How much of a down payment do I need for a car loan?
I currently have about 1500 saved up for a new car… I have never had an auto loan before. I do want a new 2015 Honda Accord… I only have credit cards on my credit about five of them… And started my first credit card when I was 18 years old. I'm 21 now… I have about a 750 credit score how much more of a down payment do I need if I don't want that high of an interest rate?
You should be looking at at least 20% down, but some lenders will go down to 10%. Since a new Accord starts at about $22,000, that means you need another $700 to get to the 10% mark (not including tags, taxes, and you should get Gap insurance - so maybe another $1,000).
Try calling a few banks an d credit unions to see if they have any good deals and what they require.
A brand new car is going to be either a huge monthly payment or paying for 6-7 yrs - the car price should be no more than 35% of you annual income - if it exceeds that, you're spending too much - look for a 2-4year old car
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