$500 Down Car Lot

Borrowers on a limited budget can take advantage of a $500 down car lot rather than attempt to save up or borrow a down payment. $500 down lots exist to help borrowers that can afford the monthly payments on a car but cannot afford to spend a large amount of cash immediately for their vehicle. Because of $500 down car lots and other cheap Windsor car lots, down payments are becoming rarer and many people are purchasing cars with no down payment at all.

Why Down Payments Are Traditionally Required

In the past most people in Ontario received their car loans through a bank. Banks required down payments for two reasons. If the bank did not feel comfortable financing the whole amount of the car for the borrower then the borrower would need to put down the difference between the car in the form of a down payment. Also, if the borrower did not put down any cash collateral the bank would not be able to see the borrower's dedication to the loan. Since banks were the only way to get a loan for many people they were able to dictate their own terms regarding the loans.

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Why Down Payments Are No Longer Required

Banks have steadily become more strict with their requirements for borrowers which has led borrowers away from banks for their car loans. There are now dedicated companies that offer only automobile loans and dealerships that offer in-house financing on the lot. Both of these options have allowed these alternative lenders to begin setting their own requirements and many of these new lenders do not require a down payment at all or simply require a low down payment. Through our online application we will make sure that you are going to get the best car loans with a low down payment at our dealership since we offer our alternative source of help.

Should a Borrower Put More Down?

Most borrowers are aware that the more payment they put down the less they will pay in interest but this isn't always feasible. With car interest rates already extremely low the down payment now means less. While borrowers should usually put down as much as they can, buying a cheaper car is often an easier way to save on the amount of the loan and the amount of interest that the borrower is paying. There are many inexpensive or used vehicles that are serviceable and safe and these can be a valid alternative to putting more down on a loan.