Should I put 50% down on a car loan?

Is a 50% down payment too much for a car loan? I want to buy a $32,000 vehicle and I have 50% to put down. I've heard different things about how much you should put down on a car loan.

Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A 50%
down payment
on a car loan is extremely rare. 
Most people put a maximum of 20% down for various reasons. It might be all they can afford, but there’s more at play.
There are upsides to putting 50% down:
  • It will reduce the interest you pay.
  • It will lower your monthly payment.
  • You can avoid negative equity.
However, it also has some downsides:
  • It won’t reduce your interest rate.
  • It will cut into your savings exponentially.
Our suggestion: If you can afford having a $16,000 debit from your savings, go for it. Otherwise, putting 20% down will give you far more liquid funds and might only cost you a few hundred bucks in interest over the life of the loan.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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