How Much Downpayment for a Car with Bad Credit?

salesman passing over new car key

Do you have bad credit but need a car near Farragut? Don’t worry, buying a car with bad credit but with a large down payment is entirely possible. Thankfully, doing so can actually improve your position, as making regular payments on a car loan on time will improve your credit score, making it easier to secure lower interest rates on other loans. Learn more about how much downpayment you need for a car with bad credit to expect from the finance team here at Ole Ben Franklin Motors. If you have any questions, don’t hesitate to contact us.

The Average Down Payment on a Car with No Credit

The average down payment on a car with no credit can vary. The majority of subprime lenders — banks and other institutions that give loans to people with bad credit or no credit — require a down payment of 10% on a loan, or $1,000, depending on which is greater. So, depending on the price of the car you’re trying to buy near Sevierville, you can expect a down payment of at least $1,000. We always recommend reaching out to your lender, bank, or finance team for specifics as this can vary depending on the institution.

However, if you prefer buying a car with bad credit but with a large down payment, you can make a big difference in lowering your monthly payment by paying as large a down payment as possible. That will save you longer in the long run in terms of interest. Essentially, if you’re asking, “How much down payment you need for a car with bad credit? The best answer is “as much as possible.”

Value Your Trade, Save Money

Now that we’ve gone over the average down payment you need on a car with no credit, let’s touch on trade-ins. If you want to save as much money as possible and purchase a solid used car for only a few thousand dollars; $1,000 may seem like a lot of money. But there’s no need to worry, you already have something to help you cover the cost: your old car! Here at Ole Ben Franklin Motors we offer trade-in allowances to all %%target_city_3% area customers that can help cover your down payment. These can make buying a car with bad credit but with a large down payment completely achievable! 

Come to Ole Ben Franklin Motors to Buy Your Next Car!

Now you know how much downpayment for a car with bad credit to expect, come to our Knoxville dealership to buy your next new or used car! If you apply for financing online, you’ll be instantly approved! Offer little to no downpayment on one of our vehicles today with our dime down payment option. Learn more today by visiting our dealership!

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