"How much of a down payment will I need on a $12,000 car? "

"My gross monthly income is around $3,000, I have $1,000 saved for a down payment, and my credit score is sitting at 680. Will my down payment be enough, or will I need to save more to be able to afford a $12,000 car?

"

Answer
“A typical down payment is usually between 10% and 20% of the total price. On a $12,000 car loan, that would be between $1,200 and $2,400.
When it comes to the down payment, the more you put down, the better off you will be in the long run because this reduces the amount you will pay for the car in the end. Also, don’t forget to factor in the tax, title, and dealer fees, as you will have to pay for those as well.
Ultimately, your down payment will be determined by whatever deal you work out with the dealer and the lender, but you are probably going to need around $5,000 for the down payment and other costs.
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Johnny Puckett
Answered on May 05, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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