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How much down should you put on a car?

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Wondering what a good percentage to put down is? Im looking at used and new and the budget is no more than 20k max so that limits most new cars. 700 credit score. Will more down give a better finance rate? 

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12 hours ago, Caddypower said:

Wondering what a good percentage to put down is


This is a really broad question, and it depends on your objective(s).


What's important here?


- Conserving cash upfront so you don't have to dig too deeply into your emergency savings?

- Better APR?

- Avoiding the inclination to spend hundreds of dollars on GAP?

- Minimizing interest expense over the term of the loan?

- Getting approved?

- Lower payments?


Out of curiosity, what kind of vehicle are you looking for?  If you'd consider an electric vehicle, there are cars like the Nissan Leaf that are leasing for under $100 a month right now.


If I had budget constraints, I'd strongly consider that, or buying something used that lasts forever like a Lexus RX. 


We needed a "temporary" car almost 7 years ago, so we picked up a used '08 with almost 90,000 miles for around $18k, and our need became semi-permanent but the damn thing just won't die.

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If you have good enough credit to be prime, then your loan pricing is usually based on one or two factors.


#1 purely your FICO score.

#2 combination of your FICO score and the LTV request.


Therefore, based on nothing more than the scant personal information you provided, you should pay all the sales tax, dealer doc fee (if any), and any other state mandated fees as your down payment at a minimum.

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