{"id":143,"date":"2026-03-09T15:31:00","date_gmt":"2026-03-09T15:31:00","guid":{"rendered":"https:\/\/tt-blogs.dealerfire.com\/folsomautomall\/?p=143"},"modified":"2026-03-24T15:32:35","modified_gmt":"2026-03-24T15:32:35","slug":"how-down-payments-really-work","status":"publish","type":"post","link":"https:\/\/www.folsomautomall.com\/blog\/how-down-payments-really-work\/","title":{"rendered":"How Down Payments Really Work."},"content":{"rendered":"\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Folsom Auto Mall - How Down Payments Work &amp; What $0 Down Really Means\" width=\"474\" height=\"267\" src=\"https:\/\/www.youtube.com\/embed\/qkyWyHfBisk?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><em><strong>Ever wonder how down payments work when you\u2019re buying or leasing a new or used vehicle? The Folsom Auto Mall tries to make it simple for you.<\/strong><\/em><\/p>\n\n\n\n<!--more-->\n\n\n\n<p>Unless you\u2019re buying a vehicle outright &#8211; that is, handing over a cash or check for the full value of the vehicle, chances are, you\u2019ll be financing or leasing. Whether you\u2019re financing or leasing a vehicle, a <strong>down payment<\/strong> (or cap reduction, when discussing a lease) is the initial money you pay toward the full sale or lease contract price. This lowers the remaining balance owed; that balance is paid over a contracted term, typically anywhere from 36 to 72 months.<br><br>The amount of money you put down will vary. If your credit is not great, most financial institutions will require a larger down payment. With good credit, you can sometimes drive away without putting any money down. That\u2019s what is meant by \u201c$0 down.\u201d <strong>Zero down<\/strong> means you\u2019re not putting any money toward your loan or lease; however, there are still some fees you may have to pay like tax, tag, title or dealer fees. Putting zero down means you\u2019ll be paying the entire balance of your loan or lease over the course of the agreed upon term; that means your payment will likely be higher. Sometimes a manufacturer may assist with \u201cbonus cash\u201d or \u201crebates\u201d to use toward your down payment or cap reduction to make the vehicle more affordable.<br><br><em><strong>Whether you\u2019re buying or leasing, the more money you put down up front, the lower your monthly payment will be.<\/strong><\/em> Lease terms typically last 36 months (that\u2019s 3 years) while finance terms could be much longer. Depending on your credit, your finance term can be as long as 7 years. Interest rates also play a role in your actual monthly payment. The lower your interest rate and the longer your term, the lower your monthly payment will be.<br><br>The Folsom Auto Mall has experts in their finance departments who can help you decide what terms would work best for you and your budget. Whether it\u2019s financing or leasing, the length of your term or how much money to put down, the Folsom Auto Mall can help. There are almost always $0 down deals available for both new and used vehicles. <a href=\"https:\/\/www.folsomautomall.com\/locations\/index.htm\">Stop by your favorite dealership to find out more.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ever wonder how down payments work when you\u2019re buying or leasing a new or used vehicle? The Folsom Auto Mall tries to make it simple for you.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11,18,14,2],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<link rel=\"canonical\" href=\"https:\/\/tt-blogs.dealerfire.com\/folsomautomall\/how-down-payments-really-work\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Down Payments Really Work. - Folsom Auto Mall\" \/>\n<meta property=\"og:description\" content=\"Ever wonder how down payments work when you\u2019re buying or leasing a new or used vehicle? 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