Do you think it's better to buy a car with no money down, or with some down payment?

Question

My boyfriend's son is considering buying a car with no money down. I'm thinking he would be better off if he put some money down...like a few thousand. Then his payments would be less.

Anyone ever have experience with NO money down on a car? What were the results?

Answer 1

At Carmax, my friend put $25 down on a '98 Camry. She provided $10 and I provided $15. There were no issues - she obtained the loan and everything was OK. In fact, the $25 down payment allowed her to become eligible for the loan because they calculated a maximum monthly payment she was eligible for.

I prefer to buy cars with cash because I want to own the car outright - not deal with lienholders. Also, if your credit isn't stellar - a big down payment could help with lowering the interest rate - the lending company feels comfortable with a big down payment and does not have to worry about repoing the car and losing money.

Answer 2

If he has some money to put down is always better. You get better financing depending on what you have for a down payment. But if this is a young man then a reasonably priced private sale vehicle may be better suited. Youll pay a lot less for a vehicle from someone who isnt a dealer. Either way you have to be pretty smart about cars so that you dont buy a piece of junk (even from a dealer) so know your stuff and never jump into something without knowing what your getting into. People will say you need a NEW car or a car from a reliable dealer (not too many around). Most dealers are waiting for the sucker to walk in the door. Good vehicles can be had at a good price. Just gotta do the work to make sure you get a decent vehicle at a decent price. Good Luck. P.S. Also when you buy outright you dont have to fully insure your vehicle. When you finance a car you gotta have full coverage.

Answer 3

I'll bet the money down only will reduce the payment a little . I have bought my last 3 cars with no down payment and then after I got the payment book I took the money I would have used for the dwn pmt and paid it on the principle and reduced the # of payments by a half a year

Answer 4

It would be better to put money down if it lowers the purchase price of the car.

It would be better to not put money down if the price is the same and the interest rate is lower than 5%. In that case, you would be better off putting the down payment into a CD and making the car payment instead.

Answer 5

if it's used put money down...if it's brand new don't put money down,cuz if for some reason he can't make payments he can walk away from it and not lose( cars are not an investment unless there something special ) and still have the glory of driving a new car, like renting. Used most loans require a down payment.

Answer 6

It's really hard to find someone to loan money on a car with 0 down, and a decent interest rate. If he doesn't put some down, he'll end up with a car that's worth less than he owes on it.

Answer 7

It really depends on your situation and the dealer's financing. At any rate, putting even a small amount down will save you from interest being compounded over time on that part at least. I say put money down, even a small amount. We got a vehicle with no money down and it would have saved us probably 5,000.00 if we'd even put any down payment at the start.

Answer 8

do not let the dealer do the financing, shop around for the best rates. the dealer will go with the first accepted offer no matter what the term or the rate. they just want to move the car, they don care about your monthly payment. go to credit unions and banks to find the best rate, my experience has been that credit unions have the best rates over the banks.

Answer 9

its actually better to pay some down on one,because it makes the price of the car a little less to have to finance,and this can help out in finance charges as well i have always paid something down on any car i have bought and it has helped me a little but it also looks better on your credit if you can pay a little something down on one,it don't have to be a lot just enough to show a little good faith but its really all up to you whether you really want to or not,good luck,i hope this help,s.

Answer 10

You should take it to the dealership only if you can catch a special when they give you a minimum trade amount for your car. A dealership near me just had one and gave a minimum of $6000 for a trade towards the purchase of a car ( i used it and my car wasnt worth that much and i got a good deal). you may be giving yourself a bad deal. If you cant find anything like this, then sell it. But make sure the most you can get for your trade is $1000.