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.
Do car dealerships take cash for down payments?
The type of down payment accepted varies from car dealership to car dealership, however, most car dealerships accept down payments in the form of cash, checks or debit cards. Because of high interest rates and other associated fees, making a down payment with a credit card should be your last resort.
Is a bigger down payment better car?
The Bigger Down Payment On a Car, the Better. The more you are able to put down on your car when you buy it, the better financing terms you will likely be offered. Although low interest rates are attractive, a larger down payment may sometimes reduce your monthly payments more than a lower interest rate.
Should you put a downpayment on a car?
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.
Photo in the article by “Flickr”