How much should I put down on a new or used vehicle?
Most experts recommend a down payment between 10% and 20%, depending on whether the vehicle is new or used. Larger down payments reduce the loan amount and monthly payment. Trade-in value can also contribute to your down payment. Your finance team can help compare different scenarios.
Quick Summary
Experts suggest 10–20% down; larger payments reduce loan and monthly cost.
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Answered by Annie Brockway
Last updated 4/13/2026, 5:56:22 PM
There’s no hard rule, but many experts suggest putting 10–20% down. Equifax notes that down payments around 10% are common for used cars, while new cars often require closer to 20%. A larger down payment reduces the amount financed and may lower your monthly payment and total interest.
If you have a trade-in, its value can count toward your down payment. Our finance specialists will help you run numbers with different down-payment scenarios.
- General guideline: 10–20% of the vehicle’s price
- Benefits: More equity, lower monthly payment and potentially better rates
- Trade-in credit: Can substitute or supplement cash down
General Sales Manager, El Cajon Mitsubishi
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