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Putting a down payment on a used vehicle | OK Carz

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How much should your down payment be on a used car?

Buying a vehicle is one of the biggest purchases that many drivers will make. Even with a used vehicle, it is likely that you’ll end up spending quite a bit of money to get the vehicle that you truly want. The high cost of vehicles means that most people will need to finance at least part of their purchase, instead of paying for the entire thing up front. However, financing the entire cost of your vehicle, even when it is used, is generally not possible. This is why you’ll need a down payment for your purchase.

When you use a down payment, you’re paying up front for a small percentage of the vehicle that you’ll be paying off during the time frame of the loan. This lowers the amount of money you’ll need to borrow to complete the purchase. In turn, this lowers your monthly payment and the time frame for your loan repayment. The less money you take out for your loan and the less time you take to pay it back will lower the amount that you’ll end up spending on interest.

[Related: Should you buy your car with cash?]

Why do you need a down payment when buying a used car?

Those who are financing a vehicle will likely need to provide a 10-20% down payment on their vehicle, which can protect you against depreciation. With depreciation, your vehicle usually loses about 20% of its value every year, and with that down payment, you won’t end up owing more on your vehicle than it is worth. While 20% is the suggested down payment amount, there is nothing stopping you from paying more, which could be beneficial for you in the end.

Drivers in Florida who are looking for information on financing for a used car should visit OkCarz, or go online for more information on how to get vehicle financing. When you’re on the OkCarz website, you can view the inventory of used vehicles, and even apply for pre-approval, so that when you go in to buy a used vehicle, you’ll know exactly what you’re looking for.

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Putting a down payment on a used vehicle | OK Carz

How much should your down payment be on a used car?

Why do you need a down payment when buying a used car?

More from OkCarz

What is the Debt Avalanche Method?

What is the Debt Snowball Method?

Tips for Improving Your Current Budget

Tips for College Students Shopping for a Used Vehicle

Contact Information

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