Financing a car

[DrewChan]

My SO is buying a car, we are debating her finances and how much of a deposit she can pay.

How much of a difference is made between paying a deposit of 20k up front vs taking the finance and paying 20k after the 1st month?

 

[gjm]

My SO is buying a car, we are debating her finances and how much of a deposit she can pay.

How much of a difference is made between paying a deposit of 20k up front vs taking the finance and paying 20k after the 1st month?

It might make a difference in the interest rate the bank is offering.

 

[DrewChan]

She phoned finance person now, finance person claims that capital payments will change installment amount but not the term. Surely you should have a choice whether you want term changed when paying in?

 

[TehStranger]

She phoned finance person now, finance person claims that capital payments will change installment amount but not the term. Surely you should have a choice whether you want term changed when paying in?

You can elect to reduce the term and keep payments the same, or reduce monthly payments and keep the term the same.

 

[the eskimo]

She phoned finance person now, finance person claims that capital payments will change installment amount but not the term. Surely you should have a choice whether you want term changed when paying in?

If you keep paying the original calculated instalment, your term would reduce accordingly.

 

[DrewChan]

You can elect to reduce the term and keep payments the same, or reduce monthly payments and keep the term the same.

Yeah thought so, thanks