Do You Have To Put Money Down To Buy A Car?

Do you have to put money down on a car? The quick answer is “No, you don’t have to put cash down when buying a new or used car!” If you have an excellent credit score, long credit history, and are able to budget for the full amount of the monthly car payments, you will not be required to put any money down when buying a vehicle. If you have some bumps in your credit history or bad credit, the lender may or may not require a minimum of 10% down or more of the purchase price of the vehicle at the time of buying the car. Keep in mind, not putting money down when purchasing a vehicle will actually make you pay more for the car in the long run. When financing a vehicle through a bank or lender, any money borrowed will be subject to interest charges. If you don’t at least put enough cash down to cover your tax, title, license and fees. You will be paying unnecessary interest on it as well. The golden rule is, The less money you borrow, the less interest you will pay, the more money you will save. Car-Lotta Remids You – Always try to pay an extra $10, $25, $50, or more on the principal amount when making your monthly car payment. This extra money will add up over time and help decrease interest charges over the length of your car loan.