down payment

Definition

The part of the purchase price paid in cash up front, reducing the amount of the loan or mortgage.

Use down payment in a sentence

You should try to make a big down payment when you make a major purchase to lower the amount you borrow.

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In order to get my new car, I was required to make a down payment of $500 before I could drive it off the lot.

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In order to buy a home, we wanted to have a large a down payment, so we could lower the amount our monthly payment.

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