Quick Answer: How Much Should You Put For A Downpayment On A Car??

For a used-car loan, you generally want to put down 10 percent or more of the vehicle’s sale price.

This means buyers who want to finance the purchase of a $15,000 used vehicle should plan to put at least $1,500 down.

Lenders may require more money down on a new car than a used car to offset its quicker depreciation.

How does a down payment work?

A down payment is the amount of cash you put toward the sale price of a home. It reduces the amount of money you will have to borrow. Depending on the type of loan, mortgage lenders require a minimum down payment, generally ranging between 5 and 20 percent of the purchase price.

Can I get a car with no down payment?

If you don’t have a down payment or a trade-in, you can still get a new car as long as you have a good credit score. To help reduce your loan costs, start by shopping around for a car loan before you ever visit a dealership. Contact at least three banks and credit unions to see what loan terms you can get.

Can I use a credit card for a down payment on a car?

The next time you buy a car, consider using a credit card to earn rewards on the down payment. If you don’t have the cash on hand to pay off the card, or you simply can’t put the down payment on your card, stick with cash.

Photo in the article by “Flickr” https://www.flickr.com/photos/jaguarcarsmena/26566786059