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DownPayment A downpayment reduces the amount you need to finance, which lowers monthly payments. A larger downpayment now can mean less strain later. Monthly Loan Payments If you’re financing, the monthly payment amount depends on the loan’s term and interest rate.
Imagine financing like this : It’s a way to break up the cost of the car into smaller, more manageable paymentsspread out over time. The "Four-Square" Method This is a common sales tactic where the dealer uses a worksheet divided into four parts: your trade-in value, the purchase price, the downpayment, and monthly payments.
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