. Cars depreciate and before you know it, you may owe more on a vehicle than it’s worth, known as “negative equity,” a side effect of long terms and small down payments. The more you put down, the quicker you’ll reach positive equity, and the lower your monthly payments will be.

Trading in a vehicle helps further reduce payments. Just make sure to negotiate your trade separately from the purchase price and financing package.