"Exactly," Marcus nods. "If you plan on keeping this car for five or six years, you’ll save thousands in the long run. If you’re going to trade it in in two years? Don't bother. You'll never see that money back."
He pays an extra $2,000 today. His payment drops to $440. buy down interest rate car
The dealership smells like floor wax and expensive coffee. Leo sits across from a salesman named Marcus, who is currently sliding a four-square sheet across the desk. "Exactly," Marcus nods
"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 ." Don't bother
"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: