Recommended Down Payment Amount for Vehicle Purchases
Do you have some money saved for a different vehicle? Not sure if you have enough? Learn the recommended amount you should put down as a down payment for a car here at Broadway Credit!
[ READ MORE: How Interest Rate and Length Affect How Much You Pay ]
Suggested Down Payment Percentage for a Car
Ideally, many experts will say that buyers should shoot for around 20% of the purchase value. By offering 20%, you will be saving plenty of interest as you won’t need to take out a loan for the full amount. Instead, you would only need to be approved for the remaining 80%, thus improving your chances of being approved as less money is being loaned out.
To calculate 20%, simply multiply 0.2 by the purchase price of the vehicle. For example, 20% of a $6,000 vehicle is $1,200.
Of course, the 20% rule is only suggested. It’s always best to stick to your current situation so you don’t accidentally put your finances in jeopardy. If you can’t afford to drop 20% on the spot, that’s okay. The best thing you can do is get as close to 20% as possible.
Finance for a Vehicle at Broadway Credit
Are you ready to finance for a vehicle? At Broadway Credit, we are proud to help drivers from a diversity of financial backgrounds get the car they need. To learn how much you are approved for, as well as find a payment plan that fits your budget, contact us here at Broadway Credit. One of our representatives will reach out to you to offer some assistance.