How Much Should I Put Down When Financing a Car?
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- เผยแพร่เมื่อ 14 ต.ค. 2024
- If you're thinking of financing a car and don't know how much you should put down, watch this video.
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Man, you are doing such a great public service. Keep up the good work. Next time I'm in the market for a vehicle, I will hit you up.
He should say also you can only make these demands if you have all the cash or good credit
He didn't say anything about making any demands. He clearly states that this is if you have super super low intrest Wich you only get with GREAT EXCELLENT CREDIT
@@jamesdawny1855Why get hung up over 1 word when what he says was absolutely correct? You *can* make demands when you hold all the right cards for the upper hand. The wealthy and well connected do it all of the time.
He clearly said, it's a case by case basis! Everyone has a different/specific case at that time.
Don’t need good credit
I bought my Lexus with no money down at 0%. I had the money to buy cash, but I decided not to give up my cash and instead just pay the monthly payments over three years.
We are going to pay cash on our Lexus Hybrid arriving next month. Interest rate is too high and we have cash available anyway.
How lol?
@@shadowk4718 take out a credit card with introductory rate of 0%, pay through that 18 months, then balance transfer into another credit card with 0%……or borrow money from mama with 0% interest over the next 3 years……He or she didn’t say how much the Lexus was though, it could be a $10k Lexus or $52K Lexus, in theory they are both Lexuses.
Back in 2017 i bought my 2017 Lexus ES350 in cash, Lexus were offering $3k rebate in lieu of 0% interest. I took the $3k and pay it in full.
@@jml9550 telling someone to buy a car with a credit card is a terrible idea!
Nice video ❤ I just financed my new Camry after so much stress first was the money then is was paystubs and bank statements which I had to pay a vendor online
I’m having same issues pls I need a name
Deels cafe
I saw people talking about dude
On I. G
just get your credit score up to700 and not only do you not need money down but your APR will be under 4% in any state.
Not true with today’s interest rates.
What if you have a 700+ score but only 2years worth of credit history
I got a score of 797 can I get a whip with zero down
I just got approved for a car loan. 5.99% for 48 months. My credit score is 829.
@@davidrodriguez5280How much you putting down and how much is the loan for? If you don’t mind me asking.
Absolutely not one dime.... it's against the law to even be asked for a down payment..but they ask because they know you don't know it's against the law..
Definitely not illegal. If someone tells me they don’t want to put any money down then cool I’m ok with that. It doesn’t affect me whether they put money down or not. It’s not them or me who dictates whether they need to put money down or not it’s the bank. If they are a 4-500 beacon trying to get a decent brand new car or any decent car in general and financing it most likely banks are going to ask for down payment POI etc. YOUR CREDIT DICTATES ALMOST HOW EVERYTHING GOES!!!! You can say you want to be XYZ a month all day long but if you have trash credit your payments are bound to go up. Sign it up make your payments on time for 6 months to a year refinance down the road for better rates and your payment will be lower because one by then you’ve been making your payments on Time and as long as you haven’t put crazy miles on it the bank will still be willing to finance the vehicle and maybe will get a lower interest rate.
Awesome man, was wondering if I should put down 10k or not, now that I know I’m probably gonna have 10-13 percent interest (first time buyer/ no credit score) I think it’s best I put down the 10k
U could also ask the dealership if they do interest free auto loans and if they say no then do ur research if they’re lying or not. And there’s a website that can provide which car models u can get without interest fees.
What people seem to not understand is that the more you put down, the less you pay in interest over the life of the loan, which makes the financed vehicle cheaper.
You may not understand opportunity costs if interest on the car is your only measuring stick
@@deshonedrummond opportunity cost is a fair argument, as a person could put $20,000 into $SPY or $VTI vs a down payment and earn 8% over the next 30 years. But it depends on the persons overall financial situation. But it should be noted that money in the market is a gamble and returns are not guaranteed during a particular market cycle. And bonds are paying high yields right now but they won’t always
@@ricardobarrientos2830 the apr only applies to the amount you have left, since that’s the amount you’ll borrow
Better yet, save that down payment cash just in case of a life emergency and just extra towards the principal every month
or...you pay no money down, finance it out as long as you want, no penalty for early payoff and pay 3 payments a month and pay it off quick...and still not pay much in interest
You should put down 0% down and pay cash. Even if you have cash never finance. If the market drops it’s nice to know you’re debt free and no stress.
There is no stress to financing something unless youre an idiot who buys stuff you cant afford.
Let the bank take the risk with the money. I'll keep my cast invested.
@@Platinum-Ninjafinancing things that go down in value isn't making you more money than the market. After you calculate depreciation and capital gains you're losing money. That's why banks have nicer buildings and furniture than you.
@@rossta3949aren’t you loosing money regardless? Not like you’re buying a car to make more money
@@rossta3949well no shit, otherwise they'd call it "investing" 😂
@@fantastopotomus Once you drive the car off the lot it depreciates 20%, you already lost money, better to put down as much money down to keep payments to a minimum.
Really depends on your cash flow, taking a loan just breaks up the price into installments. Use the whole 48 installments or pay it in 5, it just frees up cash to be used elsewhere. But if you wipe your a$$ with $100 bills it really don’t matter what the loan terms are. 5 bills 3x a day and you’re only spending half a million on tp a year!
I got a new car right before Covid hit at 2.75 APR. Not looking at another new car for a while until rates start coming down.
that’s crazy, i have good credit and they told me i’d have to pay 9 percent
Or go to your credit union and pay no money down and obtain the best rates 😊
@@mr.gamewatch8888
Yup... The fact you ask means you don't know
@@mr.gamewatch8888
Sorry I thought you trolling... Yes your credit union will give you the best interest rates... Go get pre-approved and they will give you a bank draft and you take that to a reputable dealership to buy a car... You will already know your interest rate and how much money you can spend...
Did that last car I bought, check in hand, went to dealer and they gave me 0% for 60 months crushing the CU Rate.
@@NoOne-zo6gjholy
@@NoOne-zo6gjCompletely agree with you. Depends on the situation though, if you are getting a used car, definitely go with CU. If it's a new car, the dealership typically can provide the lower rate
A paid off car rides differently than when you owe a payment.
Thank you for helping the average consumer to buy a car with more knowledge. ❤❤
Thank you brother for sharing your knowledge ❤️
Never put money down in most states. If you want to and owe money on your current ride, put the money on your current loan. This way you wont pay sales tax onthat amount
Explain ? Wouldn't you still pay sales tax cause you are putting money torward the loan after you already pick it. I'm confused. I thought putting more money down was a good thing ?
@@jamesdawny1855it is. These aren’t smart with it or they’re just trying to find awkward “loopholes “ which rarely works out
Definietly putting more money down is a good thing, because your down payments gets subtracted from the price of the vehicle. Then that difference gets sales tax on it. It is always beneficial to have more money down. Usually more than half of it comes back in the form of positive equity.
And a good paying steady career helps 👍
This is A1 info. Thank you for this.
Appreciate it. Just getting started 💯🙏🏾
It about your credit score
Thanks for your content
I feel it’s best to put a good amount Down, and keep up with the payments also extra money that you receive goes into the car.
My Motorcycle i financed was $10k had to haggle with it though. I put $4,500 down, my monthly is $132 but my cousin suggested I paid $150 and kept up until the system fucked up on me. I had to pay off missing payments but after put it on automatic payment and it’s a breeze.
Also input $2,000 Principal into the bike I have $2,308 left as of the next one. I’m looking for a good Modern Model Truck as I have been driving in a 2002 escape.
I don’t care if it has been used I haven’t been able to ride or carry my bike so I really do need one and would appreciate all the luxuries of Modern Models.
I have my eye on a 19 Tacoma but I want to wait until I finish off paying my bike.
I have heard that a down payment on a car is not a requirement to purchase a car. I have actually heard that when a car dealership requires you to make a down payment, the car dealership is breaking the law.
Is this true?
I've heard the same
@@Ezvy I know that you are not referring to me in your comment, correct?
@@Ezvy here you are again can’t comment without trying to insult. That’s the 3rd comment I saw from you and it was negative. That tells me everything I need to know about you. Sad 😞
@@Ezvy Listen jacky, you don't know me so I would suggest that you keep your negative comments to yourself.
@@Ezvy You are obviously one sad excuse for an individual. It’s a real shame.
This Man 👨🏽 knows what he is talking about and I will listen to him and I don’t even drive a car 🚘 never driven a car in my life I let the New York City 🏙️
Ideally you want to pay as little interest as possible but how much interest is too much to pay say for. 15k car? Like what % of the price of the car is you got scammed territory ?
Great Video. Thanks!
Lots more coming. We're just getting started 💯 Thanks!
My credit union rates suck right now new car is 7.5% for excellent credit. I will go with manufacturer instead.
shopping for a new car now and my credit score is A1 so no worries here but always make sure u see the out the door price on that vehicle never use imma pay cash always use your trade in as a last result and double check that out the door sale if theres add ons ask the sale rep to have them remove or one is walking 💯
Same thing with a mortgage. Years ago. The good days
I’m paying 2.99 interest I get 4.35% in high yield saving. I rather finance always. And when decent rates return to near zero financing almost is a no brainer.
For me the faster it can be paid off the better, whether money up front or low interest rates, pay it off soon and make your money work for you not the banks
But does it also depend on your credit that determines how much u need to put down?
You are correct if your a non business entity, I’m self employed so it is indeed deductible…
Is insurance included in the fiance charge ?
I think this a salesman pov, as the consumer you shouldn’t even want to put anything down
Banks recommend 20 to 25% down always helps to keep you in almost equal position especially if you don't cover your taxes and fees.
Do you have a !simple purchase plan
Money just sitting in bank.
The interest rates to finance are too high to not pay cash.
I had an auto loan from credit acceptance, Made perfect on time payments for 5 years from May 2013 - Oct 2017, How can I leverage that?
I don't put money dwn or pay sales tax on a vehicle
How?
Yes. How?
@hott rod of course you don’t you buy in cash from Craigslist or other sites not dealerships but if you go to a dealer you will pay taxes
U still paying sales tax.
Same is more true for mortgages (potentially being loaned money at very low interest rate) plus u get a tax break. For some it’s much better to never pay off their mortgage if they are otherwise investing that money and getting a better return. Most people though do t actually invest and are probably best just not paying interest even if the rate is low. Definitely a person to person bias…and good u mentioned that.
What junk fees I shouldn’t pay for when financing a car
What do I need to finance a car and how much money do I need to earn annually to pay a car costing 65k?
Full coverage insurance eats your investment when not paying cash
Great advice 👍
Lots more helpful tips coming 💯
Facts 💯🔥
There are two zero down payments, from decade and half experience. On a rate higher than .9% put zero down towards the car equity/balance with only applicable taxes and fees out of pocket.
If you keep a car less than 8 years fully paid off or not, it's best to lease the car you like when the manufacturer is doing both a subvented lease with an inflated residual. This will save you approximately $15k on maintenance for nonluxury and $25 on entry level luxury car every 8 to 10 years. With the added bonus of being approximately 40% cheaper than buying and owning that car over 10 years
Forgot the other zero down, only on zero percent interest do you finance taxes
20% Don’t pay interest on the taxes and fees. Pay them upfront
Never ever ever put money down on a depreciating asset. If you must put money down to get the payment to a certain point, you're already paying too much for the car or buying too much car. Period.
What should you do instead?
@andrewclark145 Make sure you can buy it and afford the payment without a down payment. If not you're buying too much house, car, or whatever. Of course you need the disposable income and credit scores.
That makes no logical sense. You should never buy depreciation assets ever by that logic and only buy appreciating assets. And why would you want to pay more by taking a loan on a depreciation assets versus just paying it out right.
@@Lagann0 Only in a fantasy land would no one ever finance a depreciating asset. Serious discussion only.
@@thegodblogger3812 how do you think the world works? Things are based on savings so you can borrow from the bank ..
Need a help on a question, If I paid by check or bank check, does the dealer have the right to ask you for your social sercuity to run you credit even if I am paying by check or bank check
I would advise no one to put available cash on a depreciating non asset…use it for those absolute emergencies, buying a vehicle is not and emergency! I have never and will never provide a DP!, hell folks, your interest is deductible at tax time in some cases!, let the lender provide the funds…if the payment is to high your shopping for the wrong buggie!
Y'all giving bad advice. If you buy a 26,000 car at 8% 72 months 700 a month. but you can put down 1000 and that lowers your monthly
That interest is not deductible on a 1040… what are you talking about 🤦🏾♀️😂
Yeah it’s against the law to put money down! PERIODT!!
One on one session please I have some questions I believe you maybe able to help me with.
Hope you’re well. I don't offer one-on-one services or consultations. For car shopping help and free resources, open the Cars From Home Toolkit here ➡️ www.CarsFromHomeToolkit.com. God bless 💯
Could i get back lash if a deal wasnt finalized. Bank told me to return the it to dealer
Doesn't your credit score mean anything? I never hear anything mentioned about it.
Thank you
I got you 💯🙏🏾
I’d rather buy outright, especially considering that it’s a depreciating asset. I’ll take the opportunity cost of that money being able to be invested elsewhere.
So I don’t have to make a down payment when I’m financing through my credit union this is my first time with all this and no one around me with the knowledge wants to help me so I’ve been trying to get the information on my own I assumed I needed money for a down payment regardless of taking out an auto loan and financing
How do you get these sub vented rates?
i need help. .lol, my credit crashed due to job loss, so i dont have many options. I'm being asked for at least $2500 down.
What car?
Get a beater car...
Dealer dude was giving me crappy rate like 6%. What to dk about that??
I have question I don’t have all the cash to purchase my car but I have a big portion I have 10k and the car cost 15 what should I do? (I’m 18) any advice?
What if u pay the initial fee to fet a bussiness permit( u just kinda ignore the bussiness ) put put a decal on your leased car & write off miles & car payment - idk a tshirt biz where u just outsource ur orders online so investment in stock & payroll - sounds to easy imo but def intrigues me -is thier a way to pull it off legally?
What if they audit u and see there is no business. Just pay the amt and be done. Speaking from a 60 yr old plus.
It's illegal for the dealership to require a down payment ONLY THE BANK CAN ASK FOR IT MAKE SURE YOU KNOW YOUR RIGHTS THATS WHY THEY BE GETTING US
It’s important to consider arbitrage, but if you just don’t want car payment, then I would save the struggles and hurdles and just pay cash. Yes, it might not be the best mathematical decision, but it might be best for what you wanna do.
Why when calling dealers asking prices on a vehicle listing on inventory they refuse to give prices over the phone just to tell you to come to the dealer and see
Face to face they can brier beat ya.
I ain’t leaving until u buy this car. Sit down. Shut up and sign. Smiles.
Absolutely right!
💯🙏🏾
Why do people put money down on cars? I got a 13k out the door car at 2.9 interest and put $0 down. Monthly payments of $220. The car had 47k miles and it’ll last me about 9 years until it reaches 200k. Only thing I need to do is oil changes which take me about 1 hour every four months and cost me $30 dollars from Walmart (filter and synthetic oil).
1st person in history that doesn't need brakes, tires, wipers, fluids, etc
Not all cars last 200k -y mechanics son sentra transmission blew @105k & my wife's co worker rouge blew @ 130ish - I'm assuming they weren't driven hard , but idk - but imo it's a big assumption a car can last 200k plus here in central NY cars rust out after 10 years due to salt & some counties use sodium chloride which is worse + the extreme cold & heat during the yearskes parts contract & expand which leads to breakdowns - that's y when I'm down south visiting & see a 2004 maxima that's clean I do a double take bcuz that year car would never last up here
@@familybusiness1417 the mirage is 2500 pounds and average cars are 4000 pounds. The front brakes might be replaced every 100k (might). Tires are 400 to replace the entire set and only at 60-80k miles. Transmission can last the 200k assuming you’re not driving like a teenager. Wipers are 20 dollars… Coolant is 20 dollars…
But tell me again how buying a new 30-40k car is required.
@@notoriousLSGshow you got me with the rust. I’m on the west coast so I don’t come across that issue. But if you bought a small car then there would be no issue since it would be light on the transmission. I also had a busted Sentra cvt at 80k. Sold for a mirage and now I have a simple reliable car that cost next to nothing to upkeep at home.
No such thing as free money. Usually, it's a discount or zero percent with no discount. Do your financing. Save, shop then buy. Do not get more than you can afford. Don't forget taxes, maintenance, insurance.
Actually everybody has money in their trust
How much can you get a car or truck for by just purchasing it out right
Obviously those subvented rates are only offered to 700 & above scores?
I just got approved for a car loan. 5.99% for 48 months and no money down.
My hero
I heard in California that u can't pay off cars if u get one now because of interest they don't let u pay of car faster do u know and what is a good van or truck a few years old
What if your credit score is bad and you have no co signer?
Always put a down payment on your car. It will make your monthly rates. Cheaper vehicle payments are expensive enough as it is and the sooner. You can pay the vehicle off the more to the principal the less paid to interest
Ideally you shouldn't pay any down payment. It doesnt go to the car or the loan, it goes to the dealer as a "buy in" *to be able* to get a loan. What it does is lower the LTV so that the bank is more likely to accept the loan app. If you have no problems getting a loan for the full amount of the car, then don't give them free money. Start your negotiations at zero down. If you have all (liquid) cash, that is much more preferable than getting a loan in this economy. The secret and brutal truth is that if you *need* a down payment, you can't afford it. That said, if you are worse off by not having a car, then do what you have to do. If you ALREADY have a car, and you're not upside down on some wacko pandemic-era loan terms. You should NOT be buying a car right now, period.
You should only worry about the return on investments vs the interest rate of the loan if you have the liquid cash to pay it all on the spot, right then and there, and you are also otherwise financially stable/secure.
And here I thought that putting a down payment on a car would reduce the sticker price but since one random guy on the internet said it then it's gotta be true right? ( Spoiler alert no it doesn't )
Nice love it
🫡☝🏾🙏🏾
So, used bmw 3 series 2011 coast 8,500 my credit score is 590 is 2,000 not good enough down payment?
No you want to be at 50 % or more due to your credit score since you will probably get hit with a high APR. either clean up your credit to avoid paying double for the car in interest or up your dp to at least 4-5k
Getting a "low rate" is usually scam. I can sell you Toyota Corolla at 0% interest for 100K all day but it isn't a good deal.
What about the law that sais you don’t need a down payment for a credit transaction dealers do it anyway
That video lied to y’all
@@DeshoneTheAutoAdvisorthen why is it in the 1968 truth of lending act then ?
Excuse me, Deshone. But, I'm attempting to reserve my seat. My email didn't work. My Marine veteran husband's email which is his full name and number of his gunner position, either... What's cracking?
Hey there. What error are you getting?
Risk is left out of the equation.
12 USC 1431. I don't see lending...🤔😔
I dont put a dime down. they'll either give me a good final price, a good APR and all the rest of my demands, or i'll go somewhere else.
I have perfect credit and either they WANT to sell a car....or they dont
Zero. You don't need or want to put money down on a car.
It's actually not required...
Why wouldn't you tho? I don't get it
@@jamesdawny1855
Save your money to actually pay down the principal.
There's no need to put cash down up front. It's a scam.
Exactly, it’s actually illegal for them to tell you to do so
In regards to the 20/4/10 car rule I genuinely don't understand how that rule would work for the vast majority of the population. If I'm making $3,000 a month then I can only put $300 towards gas, repairs, insurance, and payments? That's literally impossible.
Free game 🔥🔥🔥
Lots more on the way 🫡💯
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You never said how much to put down
Like he said it depends, it’ll vary depending on what YOU want. A flat percentage wouldn’t work for everyone especially with different credit scores and what you’re willing to pay in interest over time
Just got my new Tesla for 1.99 apr heeeelll yehhhhj
Do not use Ally Bank
Take off blind fold buy cash
✨🙆🏽👀❤️‼️🔥🔥🔥Would LOVE The HELP🆘
Appreciate it! Watch my videos or come to my free online Masterclass. You'll learn how to get the BEST DEALS on your car, SAVE MONEY and learn how to car shop FROM HOME without buyer's remorse. Register for FREE at www.carsfromhome.com/car-shopping-masterclass ⚠ Only 250 FREE slots available! So register now so you don't miss out!
It’s not the bank money tho
Let’s start there
0
I need some help
Hey there. I don't give people full strategies here in the comments, as I get way too many, but I’d suggest you attend my free Masterclass “Car Shopping Secrets” to start learning, especially if you need a car in the next 12 months or less.
You can register here for FREE ➡️ www.carsfromhome.com/car-shopping-masterclass
This live FREE online class is limited to 250 seats so I suggest you save your spot now and show up early.
The higher the rate, the faster that you want to pay that loan off. The lower the rate, the slower you pay it off.
Zero. If you can’t pay it off on 60 months you cannot afford the vehicle. Leasing or put another way renting is for wealthy people. Do not lease!
You do not want to try to figure this out at a dealership