Dye Autos Denver Area Truck and Automotive Blog
When you’re buying a new or “new to you” vehicle, whether you’re getting your auto loan through an independent lender or through a dealer, you’ll need to decide how much money you want to put down. Making a down payment at the dealership takes some preparation so your purchase runs smoothly.
First, let’s define down payment.
The phrase is actually derived from the old practice of putting money down on the table to show a seller good faith when negotiating a deal. Today, the down payment is simply a way of reducing the amount of risk a lender has to take when helping you make a substantial purchase.
Do I always need a down payment?
A down payment isn’t always required for purchase, but it’s definitely a good idea. Why?
- It will reduce the amount you’ll need to borrow.
- It improves your chances of loan approval.
- You may get better terms with a down payment.
- It will reduce your monthly payment.
Is my trade-in considered a down payment?
Yes, your trade-in vehicle can serve as your down payment. However, there’s one question to answer that will determine how your trade-in down payment will be handled.
- Is your trade in loan paid off?
- If your trade-in loan is paid off, the dealer will appraise your trade-in and give you the price they’re willing to pay for your vehicle (actual cash value or ACV). You can use that amount as a down payment.
- If your trade-in loan is not paid off, the dealer will obtain the “pay off amount” and compare it with the price they are giving your for your trade-in (ACV).
- A positive difference (you owe less on your loan than your trade in’s ACV) means you can use the amount for your down payment.
- A negative difference (sometimes called “negative equity” – you owe more on your loan than your trade-in’s ACV) gets a bit more complicated.
- Does your trade-in have negative equity? For example, if your trade-in’s ACV is $3,000 and your loan pay off is $5,000, you have $2,000 in negative equity and will need to make up the difference either in your new loan or by paying additional down payment.
How much do I need to put down?
The generally advisable percentage to put down on your vehicle purchase is much like the recommended down payment on a home—20%, if you can afford it. Used cars may require less—10% or more.
Having a 20% down payment ensures that you’ll receive favorable terms on your financing, lowers the amount you need to finance, and reduces your risk of owing more on your loan than your vehicle is worth later on. The benefits of a higher down payment can include:
- Favorable financing terms
- Lower interest rate
- Higher loan approval rates
- Lower monthly payment
- Lower total interest paid
- Reduced risk of being upside down
What forms of payment do dealerships take as down payment?
When it comes to making a down payment on a car, be prepared with your method of payment. This may include:
- Cash
- Personal check
- Cashier’s check
- Credit card
- Debit card
- Pre-approved loan
- Personal loan
Pro Tips on Down Payments
- If you want to use a credit or debit card, ask the dealer if they will accept this form of down payment and if there’s a limit on how much can be charged.
- Check with your card issuer to see if there is a limit to the amount you may charge in a single transaction. The last thing you want is to have your card only be able to charge $2,000 when the total down payment is $5,000.
- Keep in mind that getting a personal loan prior to seeking approval for an auto loan will likely impact how much you can borrow. The credit inquiry and loan will show up on your credit report and affect your “Debt to Income” ratio.
Got more questions about making a down payment?
Each vehicle sale is different. At Dye Autos, we’ve sold thousands of cars and pickup trucks. We’ve helped a lot of confused people determine which down payment is right for them. Many of those customers thought they’d never be able to afford a vehicle!
Give us a chance to help you. Call us at (303) 286-1665 or use our handy online financing pre-approval form >>here<<.
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Buying a pickup truck (or car) can be an arduous process…but with a little planning and a simple checklist, you can lessen the time spent.
We’d like to make buying a pickup truck as quick and painless as possible.
Here’s a list of the items to bring with you to help speed up your shopping process and get you in and out with minimum hassle.
1. Your driver’s license
You need to be a licensed driver to drive the vehicle off the lot. The driver’s license also serves as identification for your lender, your check or other forms of payment.
2. Proof of auto insurance
To drive a pickup truck off the lot, you need to prove that you have insurance on that car. You can call ahead and set up the new insurance policy if you know which pickup truck you are buying. Or you can call from the dealership and give your insurance company the new car’s vehicle identification number (VIN). Your insurer will provide coverage details to the dealership and your lender. In some cases, however, all the dealer requires is for you to show that you have a current auto insurance policy.
3. Your trade-in vehicle and ALL that comes with it
- Certificate of title (if you don’t have it, the DMV can tell you how to get it replaced). Note: if you have an outstanding loan on the vehicle, this will not apply since the bank has your certificate of title.
- Current registration.
- All your car keys, accessories that came with the car and the owner’s manual.
- If you still have a loan on the car, you’ll need to have your account number or a payment stub.
- Maintenance records. These help support your claims about whatever prior damage your car has had and the repairs it has undergone.
Pro Tip: Before you visit the dealership, be sure to take these important steps to get the most for your trade-in:
- Use online tools to appraise your car’s value. Edmunds.com and kbb.com are two great resources to appraise your trade-in’s value.
- Be honest with yourself about your car’s trade-in condition. The more forthright you are when using online appraisal tools, the better off you’ll be when it comes time to trade it in. Very often, people come into the dealership with an overly-optimistic idea of what their car is worth, only to find that reality is less optimistic.
- Give your trade-in curb appeal.
- Clean the exterior and interior well.
- Remove small dents.
- Fix window glass defects.
One of the most popular questions we get from our customers when they’re trading in is, “Should I detail my vehicle before I trade in?” The quick answer is yes, but there are important factors to keep in mind. Read more about taking the right steps to detail your trade-in here.
4. Your Payment: how will you be paying for the pickup truck?
Payment can be made by check from a bank or credit union.
When the dealership is handling the financing, the down payment can be in the form of a cashier’s check, a personal check or even a credit card payment. To find out what forms of payment the dealership will accept, call ahead of time and ask to speak with a finance manager.
If you plan on financing your pickup truck, it’s a good idea to have these ready:
- Last two recent pay stubs (if you have more than one job, bring the stubs from those as well)
- Proof of residency (any current utility bill should do, such as water or electric)
- List of references (not including anyone living in your household)
- Your credit score (read more about how to do that here). The higher your score, the better your financing terms will be.
Pro Tip: We strongly recommend that pickup truck buyers get pre-approved financing, even if they intend to finance at the dealership. We have an easy way to get pre-qualified at Dye Autos. Just click >>here<< to fill out our online form.
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Whether you’re trading in your car on a new car (or a new-to-you car) or selling directly to a dealer without buying another car, the condition your vehicle is in determines its trade in value. Getting a fair price for your old set of wheels is important, but it’s not so obvious how much work you should actually put in.
The first step in this process is getting your car prepped and ready before you set foot in a dealership to make a trade. One of the most popular questions we get from our customers when they’re trading in is, “Should I detail my vehicle before I trade in?”
The quick answer is yes, but there’s more to it.
We all want to make a good first impression, and trading in a car is no different. You want to give the impression of a well-maintained vehicle…and that means thoroughly cleaning your vehicle inside and out.
It will be hard to convince a dealer that your car has been well maintained if it looks dirty and neglected.
Steps to detail your car before you trade in
- Wash the exterior. You can pay a professional or do it yourself. If you’re washing it yourself, make sure to use a high quality product and not dish soap, laundry soap or any other household cleaners.
- Wax your car. It will add an appealing shine and that presents well.
- Clean the interior.
- Climb inside and get rid of those empty fast-food bags (or sneaky french fries that may have slipped between the seats). Get rid of all the empty water bottles, gum wrappers and other trash. Clear out any personal items or papers that may have accumulated over the years. The only paperwork you should have in the vehicle is an organized pile of maintenance records stored neatly in the glove box.
- Clean all the interior surfaces with a quality vehicle interior cleaning product. It usually smells good and the nice scent lingers on until you bring the car to the dealership.
Pro Tip: Take your car to a professional detailer. Depending on how dirty or grimy your car is, this could be a requirement. They’ll wash and wax the exterior with top quality products. They will shampoo the carpets, clean the glass inside and out, use ionizers and neutralizers to eliminate any foul odors, get inside the door jams, extract those stubborn crumbs and use special tools to reach the difficult nooks and crannies.
As you start planning your car detail process, the next logical question that will come up is, “What about repairs?”
Fix small repairs yourself.
- Check all the lights: headlights, interior dome lights, and trunk lights and replace them if needed.
- Check all fluid levels (oil, washer fluid, coolant, brake, radiator, and transmission fluid) and top them off if needed.
- Fix small scratches and dings. If you’re happy to do this yourself, go for it. If not, there are people who will come out to your job site or office and do it for you.
- Make sure wiper blades are in good condition.
- If there’s a crack in your windshield, don’t ignore it. Your insurance company may replace the windshield for free, but even if it’s not covered by insurance, replacing the windshield will give the impression of a well-maintained vehicle.
Leave significant repairs to the dealer.
If your car needs more serious work, leave that for the dealer. Any major issues will lower the value of your trade-in, but the dealer can perform the repairs for less than it would cost you.
Don’t waste your money on significant repairs. The dealership is in the business of fixing cars for resale, so leave the heavy lifting for them. Bigger-ticket items like a broken air conditioner or worn-out tires often aren’t worth your investment, but taking the time to clean inside and out, replace some bulbs, and refill some fluids will help you get the most money for your trade-in.
Bonus Tip: Pack all your trade-in’s accessories.
Trading in your car means you are trading in everything that goes along with it. Make sure the original owner’s manual and any extra keys are in the vehicle when you arrive at the dealership. Dealers like used cars that still have all the accessories and may even give you a better deal on your trade when everything is there.
Are you thinking about trading in your car or truck? Dye Autos is here to help you every step of the way. Call us at (303) 286-1665 or contact us >>>here<<<.
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A pickup truck is a great thing to have. It’s convenient for home improvement projects and “Honey Do’s.” It’s your sidekick when you go camping. It’s a super comfortable way to transport the family for short trips or long distances. But have you thought about the ways you can make extra money with your pickup truck?
Pickups are the BEST vehicles to own for a side hustle or a small business.
From hauling to delivering, a pickup truck is a versatile piece of equipment that’s got plenty of business opportunities…if you just get a little creative.
Many people are already paying for a pickup truck and even though dealers like us at Dye Autos have lots of affordable pickups, it’s still a monthly expense. But using the following money-making ideas, your pickup can pay for itself – plus some!
You can even turn some of these into a lucrative side hustle or small business for part or full-time income.
1. Get paid to haul stuff away.
Lots of businesses need you to get rid of stuff they don’t need!
Old inventory, broken furniture, dingy office file cabinets, outdated electronics, or even just trash could provide the perfect opportunity for you to make some money.
Pick up what the businesses don’t need and take it to the local recycling center for a fee.
People in your neighborhood also need you, especially if they’re in the process of remodeling their home or going through their storage areas to prepare for a yard sale.
2. Local business deliveries.
Small local businesses could use your help to deliver their products locally. Think flower delivery or mattress delivery. Maybe there are some antique shops in town that can benefit from a person with a pickup who can deliver some larger items to customers?
Or, maybe a pool store could use an extra delivery person to bring materials to a residence.
Check with local businesses and let them know what you can do to help.
3. Wrap your pickup truck.
Make extra money with your pickup truck by using it to advertise a product or service. Using your vehicle as a moving billboard helps to bring exposure to the product, brand, or service advertised.
Check out the many vehicle advertisement companies that pay you handsomely to advertise on your truck. Some of them can even pay you more just to drive your truck to specified high traffic area.
There are many companies that pay pickup truck owners to advertise or promote products or brands. Some contracts with these companies run for 3 to 6 months. One of them is Carvertise and you can check them out here.
4. Haul building supplies.
If you’ve ever visited a building site, there are tons (literally) of materials there. Small construction companies might want to pay for your private delivery services instead of using a large company that may charge more.
You can bring large materials to and from residential and commercial construction zones.
You might consider being available for the cleanup process when it’s time to bring leftover materials to the recycling or trash center.
Now it’s worth noting that there are already lots of businesses that offer this service, but the service only exists because there is a demand for it.
5. Garage sale deliveries.
This is one of the more interesting ways to make extra money with your pickup truck…and it’s a great way to build a client base!
- Be on the lookout for garage sales in your area. This could be signs around town, the nextdoor app, Craigslist and Facebook Marketplace.
- Let people know that you will handle their deliveries for them.
- Print a flier or business cards and bring them with you on the day of the garage sale.
- The host can tell their customers about your service when they purchase.
Your service will allow the host to sell more items than they would have because people are more apt to buy when they don’t have to worry about hauling it.
It’s a pretty convenient service to offer. Customers can arrive and do their shopping regardless of their mode of transportation.
6. Offer landscaping services.
As most of us agree, yard work can be time consuming and not always fun.
You can use pickup truck to accomplish basic jobs to regular yard maintenance work like mowing, weeding, pruning, mulching, etc. You might even start a small landscaping service.
Either way, your pickup truck can definitely come in handy for transporting flowers, dirt, rocks, and other landscaping materials.
This type of service can work year-round, like hauling bags of leaves in the fall or plowing snow in the winter!
And speaking of snow….
7. Snow plowing services.
Residents and businesses in the Denver/Wheat Ridge area need you.
This would actually be a truck-based business because it would require an investment in a snow plow attachment for your truck. It could cost one or two thousand dollars, but that’s not too crazy if you are planning on several winter’s worth of snow plowing.
Get the word out by going through the suburbs door-to-door with your services, put up an advertisement at the local gas station or Craigslist, and even use social media share pictures of your work.
8. Large appliance repair pickup and delivery.
Large appliances, like refrigerators and washing machines, sometimes need to be sent off for repair.
But the average person doesn’t have a vehicle large enough to hold them, which means they’ll have to pay extra for transportation.
Here’s where you come in with your truck to save the day!
You can also check with local rental centers and stores that sell appliances to see if they might need a backup delivery person for busy days.
9. Find pickup truck jobs on Shipperoo
Shipperoo is a website where you can apply to make your pickup truck work for you.
You are connected to businesses or individuals who need your truck to move, transport, or haul their equipment, goods, or products from one place to another.
Shipperoo matches you with shippers. Click here to check out Shipperoo
10. Join TaskRabbit to offer delivery services.
The Sharing Economy is upon us so why not leverage it to make extra money with your pickup truck?
Start ‘tasking’ and earn money your way. You’ll be someone’s hero and earn money by helping people.
- The App notifies of potential jobs nearby
- Select the one you want to complete
- Confirm details with your client
- Complete the work and submit your invoice
Pro Tip: If you’re looking for an affordable pickup truck, give us a call at (303) 286-1665 and check us out online at www.dyeautos.com. We’ve helped thousands of people get into the truck of their dreams!
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Every pickup truck shopper is looking for a vehicle that fits his or her specific needs. After all, there’s only so much research one can do online. There comes a point in every buyer’s journey where you need to experience the vehicle(s) you’re considering. The test drive is the #1 way to determine which pickup truck is best.
Buying a pickup truck without a test drive is like buying shoes without trying them on. Except, you can easily return the shoes – not so much with a vehicle.
Importance of a Test Drive
Once you’ve driven a vehicle off the lot, your choices are limited, says Alec Gutierrez, the manager of vehicle valuation for Kelley Blue Book. Buying sight unseen increases your chance of buying the wrong vehicle. Most auto experts still recommend an extended test drive on a variety of roads.
The simple fact of the matter is, used pickup truck reviews can tell you a lot about a vehicle, but only so much as to narrow the field. They can help you decide what, out of the many different types, makes and models, you should focus on, so you don’t have to do all the legwork on your own.
The problem is that the evaluators aren’t actually you – they can’t predict what little (or big) things will matter to YOU. The test drive is how you determine what options you need…and which ones you don’t.
How to Conduct a Good Test Drive
Comfort and Function
Considering how much time the average Coloradoan spends in their vehicle, it’s important to make sure it’s comfortable and functional.
- Is it easy to get in and out of the vehicle?
- How does the seat feel? Are you able to find a comfortable position?
- Is the pickup truck the right size for your needs (compact, midsize, fullsize)?
- Can you easily see all your mirrors and gauges? Are there any obstructions that make it difficult for you to see?
- Are there enough seats to comfortably fit your family?
- Standard, extended or crew cab?
- Standard or long bed?
- Will it haul your stuff?
- Are you planning on towing a trailer? Check towing capacity.
Driveability
The feel of a pickup truck on the road and your ability to maneuver with ease is just as important as how comfortable you are in the seat. When you get behind the wheel and head out, make sure to replicate your daily driving experience. For instance, if you spend a lot of time on the freeway, take it out on the freeway to get a sense of how it will perform.
Here are some additional things to pay particular attention to:
- How smoothly does the pickup truck ride?
- Is it a quiet ride or is road noise an issue?
- Does the vehicle respond quickly as you steer?
- Are you comfortable with how quickly the pickup truck accelerates when merging into traffic?
- When you brake, is it jerky or smooth?
A Test Drive is Key to Buying the Right Pickup Truck
The test drive is a crucial step to finding the right pickup truck, the one that will make you happy, as opposed to the “best truck” that reviewers rate highest. It will be worth it to spend this extra time now, because a vehicle is a long-term investment. You’re probably going to have this pickup truck for a few years, possibly even a decade, and spend thousands of dollars on it.
You’ll be glad you spent the extra half-day making sure your decision is the right one.
At Dye Autos, we’ve helped thousands of pickup truck shoppers with their test drives. We can help you – no strings attached! Give us a call at (303) 286-1665 or fill out our easy contact form here and we’ll be in touch.
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