How much of a down payment should you put on a used car?
You have been thinking it over and have decided that it is time to go out and get a new (to you) automobile. You have come to terms with the fact that it is time to replace your car, and you want to venture out and take a look around. You have an idea of what you would like to pay for the vehicle up front, but maybe there is more to figuring it out than just picking a number you’d like to spend. How much of a down payment should you put on a used car? Keep reading for more details.
What is the best down payment to make on a used car?
Many experts agree that if you are not going to pay for the entire cost of the vehicle right out of the gate, it is a good idea to put down at least 10 percent of the vehicle’s price. So if you are looking at a used car that costs $8,000, that would mean a down payment of $800 if you are following this guideline. If you are able to, however, it is more strongly recommended to try to put down 20 percent of the vehicle’s cost. For the $8,000 example, that would mean a down payment of $1,600.
The reason experts recommend this percentage is all about long term financing. Getting as much of the cost of the car as you can out of the way when you make the purchase means you will have less to finance. You may be able to pay off the vehicle sooner and with less interest over the course of the financing period.
Down payments at Car & Credit LLC
At Car & Credit LLC, while you are welcome to make larger down payments on our vehicles, we do allow down payments as low as $99 on some of our models. You can also build your credit or re-establish your credit by purchasing with us, without having to rely on an outside bank for approval. Give us a call today if you have any questions, and we’ll see how we can get you behind the wheel of a used car you’ll love!