Glossary

Down Payment

Cash you put toward a vehicle purchase, reducing the loan amount.

Auto-loan down payments of 10-20% are standard. Higher down payments reduce LTV, lower your monthly payment, and shorten the time you're underwater on the loan.

Related terms

LTV (Loan-to-Value Ratio)

The loan amount divided by the vehicle's value, expressed as a percentage.

Trade-In Value

The amount a dealer offers for your current vehicle as credit toward a new one.

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