Here are five ways that could help you create more money to put toward a down payment on a vehicle:
Defer a payment – Do you currently have an auto loan or house financed? Many lenders allow you to defer a payment for a month by just paying the interest instead. With the average home loan payment at around $1,000 this could be a great way to gather funds for a down payment without borrowing additional money.
Credit cards – Most of us forget that we can use our credit card or a relative’s credit card as a means of providing a down payment. Depending on your billing cycle, you may have up to 30 days to pay off the credit card without paying any interest.
Tax refunds – Are you getting money back on taxes? Many people know that they’ve had taxes withheld throughout the year and if you get your taxes filed you can sometimes get a refund back to use for the down payment. With electronic filing and with the many companies that offer refund loans, you can sometimes have your refund money on the same day.
Note loans – In any market there are small loan organizations and companies. Some will offer up to $900.00 loans without collateral. In some situations this money can be used as a down payment. Check with the company to see what the expenses and the restrictions are.
Other sources – You could always ask a parent or a sibling for a loan, but sometimes the auto dealer has its own ways to help. Some dealers will pay customers a referral fee for referring a customer who also buys a vehicle. Imagine if you knew a friend who was also looking for a vehicle, you could refer them to a dealer and, if they purchased, you could earn some extra money to put toward a down payment on your own vehicle. Check with your salesperson to see if the dealer has a referral program.
In summary, there are sources to help you “find” money for a down payment. So don’t let a lender’s down payment requirement keep you from owning the safe, reliable transportation you want.
Source: Bob Hurley Ford
Copyright 2011 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.