How Much Down Payment for a Car with Bad Credit?

Car loan papers

Are you in the market for a new vehicle, but your credit score is less than ideal? While securing a car loan may be a bit more of a challenge, it’s not impossible! When you consistently make your car payments on time, you will notice that your credit score will get a boost. This can help you when you try to take out other loans in the future. If your credit score is not quite where you want it to be, you may be wondering about the amount you should set aside for a down payment on your new vehicle. Jennings Volkswagen has some helpful tips for Chicago area drivers.

The Average Down Payment on a Car with No Credit

Most subprime lenders – banks and other institutions that give loans to people with bad credit or no credit – usually require a down payment of 10% on a loan, or $1,000, whichever is greater. This is the minimum you can expect to pay for the vehicle of your choice.

If it is possible, try to make a bigger down payment. When you do, you’ll benefit from lower monthly payments as well as end up paying less in interest over the course of the loan. So if you’re asking how much down payment for a car with bad credit, the best answer is “as much as possible.”

Value Your Trade to Cover Your Down Payment with Bad Credit

We understand that for drivers on a tight budget, that $1,000 down payment can seem pretty steep. However, one way to cover some of that cost is by trading in your current vehicle. At Jennings Volkswagen, our trade-in allowances can be put toward your new down payment, making buying a car with bad credit but large down payment much less of a financial strain!

Expect Hassle-Free Financing at Jennings Volkswagen

At Jennings Volkswagen, we’re happy to help our customers in the Northbrook area secure a bad credit car loan. If you have any questions about the financing process, do not hesitate to reach out to our team.

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