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How Much Should I Put Down for a Down Payment on a Car?

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

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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.

[ Get Approved for a Used Car Loan Online at Broadway Credit ]

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.