Is it better to put down a large down payment or a lower payment?

Update:

Is it better to put a large down payment on a car lease or is better to make a lower lower down payment?

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  • Anonymous
    8 months ago

    you changed the basis of the question with your update 

    a lease is not a purchase but a modified rental 

    did you mean to confuse us or was it genuine ? 

    LEASING will dictate the upfront deposit 

    (what your calling a down payment incorrectly) 

    you only pay as they require if you and as you qualify for

    the monthly payment is not really a "payment" but rental fee

    you will not own the car ever unless you cash out (buy at the lease end) another huge amount 2/3rds of the purchase price approx 

    Leasing is for the well off with no worries about money 

    the only reason to lease is you always want a new car every 24 months 

    I would not lease 

    it is expensive and no tax advantage, that too is a myth for individuals

    and really little for business if any next to depreciation n schedule 

  • Bort
    Lv 6
    8 months ago

    The larger the down payment that's made the smaller the payments will be over the same time period of the loan. The smaller the down payment that's made the larger the scheduled payments will be for the length of the loan.

    It's wise to put as much of a down payment on a loan as you can.

  • 8 months ago

    Larger would be better - interest will be higher on your loan than on any savings account.

  • Anonymous
    8 months ago

    if you put a larger down payment the monthly payment will be less

    I see no way to lower payment without the lower principal the down payment makes,,, 

    It is always better to put the largest down payment you can ...no less than 25% of unborrowed money

    DEBT is bad always less debt is always good... 

    if you are worried the payment is too much,, do not buy 

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  • 8 months ago

    It is best to make the minimum down payment and negotiate the lowest monthly payments on a car lease.  Yes, the payments are negotiable.

  • Judy
    Lv 7
    8 months ago

    If you put down a larger down payment, you get a lower payment.

  • Anonymous
    8 months ago

    Do you even qualify to lease?  

    A bad idea even if you do.

  • 8 months ago

    edit: its better to move this out of the real estate category

    depends on your finances. minimum 20% is best, but you want to make sure you have minimum 6 months expenses saved after the purchase.

    if you buy a 100K house and have 500K in the bank, no reason you can't just pay cash.

    but same concept with a car, you still want savings for any other expenses

  • Anonymous
    8 months ago

    Do you want a large monthly payment or a small one?

  • Anonymous
    8 months ago

    Larger because then you've gotten more of the house paid off. Leads to lower mortgage monthly.

    You can put down as little as 3.5 percent but you "should" aim for 20 percent. Under 20 percent, you have to pay for private mortgage insurance.

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