How Much Money Should You Put Down on a Car?
You should put down at least 20% of the purchase price on a new vehicle and at least 10% to 15% on a used vehicle. This upfront payment offsets early vehicle depreciation, lowers your financed principal, reduces monthly payments, and helps secure lower interest rates from lenders. While zero-down financing exists for buyers with top-tier credit, placing a solid down payment protects against negative equity and reduces total interest charges over the life of your loan.