# Does down payment provide any benefit? For example I will be paying 7.8% tax monthly. Will I save that?

**URL:** <https://forum.leasehackr.com/t/does-down-payment-provide-any-benefit-for-example-i-will-be-paying-7-8-tax-monthly-will-i-save-that/13299>\
**Category:** Ask the Hackrs\
**Created:** [May 12, 2017, 8:30pm UTC](https://forum.leasehackr.com/t/does-down-payment-provide-any-benefit-for-example-i-will-be-paying-7-8-tax-monthly-will-i-save-that/13299 "2017-05-12T20:30:52Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![King0fspades](https://leasehackr.b-cdn.net/letter_avatar/king0fspades/32/5_5575768a8748004e209b776fc1b2916d.png) [@King0fspades](https://forum.leasehackr.com/u/King0fspades)\
**Post date:** [May 12, 2017, 8:30pm UTC](https://forum.leasehackr.com/t/does-down-payment-provide-any-benefit-for-example-i-will-be-paying-7-8-tax-monthly-will-i-save-that/13299/1 "2017-05-12T20:30:52Z")

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Does down payment provide any benefit? For example I will be paying 7.8% tax monthly. Will I save that?

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**Author:** ![Jon](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/jon/32/70934_2.png) [@Jon](https://forum.leasehackr.com/u/Jon)\
**Post date:** [May 12, 2017, 10:04pm UTC](https://forum.leasehackr.com/t/does-down-payment-provide-any-benefit-for-example-i-will-be-paying-7-8-tax-monthly-will-i-save-that/13299/2 "2017-05-12T22:04:02Z")

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In CA, you pay tax on down payment, so there is no benefit to CCR.

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**Author:** ![King0fspades](https://leasehackr.b-cdn.net/letter_avatar/king0fspades/32/5_5575768a8748004e209b776fc1b2916d.png) [@King0fspades](https://forum.leasehackr.com/u/King0fspades)\
**Post date:** [May 12, 2017, 10:15pm UTC](https://forum.leasehackr.com/t/does-down-payment-provide-any-benefit-for-example-i-will-be-paying-7-8-tax-monthly-will-i-save-that/13299/3 "2017-05-12T22:15:16Z")

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Thank you sir, and CA tax rate is higher than Arizona. I will be losing money if I pay down.

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**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\
**Post date:** [May 13, 2017, 6:36pm UTC](https://forum.leasehackr.com/t/does-down-payment-provide-any-benefit-for-example-i-will-be-paying-7-8-tax-monthly-will-i-save-that/13299/4 "2017-05-13T18:36:11Z")

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You will save on interest (finance charge) but with MFs generally low these days it may not be much.

Not sure how you concluded you would lose money, though.

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**Author:** ![King0fspades](https://leasehackr.b-cdn.net/letter_avatar/king0fspades/32/5_5575768a8748004e209b776fc1b2916d.png) [@King0fspades](https://forum.leasehackr.com/u/King0fspades)\
**Post date:** [May 14, 2017, 10:16pm UTC](https://forum.leasehackr.com/t/does-down-payment-provide-any-benefit-for-example-i-will-be-paying-7-8-tax-monthly-will-i-save-that/13299/5 "2017-05-14T22:16:45Z")

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Because tax rate in CA is higher than AZ. They would charge CA tax on down.