Money down on a car is another term for a down payment. Depending on the type of auto loan you apply for, a down payment may or may not be required.
Can You Get a Car with No Down Payment?
There are instances where you don't need to make a down payment to finance a car. For example, if you have excellent credit, you don't typically have to put any money down. You're not as big of a risk when your credit is good, and lenders may offer the option to put no money down. But, even if you have that option, we still recommend you make a down payment.
On the other hand, if you have bad credit, you usually can't get around the down payment requirement. Subprime lenders nearly always require a down payment, but it isn't an unreasonable amount -- usually $1,000 or 10 percent of the vehicles selling price, whichever is less. You don't need to shell out thousands of dollars to meet the down payment requirement, but if you can, you should put down more than the minimum.
Why is it Better to Put Money Down on a Car?
It may seem like a waste of money, but a down payment is there to help - not hurt - you. If you're able to budget for a sizeable down payment, say close to 20 percent, you could see three big benefits to this:
The Bottom Line
A down payment can help make a car loan more affordable in the long run. The trick is to plan a budget ahead of time. Once you have money put aside for a down payment, you can start assessing how much car you can afford.
If you're ready to get the car buying process started, but worry your credit is in the way, let Auto Masters of Murfreesboro help. We work hard to help you with your unique situation to get you financed. Start today by submitting our easy and secure car loan request form.
Charles Higgins has been in the automotive industry now for over 17 years. He has built a career by helping people with unique credit situations get financing. Charles believes everyone deserves the chance to build their credit while driving a reliable vehicle. Contact Charles today for your all of your credit needs.