What is the maximum percentage for a car down payment?
2 Answers
The maximum down payment percentage for buying a car depends on the type of loan used. Here are the down payment scenarios for several car financing methods: 1. Applying for a loan with the purchased vehicle as collateral: The down payment must be no less than 30% of the car price, and the loan amount cannot exceed 70% of the car price. 2. Applying for a loan through a pledge method: The down payment must be no less than 20% of the car price, and the loan amount cannot exceed 80% of the car price. 3. Applying for a loan with third-party guarantee: The down payment must be no less than 40% of the car price, and the loan amount cannot exceed 60% of the car price.
I did thorough research on down payment ratios when I bought my last car. National regulations stipulate a minimum down payment of 15% for new energy vehicles or 20% for fuel-powered vehicles, but there's actually no legal upper limit for the maximum ratio. As long as you have sufficient funds, you can make a down payment of 50%, 80%, or even 100% for a full cash purchase. In actual transactions, I've seen customers make down payments as high as 95%, borrowing only a few thousand yuan for the remaining balance. However, it's important to note that some financial institutions may set minimum loan amount thresholds, such as requiring the loan amount to be no less than 10,000 yuan, which indirectly limits the maximum down payment ratio. It's advisable to consult with bank or 4S store financial specialists in advance to confirm the details. If cash flow is sufficient, making a larger down payment can significantly reduce monthly payment pressure and total interest expenses.
