Pondering how much to put down?

Many people may believe that a typical down payment for a car is 20%... but, that is a very high number in today’s world. And while there isn’t really a universally recommended amount for a down payment on a car, it is almost always a good idea to put a down payment on the car you are buying, if you can afford to do so. In fact, depending on your credit situation, many lenders and/or dealers may require it. That said, it turns out that people are dedicating less and less money to their down payment – which can cost you in the long run.

The main reason people provide less for a down payment is to reduce their out-of-pocket costs. It’s true that, psychologically, $2,000 “up front” feels like significantly more money than that $2,000 being broken up, and spread across the next 48, 60, or even 72 months. But, with interest, that $2,000 dollars could cost you a lot more over the life of the loan.