Do car dealerships want a big down payment on a vehicle?

I'm looking at a Honda Civic that costs $25,000. I have $12,500 for a down payment. When I told the salesman, he gave me a weird look and said that was probably too much to put down. I've heard from other people that a large down payment means that car dealers are more likely to give you a deal.

Answer provided by
Eric Schad
Answered on Jul 14, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“It’s actually a split, but in most cases, dealers will gladly take your money.
Without getting into the jargon behind it, the time value of money states that money in hand now is worth more than in the future due to inflation.
Therefore, a big down payment will usually cause a salesman’s eyes to light up. Furthermore, they may also be more likely to work with you on a deal.
As far as the salesman’s reaction, he might have just been caught off guard. Few people make that big of a down payment. The average amount is about 11%.
Take it with a grain of salt. If you want to put that much down, go for it. Doing so will lower your monthly payments and may help reduce your interest rate.
Also be aware that the lender will require insurance on your financed vehicle, so be sure to shop around for car insurance.”

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