How Much Down Payment Is Required
Your down payment depends on your credit rating…if you have a good credit rating you can put down as little as you want but not as much as you want as most lending institutions have a minimum amount of $7500. for car loans, any less amount it becomes a personal loan
Buy Here Pay Here dealers
you can secure car loans under $7500. with sky rocket Interest rates so bad you will still be making payments when the vehicle is sitting in the scrap yardIf your credit rating is below par the lender will tell you what is needed as a down payment for them to secure their investment
If you want to be at a certain monthly payment…ask the salesperson how much down is required to be at the payment you want
As a rule of thumb on a used car purchase from 1 to 4 model years old, if you make a down payment around 20%, in most cases that will cover depreciation factor the first year, should you want to trade you most likely will not be in a negative situation, with a brand new car selling or trade after the first year expect a depreciation factor as high as 30% on the amount you paid out the door.
