Should I put money down?

Here's one of the important questions about buying your next vehicle. Should I put money down? The answer is a big YES! The first thing you have to look at is if you are buying a new car for example there are huge upsides like full factory warranty, perfect condition, sub-rated APR's and factory incentives. They also come with depreciation. It's true that new car will loose value as soon as you leave the dealership up maybe 15%. The reason for this is that the vehicle has been sold and the dealership punches that car sold to you. This tells the factory that the vehicle has been sold and at that point the vehicle loses all incentives from the factory and becomes a Pre-owned vehicle. With out any money down you would put your self in a position to owe more on your new vehicle then it's current value. A simplified example is you pay 20,000.00 for the car and 10% lose in value means that's 18,000.00 but don't forget you didn't put any money down so you financed you Tax's, Licensing, and applicable fee's. You can see very easily this putting you Up-side Down in your currently brand new car. Now let's look at the same thing in a Pre-owned vehicle. You run into the same thing, with out paying your Tax's, Licensing, and applicable fee's your starting in the wrong direction. Then add that when you purchase a Pre-owned or Certified Pre-owned vehicle the dealership pays for that car to have a inspection for safety and spends money making that car retail ready; you in turn pay retail value for that vehicle. So if you wanted to trade that car later on down the road you would get trade in value for it. Unless you sale the car yourself which can be a huge hassle. The next point is that because you put down 15 to 20% you also could get a lower APR from the bank by showing a bigger investment in the purchase. The point is money down protects you from being up-side down and can save you money in the long run. If you cannot put money down make sure to ask about GAP insurance this will be a godsend; it will protect you have an accident in your vehicle. If you owe 20,000.00 on the vehicle and it's valued at 16,000.00 by your insurance company GAP will pay the difference between what you owe and what it's worth. Imagine without it you could have a car that is totaled and you still owe 4,000.00 Dollars; it happens all the time. So save up a down payment and if you can't get some protection to cover yourself.