Posted Monday, Nov 07, 2022
The automotive market depends on financing to make vehicles affordable to buyers.
For this reason, automakers, banks and credit unions provide options, such as car loans, to get vehicles into the hands of drivers. A key part of a good financing deal is the down payment. Determining the right amount of cash to pay upon closing the sale can help buyers get a deal that will work both in the short-term and over the course of the loan.
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. Typically, an initial payment of 20 percent or more of the purchase price is wise.
Eagle Auto Group buyers don't necessarily need cash for a down payment. One other common way to bolster the down payment is with a trade-in vehicle.
How much of a down payment do I need?: Know the purchase price, trades, and how much cash you have to put down just incase. Technically you won't know how much money you will need as a down payment until you apply for a loan. Depending on credit and the institution can affect the down payment as well.