What was everyone's downpayment amount when they bought their TL's?? I'm fixing to buy one soon and was wondering if 5k was enough or should i aim for 10k?? Any input would be much appreciated.

 

I should think $5,000 would be fine as far as the dealer goes. Of course, $10,000 if what you're looking to do is lower your monthly payment.

 

Depending on your credit score, it should be okay....ofcourse, the more the merrier....this is how I think...for every $1K-down, knock $20 off your monthly payment...

 

If you can spare the change, go for the $10K. Whatever will knock down your monthly payments, I'd go for that. And I had put down $5K for mine.

 

I put down $11k roughly when I bought mine and I took out a $25K loan.

 

20% down or close to it is good. This helps cover depreciation. If you can do more than 20% then do it.

 

The Stealership told me when I bought my Accord that they like to see at least 10% down...

 

Dont think of it as a requirement for downpayment. Think of it as, how much you wish/need to borrow and what you can afford to pay monthly. The less you need to borrow the better.

 

I would do a minimum of 20 percent. This protects you in case the car is stolen, totaled, etc. Also, it makes it extremely unlikely that you will be upside down if you decide to trade the car in before you pay off the loan.

 

damn i was expecting to put down like 25k and taking out a small loan

 

It all comes down to where your money is going to work best for ya...

- If your finance/annual interest rate is less than what you could get from a return on an investment (stocks, bonds etc.) you may think otherwise.
- If you think you may want to keep that $10 or $25K around for emergency funds IE have one-three months pay "liquid", you may think otherwise.

Putting a lot down on a car isn't always the best plan. Sure it lowers your monthly payment and that is a factor for many. Being upside down on a car loan also isn't an issue if you have that $5-$20K sitting in a safe liquid investment. If you're worried about having a wreck and the car being totaled and not worth the payoff,,,, spend the $200-300 for GAP insurance.

Overall, think about all of your current and future "possible" needs for that money as well as other possible "better" ways to utilize it.

Cheers

 

i put 10k down and financed 25000 for 24 months

 

I never give a down payment for a car. I have much better places to put that money than give it to the dealer. I don't think it saves enough off the monthly payment to make much difference. I buy gap insurance for $250 in case of accident or something and use the money for other things. You can use it to mod your car, buy a new computer, take a vacation, put in savings, whatever. It has worked well for me so far, but everybody is different. Do what you think is best for your situation.

 

Down payment? What's that?

I either did $0 or $1000, I cant remember, bought two cars, one was 0, other was 1000 just for kicks.

As mentioned above, Since it only lowers your payment like $20 month per $1000, I'd rather keep $10,000 cash and pay out the $100 per month more.

Everybody has that range where they say "I can't pay $xxxhundred for a car"... (i.e. $600 or $500) so they put a BIG down payment and say "I only pay $xxxhundred" (i.e. $400 or $500) and it makes them feel better. In a sense, its an accomplishment b/c you saved the money for the down, but its kinda just moving it from one place to another, the car costs what it costs.

The interest savings from putting a big down payment is marginal because you really have to subtract inflation from the interest rate....and then thats the premium you really pay to borrow the money.

So I financed at 4.75% over 72 months, and inflation is about 4% (or higher here in SoCal) so its not a bad deal to finance it. If the rate were much higher then it would be a whole different equation. Now, I believe rates are 7% and above so its a little more costly to finance.

 

I may get that gap insurance. good idea.

 

Depends on your credit how much you'll have to put down. I put all of it down when I got mine. I'd put the most down as you can, and get the shortest term you can. Why pay interest if you don't have to.

 

My down payment was $35,000 and that was fine.

 

$6300

 

I put down 10K when I bought my TL last april. And to further offset the depreciation factor, you should pay a bit more each month that what you agreed to on paper. Paying more in most cases should help to decrease the total interest that you will be paying on the car. Although I financed for 5 years, I should have the car paid off in 4years give or take a month.

Last but not least, putting a significant amount down on any car should shield you from being possibly financially upside-down if you decide at a later date to trade/sell the car but have not managed to pay it off yet.

 

The more you can put down, the less to finance, the smaller the monthly payment is. The quicker you pay it off, and less interest you piss away to the finance people.

 

Gap insurance is a good idea. I've had it, and a friend of mine has had to use it. Saved him big bucks!

I'm aiming for 10g's down when I get my TL.

 

You said bought, so I assume you mean buy and NOT lease. But, any amount is good - the more the the better.

Like somebody else said, put $1,000 down and estimate $20 off your monthly bill.

 

I put down 12k and my montly payments are pretty cheap.

 

i put down $12k. i just didn't want a high monthly. besides, i'll probably spend most of that money on unnecessary impulse buys. so i might as well put it on the car i know i'll have for a while, enjoy, and need

 

Another consideration is are you a long term owner or a guy who likes to trade in a year or two. Your current and future financial situation is also a factor, is your income going to increase rapidly?

If you already don't own a house, do you plan to buy one soon? If yes, having the cash in the bank will put you in a better postition for mortgage rates. Putting down 20% on a house will also allow you eliminate mortgage insurance.

peter