Interest Rate Car — Buy Down

Leo looks at the SUV through the glass partition. He’s a 'drive it until the wheels fall off' kind of guy. He realizes that by "buying" the lower rate, he’s actually buying peace of mind for the next five years. He reaches for the pen. "Let's do the buy down."

No extra money upfront, but $500 a month for 60 months. buy down interest rate car

"Think of it as a trade," Marcus says. "You pay a little more today—an upfront fee or a larger down payment—and in exchange, the bank drops the interest rate for the life of the loan. You’re essentially prepaying the interest to save money every month." Leo pulls out his phone calculator. He sees two paths: Leo looks at the SUV through the glass partition

"The rate is 8.5%," Marcus says, his voice smooth as a new transmission. "But we can get you down to 5.5% if you want to ." He reaches for the pen