Is it worth it to make a very small down payment on a car loan, such as $500 or $1,000?

Is it worth it to pay a small down payment? I've heard that you should always make some sort of down payment on a car loan. However, I only have about $500 or $1,000 to put toward the down payment.

Answer
“That’s highly dependent on the value of the car.
If you’re buying a $50,000 car, a $500 down payment won’t make a ton of difference on how much interest you pay.
But if you put $1,000 down on a $7,000 car, that’s going to make a huge impact on your loan and loan payments.
So there’s no steadfast rule as to whether putting $1,000 down on a car is worth it.
As a general rule, you want to make a 20% down payment on a vehicle. If you can’t afford that, consider other options, like leasing.”
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Eric Schad
Answered on Jul 01, 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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