Car Down Payment Calculator

Use Bankrate’s auto down payment calculator to estimate how much money you can save in interest, as well as what your monthly loan payment will be, based on the amount of money you bring to the table.

How much should you put down on a car?

A down payment between 10 and 20 percent of the vehicle price is the general recommendation, although you can put down more. One reason to make a down payment is to reduce the amount you must borrow. By reducing the amount financed, you save some even before you start negotiating the car price.

For drivers with poor credit, a down payment can be instrumental in gaining approval and receiving competitive rates. It's an excellent way to show potential lenders your commitment to the purchase and paying the loan off. If you still can't get a great rate with a down payment, you may be able to refinance your auto loan later for a better rate.

In either case, be careful while shopping and consider the differences between a new and used vehicle when determining how much money to put down. By making sure the vehicle fits, and not just the payment, you will save in the long run.

Down payment on a new car

New cars depreciate at a much faster rate than used cars. A high down payment of 20 percent or more can help protect you from that loss of value by making sure you have more equity in the car than what you owe. However, just because you can pay more cash upfront doesn't mean you should sign off on a vehicle that you cannot truly afford. Make sure your monthly payments, insurance and fuel costs are within your monthly budget.

Down payment on a used car

Because buying a used car generally costs less, you won't need to put as much down. Because the value of a used vehicle has already undergone most of its depreciation, your down payment should be a minimum of 10 percent. However, just as with a new car, the higher the down payment is, the more you will save on accumulated interest.

Down payment on a leased car

A large down payment can be helpful when buying a car, but this approach is typically a bad idea when leasing a vehicle. The main advantage of leasing is the lower upfront costs, and a large down payment defeats this benefit. If something happens to your leased car, your insurance will reimburse the leasing company rather than you, and you won’t get a refund for your down payment.

What else should you consider when borrowing a car loan?

Bottom line

A down payment is crucial when you're looking to buy a new or used car. If you don't currently need a vehicle, consider building your savings and waiting for a seasonal auto sale. 

If you're ready to buy, start researching competitive auto loan rates and creating a budget with a 10 to 20 percent down payment in mind so you're ready when it's time to finalize your purchase.