What is the Right Amount for a Down Payment?

By Product Expert | Posted in Finance on Tuesday, May 5th, 2020 at 2:15 pm
Man calculating some bills

Buying a car is a very complicated process, or at least it can seem complicated. There are a lot of things on your plate that you have to consider, so it is easy to feel overwhelmed. It takes a considerable amount of work to research and vet a car to make sure you are getting the exact one that you need. 

After doing the leg work of finding a car with the right features and price, you have to start thinking about how you are going to pay for it. Financing a car can feel extremely scary if you have bad credit or if it is your first time doing it. One of the biggest questions is how much are you going to put down? We’ll show you what you should think about when calculating a down payment. 

Down Payment Tips and Tricks 

Obviously, putting down as much as possible is a good idea, but it’s not that simple for most people. It’s hard to just drop a few thousand dollars out of your own pocket and be able to have things work out just fine. It is important to put something down, though. So, how much is the right amount? It is a tricky question to answer, but there are some guidelines you can follow. 

Family discussing a car with a salesman
Hand signing some papers

The first step is to figure out your finances and what you can afford. Generally speaking, the more you put down, the lower the monthly payment can be. For every $1,000 you put down, the monthly payment should go down $20 as a general rule. Finding the right balance between a down payment and monthly payments will help to create a much more manageable situation. 

Where Do Luxury Brands Come From?

Car Financing in Toronto, ON 

Stop by Bell Auto to let us help you figure out the best car for your finances. We will be happy to help out with whatever you need, so reach out and give us a call. 

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