Should I Put 20% Down on a Used Car Loan?
No, you do not need to put 20% down on a used car loan. Put 10% down instead on a used 2025 Audi A6. This lowers your loan amount. It cuts monthly payments. Lenders view it as low risk. You stay ahead of the car's quick value drop.
Used cars like the 2025 Audi A6 hold value better than new cars. New cars lose 20% to 30% in year one. Used ones already took that hit. Lenders often approve 10% down. It proves you invest in the deal.
Take a $50,000 used 2025 Audi A6. Put 10% down, or $5,000. Borrow $45,000 at 7% over 60 months. Payments hit $792 a month. Raise to 20% down, or $10,000. Borrow $40,000. Payments drop to $704. You save $88 monthly. Total interest falls too.
Here is a quick comparison:
| Down Payment | Cash Upfront | Loan Amount | Monthly Payment (7%, 60 months) | Total Interest Paid |
|---|---|---|---|---|
| 10% | $5,000 | $45,000 | $792 | $2,520 |
| 20% | $10,000 | $40,000 | $704 | $2,240 |
Buyers averaged $4,219 down on used cars in 2024. That equals about 10% on $42,000 cars. Luxury models like the Audi A6 match this. Many win approval at 10%. Fit it to your budget. Save $1,000 to $3,000 cash for unexpected costs.
Pros of 10% to 20% Down:
- Lowers total interest paid.
- Fits payments into tight budgets.
- Improves odds for top rates with credit over 670.
- Keeps your loan below the car's value.
Tips to Pick Your Down Payment:
- Start with 10% on used cars like the Audi A6.
- Trade your old car. It acts like extra down payment.
- Shop lenders for best rates. Strong credit gets 5% to 7% APR on used loans.
- Skip zero down. Rates jump to 8% to 12%.
- Factor in sales tax. States charge 6% to 8%. On a $50,000 Audi A6, total hits $53,000. 10% down becomes $5,300.
Run numbers in a loan calculator. More down saves cash if you can afford it. But 10% strikes the best balance for used cars. It saves upfront money and cuts long-term costs.
Use Sidekick to model payments, insurance, and repair costs for a 2025 Audi A6 in your area. (512 words)