How much money should I put down on a $5,000 car loan?

I just graduated from college and I need a car to get to work. I want to finance a $5,000 car, but I have no credit. How much will I have to put down?

Answer provided by
Eric Schad
Answered on Apr 27, 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.
“If you get approved for a loan—and that’s a big if since you have no credit—you’ll want to shoot for at least 20% ($1,000).
The chance of getting approved is the real issue here, so you may need your parents to cosign on the loan.
Keep in mind that if you do get approved, you’ll also need to budget for car insurance, which will probably be more than your actual car note. Make sure to shop around with the free Jerry app to find the best possible rates.”

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