In normal fashion, we’re going to take some time to address the question of a loyal reader, “What is the typical down payment required on a car loan, for people with bad credit?”
This question depends on a few factors.
If your credit is really bad, say 550 or worse, you will probably end up putting down a deposit of 30-40%. In these instances, you usually won’t be able to get a loan from a bank. People with credit in this range can generally still get approved for financing from dealerships that specialize in this type of loan.
To qualify for a car loan with bad credit, from a bank, you will probably still have to have a credit score of at least 620. If your credit is in this range, the bank may require a down payment. This will be calculated by looking at the value of the car against its price. Typical ranges for down payments are from 10-20% for people in this credit range. However, if you get a particularly good deal, the bank may not require a down payment.
People that have credit scores that are above 650 will generally be able to see a typical down payment of 0%, as long as they are employed and don’t have recent issues on their credit report.