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

Deciding to purchase a vehicle is a big decision, but deciding how much to spend as a down payment shouldn’t be.

As a general rule, you should be prepared to pay at least 20% of the vehicle’s sticker price upfront.

For a $30,000 vehicle, this means you should have at least $6,000 saved and ready to spend.

How does a down payment work on a car?

A down payment is seen as a percentage of the car’s purchase price. If you’re buying a $30,000 car and make a 10% down payment, the down payment would be $3,000 at the time of sale. Benefits of making a down payment can include a lower monthly payment and less interest paid over the life of the loan.

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.

How much do you need to put down on a 25000 car?

You can apply for a loan with your bank or credit union, but I suggest using online auto finance lenders for the best interest rates. Although, I don’t personally recommend less than 15-20% down. The absolute minimum amount you should put down is at least the total of your tax, title, and license fees (TT&L).

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