Whether you finance through the dealership or you secure your own financing through your bank or an online lender, you may be required to put up a down payment on a vehicle. If you are not required to pay a down payment on the vehicle, it may be in your best interest to do so.
A car down payment is essentially a percentage of the overall cost of a new or used vehicle that you pay at the time of the purchase. The size of the down payment can have an impact on the interest rate, terms, and all the other details associated with your car loan. The more money that you have available for a down payment, the less money you will need to finance and the better terms and conditions you may receive. If you have an older vehicle that you would like to trade-in, you can use that trade value as a down payment on your new vehicle which may mean that you will have to spend less of your liquid assets to cover the down payment.