How much downpayment do you need for a used car?

[JohnCU]

I'll have about $3k to put down so I figure that should help as well.

 

[shopbruin]

i bought a honda accord (2007, SE) for 18,500 so a little under 21,000 out the door.

i put 3k down, and i financed through honda financing. my credit score is a lot higher than yours (i'm over 750) but they said they could "only" give me 7.5% because my credit history is just credit cards and student loans. my payments are only 360 a month over five years. i'm just trying to pay it off faster.

something to think about. the payments aren't that bad for me and i really like my car.

 

[Kaieye]

Why not buy a cheap used car for around 5k instead? It may not be the nicest looking vehicle but it would do wonders for your finanancial health.

 

[JohnCU]

Originally posted by: Kaieye
Why not buy a cheap used car for around 5k instead? It may not be the nicest looking vehicle but it would do wonders for your finanancial health.

like i said, i make more than enough to cover everything.

 

[jevans64]

Originally posted by: JohnCU
I'll have about $3k to put down so I figure that should help as well.

That should be plenty for a down payment. I assume this RSX will be used and not new. Depending on the year of the vehicle, you will be limited to a 36 to 48 month loan and the APR could be as high as 13% based on your credit score. It might be wiser to try to buy a domestic brand ( if located in the US ) than to go for imports which are in high demand. The US automakers are hurting now and you probably can get a cheap new vehicle with no interest or with big incentives.

The first thing I would do if you haven't done so already is to get a fresh credit report. You will need at least a 720 to get prime rates and expect to add a quarter point of APR for each 10 points below that. Lenders look at how much credit you have vs. your salary and the percentage of that available credit that is used. If those student loans and credit card are near maximum then there is nothing you can do other than pay them off ASAP. It will take about 6 months for any major payoffs to impact your score.

Look at sources other than traditional banks or the dealership for financing -- like credit unions -- which offer lower interest rates.

When I bought my domestic A to B vehicle ( Pontiac Sunfire ) my score was in the upper 700's. The total cost was over $21K loaded with everything I could get in it. I was offered either 0% APR for 36 months or 5.9% plus $6500 in incentives ( including a GM buyer discount and employer fleet discount.) If your employer offers fleet discounts ( 10% to 15% ) to you then this is a good reason to choose a domestic brand. I went to my local credit union ( which I have been banking with for over 20 years ) and they gave me 4.2% for 60 months. So I got a brand new car ( loaded with all the premium upgrades ) for $15,300. At that time I was also looking at imports but there were no incentives available AND they generally cost more.

 

[compuwiz1]

OP, how's your credit?

You should never finance tax and license. At least put that down.

 

[JohnCU]

Originally posted by: compuwiz1
OP, how's your credit?

You should never finance tax and license. At least put that down.

like i said: $3k down but just out of college with some CC debt, student loans, but a job that pays very well ($56.5k/yr)

 

[ponyo]

Originally posted by: JohnCU

Originally posted by: compuwiz1
OP, how's your credit?

You should never finance tax and license. At least put that down.

like i said: $3k down but just out of college with some CC debt, student loans, but a job that pays very well ($56.5k/yr)

Then you should pay off your CC debt in full and buy a cheap car w/ cash. If your score is around 600, you're going to get raped on the interest rate and used car rates are crazy high even for A+ borrower. Unless your rate is at 0% or close to it as possible, paying cash in full is the way to go.

 

[ImDonly1]

You want to put down $15,000 - $18,000 on a used RSX. You do know that RSX's sell for that much, so there is no need for payments.

 

[compuwiz1]

Originally posted by: ImDonly1
You want to put down $15,000 - $18,000 on a used RSX. You do know that RSX's sell for that much, so there is no need for payments.

I think you guys did not understand his post. He is looking at buying a 15-18k car, not putting that much down.