Advice on purchasing a car?

I m looking to buy a car that is no more than around $17,500 after taxes.

I wanted to know would it be better to put a large down payment ($6500) or, put down $2000-3000 and just pay a couple of hundred dollars extra on my car note each month?

7 Answers

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  • Anonymous
    9 months ago

    Make a large down payment, otherwise you'll end up in a situation where the car deprecates faster than you can pay it off and you'll be ''upside down'' in the loan until it is pad off. That can have bad consequences for you if you want to sell / trade the car before it is paid off .

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  • Anonymous
    9 months ago

    It's a trade-off, you are the one who has to decide.

    Bigger downpayment, less money in savings but a smaller monthly payment. That makes it easier on your budget.

    Smaller downpayment, opposite of above. Can you easily handle another couple of hundred dollars? If you are short, then you have more savings because of the small downpayment you can draw from.

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  • Scott
    Lv 7
    9 months ago

    A large down payment will reduce the amount of time you are upside down (owing more to bank than the car is worth) this is important if you want to sell/trade it in the next few years. It also reduces the overall amount borrowed and that will lower you monthly payment or the amount of months you have to pay.

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  • 9 months ago

    With interest rates on savings at an abysmal low, you would probably be better off paying more up front, assuming you can afford to without putting yourself in a financial bind.

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  • 9 months ago

    If you have $6,500 dollars, buy one for that amount. Save monthly payments until you can buy a newer, better car.

    • asia9 months agoReport

      I have $20k in savings. I don't want to deplete all of my saving by buying a cash car for $17000

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  • Anonymous
    9 months ago

    A large down payment lowers your overall interest. But its good to have 2-3 months payments set aside in case you lose your job or something.

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  • 9 months ago

    Find out how much you will be paying over-all. Likely, the shorter the loan, the less you pay.

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