As you figure out your loan amount and finance rates, you can begin to budget your new car. A bigger down payment will mean smaller monthly payments so plan to put down 20 percent if possible. It’s OK to go lower than that, but don’t drop farther than 10 percent.
Another way to reduce your monthly cost is to trade in a car. Be wary that whatever the dealership offers for your car, it will likely be much lower than the cars actual value. If you’re interested in getting the best value for your old car, you’re better off selling it privately, then using that money as a down payment on your new vehicle.
