What is the most cash you would try to put down on buying a new car?

Question

I mean there are some people that would actually take cars off the lot with $49 or "no-money" down scheme, which is crazy in my eye sight.

Answer 1

Wow! Some silly answers here!!!

Yes, a car is a depreciating asset but cash is NOT. A car loan is priced at a higher rate than you can earn with the same money in a savings account. I would make sure my credit cards were paid off with the same money before I would use it as a down payment.

If you plan to sell the car before it is paid off, more money down and shorter term of financing.

If you plan to keep it, your best bet is a reduced term - 4 years instead of 5 for example.

You can purchase GAP insurance from a Credit Union at a reasonable price so you dont have to worry about insurance company not paying for what it is worth in the event of an accident.

Good luck!

Answer 2

If you can buy it out right with cash then that would be better. They will probably give you a better price that way too. I don't know if I would get a rav 4 though. They are kinda overpriced. You should look at a Toyota Camry. I have one and I love it. I bought mine used and it was worth every penny. It has plenty of room for a family with kids. Toyota and Honda are really good cars, But I haven't heard anything good about the rav 4 (just 1 bad review). Look it up on the consumers digest or JD Power and associates web site for reviews. good luck

Answer 3

Depends. Some people do "no money" because they figure they'll take the money they don't put down and invest it somewhere where it makes more than the interest rate is on the car loan.

But probably the majority putting no money down simply can't afford any down payment. Then the car is just too expensive for them. There's nothing wrong with living within your means.

Answer 4

the car cost the some no matter what you put down if you plan on paying the car off in a year no money down wont hurt anything its if you buy new then get a 5 year loan with no money down you pay way too much in interest. I am planning on putting 8000 on my new car so I can keep the payments low and pay it off in one or two years.

Answer 5

My parents just put down $20k on a $50k car.

As for me, I'd rather put $0 down. What if you put $10k down... then you're laid off or fired from your job. Then you will have a hard time making payments and most likely end up getting repossessed and having no car.

At least if you put $0 down, you'll have $10k in your bank account to make the payments and rent for a year or two. Well, that's how my pessimistic mind thinks anyways... LOL

Answer 6

I hate having a car payment, so, I have either payed cash or used an alternate loan to purchase my vehicles. I know people that have car payments over $700 and that is nuts! You will wind up living in your vehicle if you have to finance a lot of money.

Answer 7

A car is a depreciating asset it goes down in value the minute you drive it off the lot... Pay cash or put down as much as you can afford.

Answer 8

I have a stern rule set in place to never take a car off the lot without putting down a minimum of $60,000 and a swizzle stick!!

Answer 9

the more money you put down on a car the better. they are a depreciating asset plus the more money you put down the better interest rate the bank will give you. o or no money down are ads car dealers use to entice you to buy a car. it is a very bad idea.

Answer 10

i wouldn't buy a car that i couldn't afford, so what i would put down would be whatever the total cost of the car is. i would rather buy used than have to deal with the payments and high cost full coverage insurance.