PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
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.
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A big
down payment
on a car isn’t always necessary, but it will typically put you in a position to get a better deal from the dealership. 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. 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.
Keep in mind: Financing your vehicle directly with a dealership isn’t your only option. Shopping around with other lenders and getting a preapproval can often give you more negotiating power at the dealership.
Also be aware that the lender will require insurance on your financed vehicle, so be sure to shop around for
car insurance
, too—and factor in those costs before deciding on your ultimate down payment amount.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
