What's the proper down payment on a loan for a $10,000 Honda Accord?

"What's a good down payment on a $10,000 loan? I want to buy a Honda Accord for $10,000 but I need to finance it. I have $5,000 that I can put toward a down payment but I won't have anything left in savings."

Answer provided by
Eric Schad
Answered on Jul 28, 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.
“The right down payment deals with how much your monthly budget is as well as how much you can afford without depleting your savings.
As a general rule, 20% is the optimal down payment. It will lower your payments and how much you pay in interest over the life of the loan, but it won’t put you in financial dire straits in the event of an emergency.”

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