Higher down, lower rate
At Eastern, the higher a down payment you pay on your car, the lower your loan rate. Why? It’s better for you all around! By borrowing less you’ll pay interest on a smaller principal, which means less interest paid overall. For example, on a $20,000 car financed at 100%, you’d pay more than $2,300 in interest over 4 years. But by paying 20% down, you’d receive a 0.5% Auto-Rate reduction. You’d pay interest on only $16,000 and Auto-Rate would save you $639 over the life of the loan.*
Plus, with higher equity in the car thanks to the higher down payment you’ll be less likely to owe more than the car is worth if you sell or trade-in the car, or in the unfortunate instance of it being totaled due to accident or theft.
*Example based on 48-month ENY FCU auto loan at 5.50% APR, with a 0.5% rate reduction for 20% down payment. Your rate may vary.
