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How Much Down Payment for a Car Is Recommended?
The recommended down payment is 20% for a new car and 10% for a used car.
For example:
Whats the Minimum Down Payment for a Car Loan?
If you havestrong credit, you might qualify with less.
Use anonline auto calculatorthat includes a down payment option to estimate costs.
For effortless saving, consider setting up automatic transfers to the account each time you get paid.
The trade-in value will count toward the down payment.
However, it will take more time to sell your vehicle rather than trade it.
Pro Tip
Use windfalls like tax refunds or work bonuses to boost your down payment savings.
Even small amounts from a side hustle can add up quickly when set aside just for your car fund.
Below are example scenarios for new car purchases financed over 60 months at a 6.69% APR.
Each example compares a 10% vs. 20% down payment.
These estimates exclude tax, title, registration and fees.
Instead, use an auto loan calculator to work out a down payment amount that works well for you.
Remember: the larger the down payment, the more youll save.
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