Your Auto Loan Down Payment

If you are financing a vehicle, unless you have zero percent interest, you want to put an auto loan down payment on the vehicle. You should probably consider putting a 20% car down payment in order to not end up owing more than the car itself is worth.

When considering how much you want to put up for your car down payment, think about what you need the monthly car loan payments to be in order to remain solvent. If you need your payments to be small, perhaps you should put down a heftier auto down payment.

If you don't mind large monthly payments, possibly your upfront auto down payment money can be used in better ways, for instance, paying off other high-interest debt. Consider how different payments will affect your monthly budget and how long you will be paying off the auto loan.