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Auto Loan Down Payments for Used Cars



Here’s some simple numbers to think about: $1,000, 10%, and 20%. What do all these numbers have in common? These are the most often recommended amounts to use when it comes to a car loan down payment. But how do you know what’s the right amount for you to pay for a used car?

Minimum Auto Loan Down Payment Requirements

Auto Loan Down Payments for Used CarsMany people ask us what the minimum amount needed for an auto loan down payment for a used car is. The truth is that there’s no one solid answer when it comes to down payments. However, when you’re talking about bad credit car loans, there’s a minimum amount that lenders typically ask for – at least $1,000 or 10% of a vehicle’s selling price.

If you’re dealing with poor credit, there’s no getting around the down payment requirement. Though the minimum amount varies by lender and car selection, you have to meet the requirement if you hope to get the auto loan you need.

Even though there’s a specific amount you’re required to pay, putting down a larger amount can save you money in the long run. In fact, the larger the down payment you make, the more money you could save overall.

Additionally, making a larger than required down payment is a good way to make the most of your car loan. A big down payment can do a lot more than save you money. It can change the loan terms you may qualify for or even help you qualify for a different type of vehicle.

Let’s take a look at how different down payment amounts could affect your loan in the future.

Choosing Your Down Payment Amount

Imagine you’re purchasing a used car which costs $6,000 and taking out a 48-month loan. Since people with poor credit often qualify for higher interest rates, let’s say you’re looking at 12% interest, and are asked to make a down payment of 10% of the vehicle’s selling price (for example purposes, we’re calculating without tax, title, or license fees, your actual costs will vary).

  • Negotiated selling price: $6,000
  • Interest rate: 12%
  • Loan term: 48 months
  • Down payment: $600

In this example, your total loan amount at the end of 48 months is $6,826 and you’ve paid $1,426 in interest while making a $142.20 payment each month. However, if you raise the down payment amount, you lower the overall amount you need to finance, which lowers how much you pay.

Now look at the same scenario using a down payment of $1,000:

With this down payment, you’re looking at a total loan amount of $6,320 and only paying $1,320 in interest charges while your payment drops to $131.67 a month. As you can see, the more you use as a down payment the more you can save.

These examples show impact on a used car loan. The greater the cost of a vehicle, the more potential you have to save by making a larger down payment.

Additional Benefits of a Down Payment

So, if you’re looking at these numbers and thinking, “pfft, that’s not a huge savings, only a few hundred bucks,” you’re right. In this scenario, you’re only seeing a few hundred dollars saved, but that can go a long way, especially in rocky economic times. Other benefits you’re likely to see from a down payment impact your auto loan itself, not only how much you pay for it.

A large enough down payment can help you qualify for a shorter loan term. Sometimes, people with poor credit are signed up for longer term loans to bring a monthly payment into a more manageable range.

Everyone wants a low car payment, but don’t forget that interest plays a huge part in an auto loan and the longer you’re paying for it, the more money someone makes off you. If you don’t play your cards right, you could end up paying more for a vehicle than it’s worth when you stretch a loan term too far.

Additionally, a big down payment can help you qualify for a better car than you thought possible. Not only can a down payment impact how much or how long you’re paying, it can influence what kind of vehicle you can drive, too. The more skin you put in the game, the more choices may open up for you when it comes to an auto loan.

Speaking of interest, a large enough down payment may even allow you to qualify for a lower interest rate. This is rare, but if you’re putting enough down on a car, you may be able to negotiate for a lower interest rate.

Ready to Get Started?

Now that you know the ins and outs of making a down payment on a used car, you can start searching for the vehicle you need and a lender that can get you into it. You don’t have to search far or wide when you have us on your side, though!

At Auto Credit Express, we’re teamed up with a nationwide network of special finance dealerships that have lenders equipped to work with many types of credit situations. We want to connect you to a special finance dealer. To get started now, fill out our free car loan request form!

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Letter: Vote for Kiesha Preston | Letters



The residents of Roanoke, Virginia, need to get out of the box of voting based on party affiliation. It’s time to vote for the best candidate to do the job.

Kiesha Preston is running as an independent and is the best choice for Roanoke City Council. When she was only three years old, she was troubled because a local Kroger store removed the kiddie carts. She asked me how to get them back so she could shop beside me. I told her to go to the manager and she did. She stated her case, and a few weeks later those kiddie carts were back in the store.

Kiesha also has presented a bill to Congress that was approved. The Virginia Domestic Violence Victims Protection Act prevents domestic violence victims from not being able to rent an apartment because of bad credit as a result of their abuser ruining their credit.

These are but two examples of Kiesha’s tenacity and getting results. We need people on council who have no agenda and are truly willing to work for the least of us.

Kiesha is not intimidated by those in power and will hold her own to help those who cannot help themselves. This is why she is the right person to get the job done.

Please do not be discouraged because you are tired of the same old same old where parties are concerned. You have another choice so please vote for Kiesha Preston. She has been working tirelessly on behalf of the people without being elected to an official office. Just imagine what she can do once she is officially on City Council.

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This One Credit Card Will Get You the Most Cash Back Right Now



Let’s admit it, choosing the right credit card can be a stressful process. There are so many variables to consider—from annuals fees to credit score requirement—not to mention the various rewards and benefits each card offers, and how those align with your lifestyle and spending habits. Then there are those hidden fees and interest rates you have to reckon with. In other words, it takes a lot of work to make a truly informed decision when it comes to choosing a credit card that’s right for you. Perhaps a good cash back program is high on your credit card priority list because, well, who doesn’t like some extra money in their pocket?

To help you decide on the credit card that is going to get you the most cash back, the experts at personal finance site WalletHub compared more than 1,500 current credit card offers. From that large pool, they narrowed down the field to the cards that offer cash back rewards, comparing those offers based on initial bonuses, rewards earnings rates, annual fees, and more. From that analysis, here are the best credit cards that will get you the most cash back right now. And for more money matters, check out This Is the State Where Your Money Is Worth the Least.


Alliant Cashback Visa Signature Credit Card

Best for: Cash back on all purchases

Cash-back rate: 2.5 percent

Annual fee: $0.00 for the first year; $99.00 after that

What kind of credit you need to get one: Excellent

Learn more about the Alliant Cashback Visa Signature credit card here.

If you are worried about having buyer’s remorse after choosing a credit card, put that into perspective by checking out What You’re More Likely to Regret Than Anything Else You Do.


Discover It

Best for: People with bad credit

Cash-back rate: 1-2 percent

Annual fee: $0.00

What kind of credit you need to get one: Bad

Learn more about the Discover It credit card here.


U.S. Bank Cash+ Visa Signature Card

Best for: Cash bonus for good credit ($200.00)

Cash-back rate: 1-5 percent

Annual fee: $0.00

What kind of credit you need to get one: Good

Learn more about the U.S. Bank Cash+ Visa Signature Card here.

And to make sure you have money to pay off those monthly bills, avoid The Biggest Career Mistake You’ll Ever Make, According to Experts.


Chase Freedom Unlimited

Best for: No APR on purchases

Cash-back rate: 1.5-5 percent

Annual fee: $0.00

What kind of credit you need to get one: Good

Learn more about the Chase Freedom Unlimited credit card here.

And for more things that will help you and your family stay on the right financial track, check out The No. 1 Sign You Shouldn’t Buy That House, According to Realtors.


Capital One QuicksilverOne Cash Rewards Credit Card

Best for: People with limited-to-fair credit and looking for low annual fee

Cash-back rate: 1.5 percent

Annual fee: $39.00

What kind of credit you need to get one: Fair

Learn more about Capital One QuicksilverOne Cash Rewards Credit Card here.


Citi Double Cash Card—18 month BT offer

Best for: Flat-rate rewards

Cash-back rate: 2 percent

Annual fee: $0.00

What kind of credit you need to get one: Excellent

Learn more about the Citi Double Cash Card here.


Capital One Savor Cash Rewards Credit Card

Best for: Dining and entertainment

Cash-back rate: 1-4 percent

Annual fee: $95.00

What kind of credit you need to get one: Good

Learn more about the Capital One Savor Cash Rewards Credit Card here.


Blue Cash Preferred Card from American Express

Best for: Most cash back overall

Cash-back rate: 1-6 percent

Annual fee: $0.00 for the first year; $95.00 after that

What kind of credit you need to get one: Good

Learn more about Blue Cash Preferred Card from American Express here.

And for more helpful information delivered to your inbox, sign up for our daily newsletter.

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Possible Raises Series B and Moves Fully Remote | State



SEATLLE, Oct. 20, 2020 /PRNewswire/ — Possible raises $11 million in new equity funding to expand the team and to provide additional products for its customers. Union Square Ventures led the round, with participation from existing investors Canvas Ventures, Unlock Venture Partners, Columbia Pacific Advisors, Union Bay Partners, Tom Williams, and FJ Labs. The company has also secured $80 million in new debt financing from Park Cities Advisors.

Furthermore, the company is now fully remote and recently onboarded software engineers from across the US and the globe. Possible is committed to distributed work and actively recruiting for a number of other remote roles.

Possible provides friendly access to capital and a simple way to build credit for people who otherwise would get a payday loan or get hit with a bank overdraft fee. The company uses real-time financial data, rather than a credit score, to qualify customers and provide funds instantly through its iTunes and Android apps. Unlike payday loans or overdraft fees, Possible loans are paid back in small installments over multiple pay periods to allow customers to catch their breath. By reporting on-time payments to the credit bureaus, Possible enables its customers to build credit history and eventually qualify for cheaper, longer term financial products. On average, customers with low credit scores see their scores increase by 70 points within 4 months.

Tony Huang, Possible’s CEO explains, “So many people who live paycheck to paycheck can’t afford to build credit history. We’re helping them do it for the first time while providing them with a friendlier and more affordable small-dollar loan.”

Since launching in June 2018, Possible’s given out loans to hundreds of thousands of customers, helping meet short-term cash needs while building credit history or establishing credit for the first time. These customers, often with bad credit or no credit history, are underserved by traditional banks. Possible fills that gap and provides financial access to those who need it most while giving them the means to climb their way out.

Gillian Munson, Partner at Union Square Ventures, explains the thesis behind their new investment, “Through tech innovation, data-driven insights, and a focus on the customer, Possible is well on its way to winning the hearts and minds of both consumers and regulators alike, and building a trusted brand that endures.”

A 2019 Experian study shows 34.8% of consumers are subprime and can’t access money when they need it. They pay $106 billion in punitive fees each year to the existing financial system for short-term credit products. These consumers are trapped in predatory debt cycles of payday loans and overdraft fees without the means to rebuild their credit or improve their financial health. While there has been a number of new tech-enabled products in this space, most lead to similar debt cycles and don’t address the harder issue of improving long-term financial health. That’s where Possible comes in.

Since the company is now fully remote, Possible is actively hiring talent across the globe. Tyler, Possible’s CTO, explains, “Being fully distributed allows us to access the talent pool of the entire world. Our success so far is a reflection of the quality of our people, and we believe hiring globally will allow us to find exceptional people to join us in achieving our mission.”

About Possible

Possible is a fintech company based in Seattle, Washington. The company provides a friendlier and easier way for customers to access capital while also building credit history and improving long-term financial health.

About Union Square Ventures

Union Square Ventures is a thesis-driven venture capital firm based in New York City. USV manages over $1 billion in capital across seven funds and focuses investments in portfolio companies with the potential to transform important markets.

About Park Cities Advisors LLC

Park Cities Advisors LLC (“PCA”) is a privately held, SEC-registered alternative credit manager based in Dallas, Texas. PCA is focused on private lending across the specialty finance and FinTech sectors and provides debt capital to companies across a variety of industries through asset-based financing transactions.

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