A down payment is a powerful tool in getting a car loan.  The question is, for many people, how much money to put down as a down payment?  The conventional wisdom, according to Edmunds.com, is that a down payment should be 20%.  The problem with that number is how many people struggle with circumstances today that make them unable to have that much for a car at the time of purchase.  How does that effect the number people need for a down payment?

Down payments have been steadily decreasing from that 20% number.  The reasoning is because car prices are increasing, but the wages the average buyer is making has stayed the same. The average family has less money to use for something like a down payment.  So they don’t have the extra income to spare, hence the decrease in the amount.

That still doesn’t answer an underlying question: how much should you put as a down payment?  The answer, sadly, has no number, instead it deals in one general thought process.  It is up to you to figure out how much money for a down payment is available to you.  How much have you saved?  How much can you comfortably pay up front?  These are some of the important questions to ask if you want the answer to how much cash should you put as a down payment.

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