If you don't put a downpayment on a car does...?

Question

...that mean you have to pay more monthly? does anybody know?

Answer 1

With average credit, you can approximate that your payments will be about $20 for every $1000 financed.  So, if you buy a $20,000 car and put $5000 down, you're looking at a payment around $300.  If you finance the entire amount, you're payment will be around $400.  So, yes if you don't have a down payment, typically your payment is more.  Now, this is just a guideline that I used when I used to sell cars.  However, credit will make this amount vary a little bit but, it is a solid starting point.

Answer 2

Okay, lets say you find a car for 5,000. if you put 500 down, you will only be financing 4500, so your car payment would be a little less than if you had to finance the whole 5,000.

Answer 3

If your credit is good and you have a good job, you can go to the bank / credit union and get a loan for the full amount.  Then the whole RATE would be dependent on your credit score - not on what you put down.

Good Luck...

Answer 4

It's a matter of simple economics...." you can pay me now, or pay me later".  Meaning the more you put down, the less you'll pay per month!