Is $1800 a good downpayment on a car that costs $4976?

Question

I am debating whether I want to get a second job.I am also applying for higher paying nurse aide jobs and I am considering other jobs.

I went to usedcars.com and saw many nice cars.Is $1800 a good downpayment to make on a car that's 4976?

Answer 1

That would be a good down payment,  but you have to see what kind of financing they offer.  Depending on year of the car, some banks will not finance.  

It might be a good idea to talk to you local bank who you do business with and ask for a unsecured loan if your credit is good.  This way it works out the same in the long run.  You will only be borrowing the $3176 and might get a better interest rate.  You will also be given the title which will make it much easier to sell even if the loan is not paid in full.  

If the place is a buy here, pay here, there prices are over inflated and I would look elsewhere unless your credit is weak.  Good Luck.

Answer 2

That is generally a large down payment. Make sure you don't buy from a buy-here/pay-here lot. Not alot of finance companies will finance smaller autos like that and when you make a large downpayment and still owe they got you in a corner.

Make sure you go to kbb.com and try to pay as close to the TRADE IN value as possible. What kind of vehicle is this?

Answer 3

Well, for a downpayment, thats a large amount. Usually a down payment is about 10%, or for $4976, it would be $497.60. $1800 is over 36% down payment, which is a lot. I think $500 would be a good sized down payment on a car thats not even $5000.

Answer 4

the higher the down payment, the less you have to finance, which will means you'll be saving money on interest in the long run.  But, like the guy above said, it isn't necessary to put so much down.  don't go emptying your savings to put a down payment on a car.