How much money down (minimum) to puchase a new car?

Question

I am looking to buy a new car but I am not sure how much money I should put down.

Answer 1

Most folks don't put any money down. This is also one of the main reasons why most folks are THOUSANDS upside down when they try to trade.

In general, if you cannot afford to put 20% down, and finance for 48 mos, then you are on too much car. Of course, this just my standard and nobody elses. I also feel that unless you are financially secure (house paid for, paying into generous college fund, and saving well for retirement and rainy day) then you don't need to look at a car as anything other than basic ansportation.

Answer 2

The prior answer is correct, there are too many variables when buying a car. If you have extremely good credit, you can go with no money down and have a large payment at even low interest rates. I used to do 10% nothing more nothing less, after that you accelerate your payments and the interest rate is also changed to a lower rate. You keep this up until paid and your credit score is excellent.

Answer 3

If you have decent credit you can do it for 0 down. I did.

Car loans are so cheap (for the most part) its better to owe the full price of your car at 4-5% and then invest the cash you had for a down payment and you can make 8-10% return. Or even better put that down payment money toward a down payment on a home.

Answer 4

Only put down as much as you want. Generally, Tax and License is what you should put down...Calculate approx 10% of the purchase price of the car......always depends on what type of payment your looking for. If you have good credit...generally interest rates are somewhere in the 5.5 to 7% right now...if you want to stay at no more than $500.00 per month, stay under $30,000 amount financed....$20,000 to $25,000 =350 to 400...son on and so forth....DO NOT GO MORE THAN 72 MONTHS TERM...DO NOT LEASE....DO NOT BUY EXTENDED WARRANTIES, SINCE MOST PEOPLE TRADE IN THEIR CARS EVERY FEW YEARS.... Make sure you pay a good amount.....Make sure you do not pay anything over sticker price...no dealer added markup....ALSO, DON'T BE CHEAP AND TRY TO PAY DEALER COST....SALESPEOPLE NEED TO MAKE A LIVING TOO...NOT ALL OF THEM ARE LIARS.....BUY A HONDA OR A TOYOTA.

Answer 5

A lot will depend on your credit. If you have good credit then little or nothing down can be accomplished. I got my new 2004 intrepid with no money down...a great interest rate and even negotiated the price to about half of what it booked for retail cause it had some miles on it.

Also if you have a trade in that helps...but you will get the shaft on the value of that car...but if you just want to get rid of it...then what the heck you get the car you want and you get rid of the one you don't want.

Answer 6

If you have decent credit, you can usually go with no money down, but your payments will be higher. Personally I prefer to lease, I have never had a down payment, I get to drive a new car every 3 years, & I never have to worry about a warranty running out.

Answer 7

Banks suggest that you put 15%-20% down so when it comes to trading in you are ahead of the game. You do not have to put any money down depending on where your credit sits.

Answer 8

all depends on what you can afford to put down right now.. Obviously the more you put down now is the more money you will save and thus the less you will pay at the end.

Answer 9

Put down as much money as it takes to make the payment affordable to you for the vehicle that suits all your needs & desires & budget.

1st things 1st......figure out which vehicle you want.

Some manufacturers offer 0% financing.....if thats the case then you might not want to put down anything.
If your credit is good then you won't have to worry about high interest rates...so once again I suggest you only put as much down as it takes to make the payment comfortable

Answer 10

It depends on your credit, the cost of teh car you are purchasing, and what you want your payments to be. It's not a simple answer. Too many variables.