How much down payment required for a car loan with a bad credit?

A down payment of 10-20% on the total value of the purchasing vehicle is enough to qualify customers for a car loan.

Despite whether your credit score is good or bad, putting a down payment increases your chance for a car loan.  A down payment decreases interest rate, lowers monthly payment, and reduces the risk on affecting credit score negatively. Most credit vendors expect you to have a down payment of 10-20% on the value of the car. There are a few factors that affect the amount of down payment required such as the overall condition of the purchasing vehicle, trade in value of existing vehicle, and the amount savings in your bank account. If you are unable to provide enough down payment, there are other ways getting a loan such as purchasing additional features on auto insurance, buying a less expensive vehicle, or getting a co-signer to help you qualify for a loan.

Be the first to try the app

Sign-up and get exclusive access to try the app when we launch. It’s time to control your finance.

About us

Control all aspects of your finances. Learn about what you need to know to make smart decisions. But most of all, have trust that we’re here to help. In the end, you’ll have more time to do what you love.
Chango - Unifying your financial world. | © 2018 Chango Card Inc.

Rethinking personal finance

Subscribe to be part of the next wave in finance

Ready for something awesome?