How Much Should a Car Down Payment Be?
A down payment is a sum of money put towards a product upon initial purchase. This payment is a portion of the product’s value – in our case, a portion of the vehicle’s purchase price – and lowers the repayment amount when financing. Keep reading to learn more!
How Much Should I Put Down?
Well, it all depends on your budget. There is no golden number when it comes to putting a down payment on a vehicle. The recommended amount for a down payment to get the most out of your plan without spending too much upfront is around 10-20% of the price of the vehicle. However, the more you can afford to put down, the better.
Benefits of a Down Payment for Auto Loans
Many benefits come with putting at least 10% of the vehicle’s value down at the initial purchase. Some of these benefits include:
- Reduces the loan amount
- Less risk for lenders, so more financing plan options
- Higher auto loan approval rates
- Prevents negative equity for new cars
- Reduces your monthly payments/length of loan repayment
Contact Taz Loans!
Here at Taz Loans, we welcome customers from all walks of life to apply for an auto loan with us. Even if you can’t afford to put a down payment, we still offer competitive financing solutions. We have high approval rates and work hard to find a plan that suits your budgeting needs and situation. Contact us to learn more about our process or to start financing your car today!