how much money should i put down on car?
241760
The rule of thumb commonly cited is to put down at least 20 percent of the purchase price on your next car. If you want to and can afford to put down more, it will help to lower your interest payments and monthly payments. Unfortunately, most people aren't able to accomplish this goal.
953782
Generally, banks and financial institutions will recommend you have a deposit of at least 20% of your prospective property's purchase price. So, if we go back to our $400,000 home, you'd want to provide $80,000.
116064
Here's a final rule of thumb: at least 20% of your income should go towards savings. More is fine; less is not advised. At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items.
1147415
The down payment: 3% to 20% of the purchase price The down payment will take up the bulk of what you save because it's still generally recommended that you put down 20% of a home's purchase price.
10429
If the vehicle is new, ideally you should wait until at least year three of ownership to trade it in when depreciation normally slows down. If it's used, it already went through the big drop in depreciation and you can usually trade it in after a year or so.
140947
Depreciation is the difference between a car's value when you buy it and when you come to sell it. This drop in value varies between makes and models but typically is between 15-35% in the first year and up to 50% or more over three years.
1298686
As a general rule, you should be prepared to pay at least 20% of the vehicle's sticker price upfront. For a $30,000 vehicle, this means you should have at least $6,000 saved and ready to spend. For a less expensive vehicle, say a $10,000 one, you should still have at least $2,000 ready to spend.
705523
By year 5, 40%. As you can see, this process is nonlinear. In the first two years, most cars lose about 30-40% of their value – but the decrease over the next 3 years is only about 20%.
229729
The general rule of thumb is that you should not spend more than 20% of your monthly take-home pay on cars, according to Edmunds.com (via Bankrate). So if your after-tax monthly income is $4,000, your total cost of car ownership for ALL of the cars you own should not exceed $800 under this rule.
1349545
As a broad rule and depending on where you live, tax, license, assorted fees and other costs will add roughly 10 percent to the purchase price. This makes the price of a $30,000 car actually about $33,000 and, if you're financing the deal, you will be paying interest on that additional amount.
1443402
Here's how the program works: Low-interest car loans in amounts of up to $8,000 are available for the purchase of a pre-owned car, or up to $1,000 to repair a vehicle you already own.
345283
['Buying a car should start with a budget. ... ', "If you're financing your purchase, the rule of thumb, according to money and car experts alike, is the 20/4/10 ratio. ... ", 'If you put any less down, you could be paying more than what the car is worth by the end of the year, it is also known as negative equity.']
979819
If the vehicle is expected to hold its value well, then you're probably better off purchasing the vehicle or financing it. If the value is likely to fall more quickly (and you plan to change to a new car after your repayment period), then you might be better off leasing to avoid the depreciation risk.
1159750
The frugal rule: 10% of income For many people, I think that will be between 10–15% of your income. So if you earn $25,000 a year, that's going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that's a used car for around $10,000 or $12,000.
306545
A healthy down payment If you have at least a 10 percent down payment saved outside of your savings and emergency fund totals, you are ready to buy a house. If you want to put even more down like 15 percent or 20 percent, then it's even better because you can avoid the PMI (private mortgage insurance) requirement.
1427394
"It's the single worst financial decision millennials will ever make." That's because the moment you drive it off the lot, the vehicle starts to depreciate: Your car's value typically decreases 20 to 30 percent by the end of the first year and, in five years, it can lose 60 percent or more of its initial value.
1102381
If you buy a new car: 1) You'll lose around 40% in your first year. In other words, if your car cost, say, $100,000 when you bought it, one year later it's probably worth $60,000. It varies from vehicle to vehicle and depends on market conditions, mileage and the like.