How do I pay for a vehicle with cash and financing?
I'm a first-time car buyer. I want to know how to pay for a car if I'm financing through a credit union but making a down payment in cash? Do I give the down payment to the lender? How do I receive the funds for the rest of the car?
“Purchasing your first car is quite the accomplishment!
If you’re going to make a down payment in cash, you can give it directly to the dealer at closing.
Once you’re approved for the loan, the financed amount will be given to you by check or paid directly to the dealership by your credit union.
When you go to the dealer, you’ll give them a personal check for the down payment. From there, your lender will either give you a cashier’s check for the remainder or pay the dealership directly.
Don’t forget that when you buy a new vehicle, you will need proper coverage. Lenders usually require full coverage on financed vehicles, which can get pricey, so be sure to budget that into your car expenses.
Insurance doesn’t always have to be expensive, though. Use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”
MORE: What is a Car Lien?
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