We have the following discounts for auto loans for down payment and loan-to-value (LTV) ratio.
- For Auto Loan (Purchase) from a dealer: if the down payment is > 10% = (-0.75%) discount and if the down payment is > 20% = (-1.5%) discount
- For Auto Loan (Refinance) and private party sales: if LTV < 90% = (-0.75%) discount and if LTV < 80% = (-1.5%) discount
However, it's important to note that the pre-approval offer states the approved interest rate, which reflects potential discounts for recent arrivals and good credit, but does not reflect down payment/LTV discounts. It is important to note that the final interest rate, which includes the down payment and LTV ratio, will only be known once we receive a bill of sale from the dealer for the exact car that you'd like to purchase and will be found on your loan contract at the time of loan closing.
If you plan to make a down payment on your car purchase, please be sure to let the dealer know. The down payment must be listed on the Bill of Sale provided by the dealer. The down payment is based on the % of the vehicle sale price and not the total sale price, including taxes and dealer fees. For Private Party purchases and Auto Refinance Loans, LTV% is used instead of a down payment.
Consider an example where a client receives a pre-approval offer with an approved interest rate of 7.99% due to a -1% discount for a good credit score. However, if the client makes a down payment of $4,000 on their $20,000 auto loan (20%), as stated on the Bill of Sale, an additional -1.5% discount would be applied, and the final interest rate as seen on the loan contract would be 6.49%