Should I tell car salesman how much down payment? (2024)

Should I tell car salesman how much down payment?

Pretty much, you do. There may be some constraints, such as if you have a bad credit score. In that case, the bank may want a certain down payment. But usually, you tell the dealer how much you are willing to put down.

What not to say to car salesman?

How do you respond to the car salesman asks if you re making a down payment or financing?

Respond with the word cash or the word finance. Not all car salesmen are former politicians. Do not assume they are being sneaky until they do something sneaky. Answer that you want to select a car first then you'll consider dealer financing as well as other financial options which might include a cash sale.

Is $5000 enough for a down payment on a car?

For a $25,000 car, consider putting down at least $2,500 if it's used or at least $5,000 if it's new. By putting 10% or 20% down depending on the car's condition, you'll have the best options for loan terms and interest rates.

Why do car salesmen want a down payment?

Lenders often want you to make a down payment to show your commitment to paying back the loan and to get some compensation for the car upfront.

Is it smart to put 50% down on a car?

Not only does this show lenders how dedicated and serious you are to pay back the loan, investing some of your own cash into this purchase motivates success. You'll really see changes for the financial better in your car loan when you make a really large down payment, about 50%.

What tricks do car salesmen use?

Do car salesmen really talk to manager?

For decades now, car salespeople have constantly gone to “talk my manager” for permission to negotiate during the sales process.

How can you tell if a car salesman is lying?

“If a dealer writes in a different income number than you've given them, or misstates the amount of down payment you agreed to put down, leave immediately and find a new dealership,” says Steinway, the attorney. “Never sign your name to a contract where you know the information is wrong.

How do you explain down payment?

A down payment is an initial non-refundable payment that is paid upfront for purchasing a high-priced item – such as a car or a house – and the remaining payment is paid by obtaining a loan from a bank or financial institution.

What is the truth about down payments on a car?

Down payments reduce the amount money you must borrow, and thus the interest you pay while repaying your car loan. Experts recommend a down payment of at least 20 percent. Larger down payments may prevent becoming upside-down on your loan.

What is a good down payment on a 30k car?

A down payment between 10 to 20 percent of the vehicle price is the general recommendation.

What is considered a high car payment?

Financial experts recommend spending no more than 10% of your monthly take-home pay on your car payment and no more than 15% to 20% on total car costs such as gas, insurance and maintenance as well as the payment. If that leaves you feeling you can afford only a beat-up jalopy, don't despair.

How much should I spend on a car if I make $100000?

Why shouldn't you put a down payment on a car?

Making a large down payment on a car may also limit your financing or refinancing options. Some lenders may not offer financing if you propose to make a down payment that the lender deems too large. You might not meet a lender's financing requirements if you're seeking to put 90% down on a vehicle that costs $25,000.

Is $2000 a good down payment on a car?

In general, you should strive to make a down payment of at least 20% of a new car's purchase price. For used cars, try for at least 10% down. If you can't afford the recommended amount, put down as much as you can without draining your savings or emergency funds.

Is it bad to put a large down payment on a car?

The larger the down payment, the lower your monthly payment will be—and you'll probably get a better interest rate, to boot. The general rule is that your payment will drop about $20 a month for every $1,000 you put down, based on a 5% APR, but this is subject to individual situations and loan terms.

What are the disadvantages of a large down payment?

If you put a large chunk of it into your down payment, you may not have as much available in case of emergencies. You may also need to be more careful with your monthly budgeting. In some cases, this can be very inconvenient. The money cannot be invested elsewhere.

What is a good credit score to buy a car with no down payment?

Your credit score is crucial to determine your eligibility for a no down payment car loan. Most lenders require a FICO credit score of at least 680 before you can qualify. If your credit score falls below 680, improve your credit score before you apply to help you qualify in the future.

What is a good down payment for a 20k car?

A rule of thumb for down payments on new car loans is 20% of the purchase price, which helps you avoid owing more on the loan than the car is worth. It's best to put as little money down as possible when leasing a car.

How much can you talk a dealer down on a new car?

The main difference will be how much you can negotiate off the retail price: New cars. It is considered reasonable to start by asking for 5% off the invoice price of a new car and negotiate from there. Depending on how the negotiation goes, you should end up paying between the invoice price and the sticker price.

How do you beat a car salesman at his own game?

What do most car salesman make on commission?

They generally earn through commission rates which depending on the dealership company, can range between 20% to 40%. So how much money do car salesmen make per car? If you sell about 10 cars in a month and on average you make about $40k per year, you will be earning $330 per car. But, that's just a rough estimate.

Are car salesman untrustworthy?

Car sellers are among the least-trusted of all professionals, just slightly ahead of members of Congress. A recent Gallup survey showed that 91% of people have zero trust in the car buying process.

Can I go to a car dealership and just look around?

Of course! You can look at as many cars you wish, ask questions, ask prices, go for a test drive.