So. You're looking to buy a car. One of the biggest things that is a question: what do I need to put down?

Well, there's a lot of factors that go into a down payment. 

• The vehicle itself.
• The miles, age, and condition of the vehicle.
• The length of the term.
• The credit rating of the buyer(s).

The old rule of thumb was that, at minimum, banks expected you to put down enough to cover the taxes and the licensing/title fees. And while that is a good rule of thumb (so that you finance the vehicle, not the taxes or other mishmosh), it is not a one size fits all situation.

The truth? A larger down payment is something that can open up many doors. It can open up more lenders, it can open up a lower rate. But it is not always necessary! Some buyers do need a little bit more, because it's about proving to the bank that you are not going to default on the loan right away. Back in the day (as in a few years ago), some lenders would do 84 month terms with very little down. That's...a bad idea. You're paying for a long time on a depreciating asset!

Contrast that with a (theoretical) client who gets a newer model year vehicle and puts down 20% on a $26K rig. The client will be in a position that, if desired, the vehicle could be traded in and be in an equity position after a year or two. 

BUT!!!

There are situations where you may be in a bit of a bind. That's no issue whatsoever. We can help either way if you need to put a little less down at the start. Whatever it may be: we want to help you!