How Much Down Payment for a Car with Bad Credit?

financial paperwork

Ready to buy a used car, truck, or SUV in Sacramento but are curious about how much of a down payment you need? If you have bad credit, you may be worried about stretching your budget to make your auto loan work, but thankfully, you do have options. The finance experts at Kareem Auto Sales Inc near Elk Grove are here to guide you through the down payment process with these car buying tips.

The Average Down Payment on a Car with No Credit

While there may be slight differences between lenders, the minimum car down payment for bad credit is often 10% of the loan or $1,000, whichever is greater. However, if you can afford to put down more upfront, you could secure a lower interest rate on your loan, which will help you save significantly in the long run. It’s important not to overextend yourself, but if your budget allows, making a down payment as large as possible will be more beneficial for the duration of your loan term.

Value Your Trade, Meet Your Down Payment with Bad Credit

One way to offset your purchase and down payment total is to trade in your existing vehicle. Helpful dealers like Kareem Auto Sales Inc can apply the value of your old vehicle towards your new one, lowering your overall purchase price and therefore the down payment. Using a value your trade calculator gives you a sense of what your car is worth, and how that will impact your upcoming monthly payment. Every little bit counts!  While taking on a new loan with bad credit may seem stressful, remember that making steady payments to lenders actually helps improve your credit score over time. Proving that you are a responsible borrower raises your score, so be sure you are taking on a reasonable amount.

Kareem Auto Sales Inc Can Help Buyers with Bad Credit or No Credit

At Kareem Auto Sales Inc, we want you to enjoy the car shopping experience, and find a vehicle that fits your needs and budget in Roseville. If you have bad credit or no credit, our friendly finance team will work with you to find terms that benefit you in the long run. Make the trip from Folsom and visit us today!

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