What is a typical down payment on a new car?

I've got about 15%. I wanted to wait a bit longer and make a bigger one, but circumstances won't permit this. I'm sure this is acceptable, but I'm wondering what is typical.


I'm asking what is typical. I know the higher the better, I know I don't need one at all.


15 Answers

  • 1 decade ago
    Best Answer

    I asked myself this same question the other day.

    I purchased a 1999 Tahoe back in 2004 for 12k. By the time I was tricked into adding GAP insurance, extra warranty, LoJack etc I was looking at 18k. I had put down $4000 and I was financed at 8% for about $14k. So that added $3200. When all was said and done I paid $14k, plus $3200 in finance charges, plus the $4k I put down. Which is $21200. My payments were 297/60mo...which is $17820.....PLUS my $4k down...so actually I paid $21820.

    Ive done the math and putting down $2-4k usually only saves you a couple hundred bucks to maybe $500, which could only be around $10/mo. Had I not put the money down I would have been financing about $17820k.

    That would be around $355/mo lets say and cost me about $3720 in charges.....appox. $500 more.

    So based on that, my total payment will be very close to the same....

    Id rather put the 10-15% into a good mutual fund or stock that consistantly earns 15% a year for 5 years.

    If you put $5k into a stock that earns 10%...after 5 years you will have over $8k and would have made $3k...

    which is what you end up paying in finance charges..

    So 5 years later you get to keep your down payment AND can break even or come out ahead if the $5k grows at 15%/year.

    If you put down money, yeah your payment will be lower, but all that money youve worked so hard for goes down the toilet.

    If you need to put 10k down on a 40k car to get the monthly payments into what you can really afford, then maybe you shouldn't be driving a 40k car.

    Thats just the way I look at it.

    Source(s): Me....someone correct me if I am wrong.
  • 3 years ago

    Typical Car Down Payment

  • 1 decade ago

    Certain lenders will require a larger down payment depending on your credit. 15% is lot more than many people have to put down. Most cars will also have a rebate which can add to the down payment.

    I would shop around for the best loan rate BEFORE you go to the dealer. After you agree on a price THEN tell the dealer that you have your own financing and stick with that answer. The dealers Finance and Insurance (F&I) people work on commision so they have an interest in you paying a higher rate so they make more $$$.

    Get you financing in place...then find a car...then agree on a price...then go back to your lender and get the money. And don't fall for the dealers tricks of "additional dealer markup" or "rustproofing" or "paint protection"...these are key words that mean you are getting screwed. If they won't sell you a car without this stuff walk out the door and find one who will. There are plenty of dealers out there who want your business.

    Go to the manufacturers website and click on "locate a dealer". Most will allow you to find the car you want and a dealer who will give you an 'internet price" without obligation. A good way to get started.

  • 1 decade ago

    its really hard totell you what a typical down payment is.

    down payment depends on:

    credit score

    past payment history

    past loans etc.

    but mostly your credit score

    most of the time if your a firsttime buyer they have you putdown about a 3,000 payment, thats the average dwn pymt for a car.

    The more you put down the less your monthly payment will be. So base your down payment off how much you can afford monthly. That would be smarter. If you ave a trade-in mostof thetime theres no dwn pymt depends on how much they give you for your car(if its paid off that is) if its not paid off they add it on to your new car loan so it may seem like a great deal depends on how much you have left to pay off on your trade-in. but it doesnt sound like you have a trade-in (just for future knowledge)

    Also remember that usually your 1st year your not paying for the car your paying the interest on it, once you get past that then you pay for ur new car. But they dont tell you that, you can always call and inquire on your payments and they'll tell you about the payments youve made and your payoff amount.

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  • Anonymous
    1 decade ago

    It used to be that 20% was the typical down payment required by lenders but, these days, many lenders require less -- often 0% down.

    The problem with a low down payment is that your car will depreciate in value faster than you pay down your loan. Your loan balance will be higher than the actual value of your car for most of your loan. You'll be "upside down."

    This means if you want to sell or trade your car before your loan is paid off, you have "negative equity" -- you have a negative loan balance to show for all your payments. Further, unless you buy GAP insurance, you will have to come up with cash, maybe thousands of dollars, to pay off your loan if your car is stolen or totaled in an accident.

    In summary, making a good down payment does more than simply reducing your monthly payments. It's more like an insurance policy that protects you from surprise cash problems during your loan.

  • 1 decade ago

    I don't think that there is a typical down payment. It varies from writing a check for the car or getting it with 0 down.

    Try and put down as much as you can. This will save you interest payments.

    If you need the car now, then go ahead and place the 15% down and go for it. I'm sure that there are a lot of people that put down less. Good luck.

  • 4 years ago

    This Site Might Help You.


    What is a typical down payment on a new car?

    I've got about 15%. I wanted to wait a bit longer and make a bigger one, but circumstances won't permit this. I'm sure this is acceptable, but I'm wondering what is typical.

    Source(s): typical payment car: https://bitly.im/sN8Bc
  • 1 decade ago

    In the car business we have an old saying DP=GP which means down payment=gross profit, unless your credit is just horrible you should be able to get approved with no money down. Otherwise your down payment will usually become profit.

    Good Luck

    10 yrs in the biz

  • 1 decade ago

    I didn't make a down payment on my new car at all. The payments are higher, but that is fine by me.

  • 1 decade ago

    In NorthCarolina its around 300 to 1000

    depending on where you go and you credit status i only put down 300 on my truck. I t really depends on who you know

    atleast aroud here any way. I hope this helps you out some

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