Is there a limit on down payments?

Is there a limit on how much your down payment for a car should be? I want to make a down payment, but I'm not sure how much I should pay.

“Nope, there’s no limit on how much your down payment can be.
You could put 99% toward the loan, finance the remaining 1%, and that would be just fine.
As a general rule, you should probably put down at least 20% on a new car, as this will lower the amount of interest you pay over the life of the loan.
Any more than 20% is entirely up to you, but the more you put down, the more money you’ll save over the life of the loan.”
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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