Making a down payment and then paying the rest of the price through installments is a method that makes expensive assets more affordable for the typical person.
For example, because houses are extremely expensive assets, home buyers typically pay down payments that equal 5-25% of the total value of a home. The remaining 75-95% of the price will be covered by a bank or other financial institutions through a mortgage loan.
Investment dictionary. Academic. 2012.
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Down payment — (or downpayment) is a payment used in the context of the purchase of expensive items such as a car and a house, whereby the payment is the initial upfront portion of the total amount due and it is usually given in cash at the time of finalizing… … Wikipedia
Down payment — ist ein englischer Begriff für Vorauszahlung oder Anzahlung. Er wird im Zusammenhang mit Kaufverträgen, Lizenzverträgen oder Franchiseverträgen für die erste Zahlungsrate (ggf. auch die ersten Raten) verwendet. Bei Kaufverträgen, die mit… … Deutsch Wikipedia
down payment — ➔ payment * * * down payment UK US noun [C] ► COMMERCE a payment of part of the total cost of something that you make when you buy it. The rest of the cost is usually paid over a period of time: make/put a down payment on sth »I ve put a down… … Financial and business terms
down payment — I noun collateral, deposit, installment, payment, retainer, stake, surety II index deposit, handsel, installment Burton s Legal Thesaurus. William C. Burton. 2006 … Law dictionary
down payment — down payments also downpayment N COUNT If you make a down payment on something, you pay only a percentage of the total cost when you buy it. You then finish paying for it later, usually by paying a certain amount every month. If you re borrowing… … English dictionary
down payment — n a payment you make when you buy something that is only part of the full price, with the rest to be paid later ▪ We ve almost got enough money to make a down payment on a house … Dictionary of contemporary English
down payment — noun count a first payment that you make when you are buying something and are going to pay the rest later … Usage of the words and phrases in modern English
down payment — ► NOUN ▪ an initial payment made when buying on credit … English terms dictionary
down payment — ☆ down payment n. an initial, partial payment on a purchase … English World dictionary
down payment — noun a partial payment made at the time of purchase; the balance to be paid later • Syn: ↑deposit • Hypernyms: ↑payment • Hyponyms: ↑margin, ↑security deposit * * * noun, pl ⋯ ments [count] … Useful english dictionary
down payment — n. 1) to make a down payment 2) a down payment on * * * a down payment on to make a down payment … Combinatory dictionary