In most cases, for every $1,000 of down payment you apply, you can expect your monthly payment to drop by about $25 to $30, depending on the interest rate.
Thus, if you’re looking at a car that costs $10,000 and you make a down payment of $2,000 on a three-year loan at seven percent, your payment will be $247.50.
Is $1000 a good down payment for a car?
If they’re dealing with less than perfect credit, this person can expect to need around $1,000 for a down payment. Here’s why: When it comes to special financing, lenders typical require borrowers to make a down payment of $1,000 or 10 percent of the car’s selling price, whichever is less.
Is it better to put a large down payment on a car?
Putting money down on a vehicle has plenty of advantages. The larger the down payment, the lower your monthly payment will be—and you’ll probably get a better interest rate, to boot. But if you make a larger down payment, all of those extras are offset, your loan stays above water, and you still have equity in the car.
Photo in the article by “Flickr”