How Much Down Payment for a Car with Bad Credit?

car loan paperwork

We’ve all been there. Everybody hits a rough financial patch every now and then. Sometimes that means you get a little behind on your bills, and that may affect your credit for some time. Or maybe you just haven’t had a chance to establish credit yet. The problem is you need a car now. We’ve helped lots of Newnan residents in exactly those situations to get behind the wheel of their next car.

The friendly finance team at Scott Evans Nissan will be happy to help you with all of your questions, including: How much down payment is needed for a car with bad credit? Does it make a difference when you’re buying a car with bad credit but a large down payment? What’s the average down payment on a car with no credit? Read on to learn more!

How Much of a Down Payment is Required for a Car with Bad Credit?

Auto loans to customers with bad or no credit are called “sub-prime” loans. Lenders in the Douglasville area typically require 10% of the purchase price of the vehicle, or $1,000, whichever is higher. You may be wondering if it makes a difference if you’re buying a car with bad credit, but put down a large down payment. There are benefits to doing that, but, when it comes to your credit rating, it’s not that simple.

Buying a Car with Bad Credit but a Large Down Payment

Don’t get us wrong. There are several good reasons to put down a large down payment: smaller loan, lower payments, and a smaller chance that the car will depreciate faster than you can pay it off. But a larger down payment will not offset your credit rating. The lender will still have to determine whether you can afford the monthly payments. But what if you haven’t had a chance to establish credit? What’s the average down payment on a car with no credit?

Average Down Payment on a Car with No Credit

Just like customers with bad credit, customers with no credit should still expect to put down at least 10% or $1,000, whichever is higher. The good news is that paying off on auto loan is a good way to establish credit.

Let Our Friendly Finance Managers Help

The experts at our Finance Center will be happy to walk you through all of your finance options, regardless of your credit score. You can even apply for financing online without visiting the dealership. Or you might consider leasing one of our vehicles if you don’t want to commit to a model long-term We’re just a short drive away from Villa Rica, so drop by or contact us today! We’ll be glad to answer financing questions, as well as questions about how to measure tire tread depth.

Scott Evans Nissan 33.5880212, -85.0529572.