If you’re buying a car for the first time, the financing may feel overwhelming. Whether you’re buying a certified preowned vehicle or a new car, you’ll probably have to take out a loan and put money down to secure the financing. To help you navigate this new territory, the guide below explains what you need to know about buying a new car.

Why Put Money Down?

Putting money down shows the lender that you’re serious about buying the vehicle, and that you have enough financial flexibility to pay a portion up front. While you may be able to put as little as 10% down, you can increase that amount even more to reap a few benefits. For one, you’ll spend less on interest over the lifetime of the loan. You also have a better chance of securing the loan, and your monthly payments on the car will be lower. Lastly, you’ll lower the chances of owing more than the car can fetch on resale.

How Much Money Should You Put Down?

Ideally, you should look to put down at least 20%; although, putting more down if you can afford to is sensible. If you’re struggling to save enough for a down payment, you should find a dealer that allows trade-ins. You can get money toward your down-payment by swapping your old car, and you won’t have to worry about selling the car independently.

What to Look for in a Loan Agreement

To make sure you’re getting a new car loan with someone you can trust, you should understand the agreements in the loan. The APR stands for average percentage rate and indicates how much interest will compound on your unpaid loan amount. Even a percent or two difference could mean thousands of dollars more. You should also understand how long the loan runs, how much you’ll pay each month, and whether you’ll be penalized for paying the loan off early.

If you want to buy your new car from a dealer you can trust, visit Jackson Chevrolet Buick GMC Based in Lafayette, GA, and serving North Georgia and Chattanooga, they sell a wide range of new and used vehicles. Plus, they offer financing options to help you pay for it. You can trade-in your old vehicle and get financing through the dealership. If you have any questions, call (706) 638-4222 or visit them online.