Downpayment required on used car?

[hopefulfirefly]

I've never purchased a used vehicle before, could someone tell me what % of the purchase price is typically required for the down payment? Thank you!

[swaymonae]

What price range are you looking at?
Do you have a trade in?
If so, What's the KBB trade-in value?

[disneysteve]

Last time we put down 100%. I guess that doesn't help answer your question, though.

[hopefulfirefly]

Originally Posted by disneysteve

Last time we put down 100%. I guess that doesn't help answer your question, though.

You're correct, that doesn't answer my question and it appears to serve no purpose other than to pad your ego a little more. Congratulations you put down 100%!

What price range are you looking at?
Do you have a trade in?
If so, What's the KBB trade-in value?

I'm not sure. That may depend on the downpayment needed & interest rate available. I don't have a trade in. Thanks

[swaymonae]

Originally Posted by hopefulfirefly

I'm not sure. That may depend on the downpayment needed & interest rate available. I don't have a trade in. Thanks

OK, well to give you an idea, last car I bought was $19,000, down was about $3,200

Car before that was $14,000, down was roughly $2,000

[tripods68]

Originally Posted by hopefulfirefly

I've never purchased a used vehicle before, could someone tell me what % of the purchase price is typically required for the down payment? Thank you!

That's really up to you. Everybody is different which will depend on how much you can afford (monthly payment) or how fast to pay off this loan. Not knowing your financial situation, a good rule to have: Don't finance the car no greater than 3 years.

[bjl584]

I don't think there is a written rule. Your down payment won't effect the interest rate or other terms of the loan. I would put down as much as possible though. It will help to keep your payment low and will allow you to pay the car off a lot faster.

[noppenbd]

Originally Posted by hopefulfirefly

I've never purchased a used vehicle before, could someone tell me what % of the purchase price is typically required for the down payment? Thank you!

Are you a credit union member? My credit union is offering 5.5% financing, no mention of a down payment amount so I'm guessing they don't require anything down. If you aren't a member of a CU, I would join one just for this. Their rates tend to be much lower than banks.

Penfed is a very popular CU, and they are offering 3.99% financing up to 60 months, with 100% financing available. Anyone can join Penfed by becoming a member of NFMA (costs $20 a year).

[hopefulfirefly]

Thank you for your helpful replies I wasn't sure if there was an amount I had to put down (like the standard 20% for a home). Thanks!

[noppenbd]

Always arrange your financing beforehand if possible, it gives you a more straightforward negotiation (because a dealer will try to negotiate on a monthly payment basis rather than a total purchase price).

[disneysteve]

I'm wondering if one's credit rating enters into this as far as how much of the purchase price you'd be allowed to borrow. Does anyone know if that matters?

I also agree with tripod that you shouldn't purchase any car that you need to finance for more than 3 years regardless of how much you end up putting down.

[GREENBACK]

The Op's original ? is how much is typically required. Is their an actual requirement? and if so what determines this? I've bought numerous used vehicles over the years( I've actually never bought new) but I always paid cash or was ready to make a big down payment anyway. A required down payment amount wasn't dicscussed.

[GREENBACK]

Originally Posted by disneysteve

I'm wondering if one's credit rating enters into this as far as how much of the purchase price you'd be allowed to borrow. Does anyone know if that matters?

I would assume it would. It would be similar to any other financed big ticket item

[disneysteve]

Originally Posted by GREENBACK

I would assume it would. It would be similar to any other financed big ticket item

That was my thought. Maybe someone with a 780 could put down 5% but someone with a 650 (just picking random numbers here) might be required to put down 15%. So I'm not sure there is a set answer to your question, hopefulfirefly.

[red92s]

Originally Posted by disneysteve

I'm wondering if one's credit rating enters into this as far as how much of the purchase price you'd be allowed to borrow. Does anyone know if that matters?

I also agree with tripod that you shouldn't purchase any car that you need to finance for more than 3 years regardless of how much you end up putting down.

With under a year of credit history, Capital One approved me up to $5,000, 36 months, at 9%. I paid the rest of the vehicle price in cash ($2,700) and paid the loan off in 16 months.

[tripods68]

I don't believe your FICO dictates how much down payment you will need. Again, that's entirely up to you as "buyer". FICO does affect what interest rate you will end up financing the purchase.

[disneysteve]

Originally Posted by red92s

With under a year of credit history, Capital One approved me up to $5,000, 36 months, at 9%. I paid the rest of the vehicle price in cash ($2,700) and paid the loan off in 16 months.

Originally Posted by tripods68

I don't believe your FICO dictates how much down payment you will need. Again, that's entirely up to you as "buyer". FICO does affect what interest rate you will end up financing the purchase.

I guess credit history/score just determines how much you can borrow and what rate you'll pay, not how much of a down payment you'll need, so that doesn't answer the question either.

[Pitman]

I'll say atleast 15%, but I do encourage you put down more.



btw, whatever quote the dealer is pricing, talking them down lower.