Calculating Your Down Payment on a Pre-Owned BMW Car

Financing a pre-owned BMW vehicle means knowing how much to put on your down payment. Depending on your financial situation, putting more money down when you sign for the car may be more beneficial. Learn how to calculate your down payment on a pre-owned BMW car with these tips, courtesy of the BMW of Sherman Oaks team.

What Is a Down Payment?

When you sign a financing deal at our BMW dealership, you’ll often need to apply a down payment on your vehicle. This is a fixed payment you make towards the car before you can take it off the lot. This is often a flexible amount agreed upon by you and our dealership, which is decided before you sign the paperwork.

What Should I Put Down?

The general rule of thumb is to put at least 20% of the buying price down on your vehicle. This amount shows your commitment to the car and reduces your overall principal. That means you’ll pay less in monthly payments compared to putting no down payment on the vehicle. If you can afford to do so, we recommend putting more than 20% down to reduce monthly payments further.

Why Are Down Payments Helpful?

In addition to reducing your monthly payments, a larger down payment gives you a better foothold on your financing from the start. By lowering your overall principal, you won’t pay as much interest over the same term lengths.

Finance a Pre-Owned BMW Vehicle in Sherman Oaks, CA

Our finance team can help you find the best deals on a pre-owned BMW model. Contact BMW of Sherman Oaks today to browse our pre-owned vehicle selection.