How can making a larger down payment save you money when purchasing a car? (choose two correct answers)

A.
Your monthly payment will be lower
B.
You will pay less interest over the life of the loan
C.
Your monthly payment will be higher
D.
You will pay more interest over the life of the loan

1 answer

The two correct answers are:

A. Your monthly payment will be lower
B. You will pay less interest over the life of the loan

A larger down payment reduces the principal amount you need to finance, resulting in lower monthly payments and less total interest paid over the life of the loan.