How Much Down Payment for a Car with Bad Credit?

If you need a new set of wheels in Van Buren but have bad credit, you may wonder if your credit will impact the down payment amount. What’s the average down payment on a car with no credit? Everyone’s situation is different when buying a car with bad credit, but a large down payment is always favorable to help you get approved. Learn more about making a down payment with bad credit below. 

Average Down Payment On a Car with No Credit or Bad Credit

Every car shopper has a different financial situation, so it’s difficult to calculate an exact average down payment on a car with no credit. However, subprime lenders typically require a down payment of 10% on a car loan, though some are willing to accept as little as $1,000. 

The recommended down payment for a car is 20%. So, you’ll likely find that Arcadia drivers with bad credit put somewhere between 10% and 20% down on their car loans.

Buying a Car with Bad Credit But a Large Down Payment Is Best

Whether they have good or bad credit, McComb drivers are better off making a larger down payment because of how car financing works. Car loans accrue interest over time, so the larger your down payment is, the less interest you’ll pay.

Use Your Trade-In Car for a Larger Down Payment 

Making as large of a down payment as possible will increase your chances of car loan approval and decrease your total interest paid, but how can you come up with the extra money? Your old vehicle can help you boost your down payment when you trade it in! Value your trade to discover how much it’s worth. 

Spitzer Buick GMC Is Here to Help!

Whether buying a car with bad credit but a large down payment or hoping to get a loan with a smaller down payment, our finance team is here to help you. Contact us or stop by our dealership in Findlay to start a conversation and explore your options. With our help, you’ll be on your way to improving your credit with affordable loan payments!