This means buyers who want to finance the purchase of a $15,000 used vehicle should plan to put at least $1,500 down.
Lenders may require more money down on a new car than a used car to offset its quicker depreciation.
Typically, an initial payment of 20 percent or more of the purchase price is wise.
Can you buy a new car with no money down?
You could put down even less, if you want, or buy a car with no down payment, but the fees and rates are higher. Use that time to boost your credit score, so that auto dealers may be more willing to lower their rates. The problem with no down payment is that it can leave you in an upside-down situation with a car loan.
Does down payment affect interest rate on car loan?
Generally speaking, a loan that accounts for more than 80% of the home’s value will require PMI coverage. The down payment amount can also affect the interest rate that is assigned to your mortgage loan. In some cases, a larger investment from the buyer could result in a lower rate.
Photo in the article by “Army.mil”