How Much Should You Put Down On A Used Car?

What the down payment actually does

Your down payment does three things: it lowers the amount financed, it lowers the monthly payment, and it makes a lender more comfortable approving the deal. A stronger down payment can also open up vehicles that would otherwise be out of reach.

There is no magic number

People often hear "20% down." In the real world, what matters is the combination of the vehicle price, your income, your credit situation and the lender's requirements. Some approvals need very little down. Others need considerably more.

Bring the realistic number you actually have available — not the number you wish you had. It saves everyone time and gets you an honest answer faster.

Don't forget the other costs

Budget for insurance, registration, and sales tax alongside the down payment. A deal that works on paper and then breaks because insurance was never priced out is not a good deal.