"My gross monthly income is around $3,000, I have $1,000 saved for a down payment, and my credit score is sitting at 680. Will my down payment be enough, or will I need to save more to be able to afford a $12,000 car?
"
Reviewed by Shannon Martin, Licensed Insurance Agent.
“A typical down payment is usually between 10% and 20% of the total price. On a $12,000 car loan, that would be between $1,200 and $2,400.
When it comes to the down payment, the more you put down, the better off you will be in the long run because this reduces the amount you will pay for the car in the end. Also, don’t forget to factor in the tax, title, and dealer fees, as you will have to pay for those as well.
Ultimately, your down payment will be determined by whatever deal you work out with the dealer and the lender, but you are probably going to need around $5,000 for the down payment and other costs.“
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