In a Nutshell
A car down payment is money paid upfront for a vehicle you buy.
Lenders often require down payments, but even when they don’t it’s a good idea to put money down anyway.4 days ago
Does down payment affect car interest rate?
Buying a new or used car also affects your interest rate, says Thompson. To help qualify and potentially lower your loan payments, experts suggest having a 20% down payment for a new car and 10% for a used car. “The down payment makes a bigger difference if you’re borderline and can’t qualify [for a loan],” says Reed.
Photo in the article by “VAntage Point – VA.gov”