Bigger Down Payment = Lower Price?
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New User
Joined: May 2005
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Bigger Down Payment = Lower Price?
Is it true that a larger down payment is more attractive to a dealer? Or, would the dealer make more on a larger amount financed?
I have roughly half the price ready to go for a down payment for a new F-150, just trying to see if I can get that price tag slightly lower.
I have roughly half the price ready to go for a down payment for a new F-150, just trying to see if I can get that price tag slightly lower.
Senior User
Joined: Jan 2005
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I always worry about the price of the new vehicle first, then usually let the dealer know my intent to trade, amount of down payment, finance, etc. I see you are in NY, I highly recommend the FTE purchase program 
Jeff is awesome to deal with.
Jeff is awesome to deal with.
Hotshot
Joined: Apr 2004
Posts: 13,589
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From: NW burbs of chicago
Definitly read this thread. https://www.ford-trucks.com/forums/s...d.php?t=217560
I dont see how a larger down payment will lower the price
I dont see how a larger down payment will lower the price
Lead Driver
Joined: Apr 2002
Posts: 7,746
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From: Tampa Bay, FL USA
Down payment and purchase price are definitely two separate parts of the transaction. It doesn't make a difference to me, but there definitely are dealers that will try to charge you MORE if they know you have a large down payment. Why? 1) Bigger down payment = lower monthly payment, therefore you can afford to pay a little more for the truck. 2) The more you finance through the dealer, the more they earn on the financing. You pay cash, they earn $0; finance 100% and they get a nice commission check from the bank. So, the LESS you finance, the more likely they are to want to charge you more upfront for the truck, IF THEY KNOW THAT UPFRONT. Best advice: hold your cards close to your chest when it comes to rate, down payment and monthly payment. The customer that pays the most is the one that says, "just get my payment to $300 a month and I'll buy it." BIG mistake. You should know before going in how much you can borrow, and what the interest rate and monthly payments are, so you know what you can afford.
Post Fiend
Joined: Feb 2004
Posts: 10,728
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From: Damascus-Boring, Ore
As usual, Jeff nailed it. The purchase and the financing are two seperate transactions, and should be handled as such. It doesn't hurt to disclose your intent to trade something in up front- the trade factors in as part of the deal, especially if it's something the dealer plans on keeping and retailing.
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galaxie641
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Feb 2, 2014 09:36 PM
