What is the least amount of money I can put down on a car loan?
"How much money will I need to put down on a car loan? I need to buy a new car but I do not have much savings that I can use as a down payment."
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Answered on Jul 28, 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.
“The amount of a down payment required will depend on:
- how much you qualify for
- the car that you are trying to buy
- what your financial situation looks like
If you make enough money to finance most of the car and the car is not valued at less than its price, you could get away with only putting a few thousand down.
However, this will almost always lead to being upside down on the car loan and to paying way too much in interest. A good rule of thumb is as close to 20% as you can get.”
MORE: How to Buy a New Car
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