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.
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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.
“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.”
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