How do you calculate a down payment?

"How do you calculate a down payment on a $38,000 car? I'm buying a car from a dealer. They're offering a finance special that allows me to get 0% financing if I put 20% down."

Answer
“Calculating the down payment on a car is easy. Just take the final price of the vehicle and multiply it by 20%, or 0.2.
In your example, the down payment would be: $38,000 x 0.2 = $7,600
At closing, you’d give the dealer $7,600 and would finance the remaining balance of the new car, about $30,400 ($38,000 - $7,600 = $30,400).”
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Eric Schad
Answered on Jul 28, 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.
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