What is a good downpayment for a new Civic?

[deltarogue13]

I'm thinking of purchasing a 2016 Honda Civic EX-T and I have $5,000 to put down right away. Should I go ahead and do that or should I wait a little longer and save up for a bigger down payment? I think it's also worth noting that the car salesman I contacted is a friend of a good friend I have, and he's the one who recommended me to him. He said that he would be able to get me a good deal on a new car.

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[Soma]

An amount that allows you to have a monthly payment you can afford. Secure a loan with a low interest rate and be sure you can still put money away into savings...

 

[PaperWingz]

An amount that allows you to have a monthly payment you can afford. Secure a loan with a low interest rate and be sure you can still put money away into savings...

This. When it comes to downpayments and the length of your financing term you should go for what you're most comfortable with paying monthly.

 

[CdnColin]

So many variables depending on a persons financial situation. Whats importand to you. Some require a low monthly payment, some like the feeling of being debit free. For me it's about the finance/lease rate. Honda Canada usually have pretty good rates. Currently 1.99% on a 3 year lease. If I can make more investing than the finance/lease rate then I want the cash under my control and would put nothing down. If the rate is stupid high then I would put down as much as possible or buy it outright.

If you were in Canada, maybe that $5,000 would be better in your RRSP (Registered Retirement Savings Plan). That would probably get you a 20-30% tax refund, about $1,200. This would just about cover the interest on that 3 year lease. The $5,000 in your RRSP would historicallyally be earning about 5% tax sheltered for 3 years.

There is a similar program in the States I think.

 

[Furious85]

I think the standard is like 10% give or take.

 

[Jay Jay]

I took a lease for 30 months and put down 5k down so my monthly payments would be 400$ exact not more not less, with 0$ it would of been around 630$ which I didn't want.

 

[Rawnerve1]

Im putting 9k down so i can have low payments and pay it off in less then a year. I hate debt and never use credit cards for anything i cant pay at the end of the month.

 

[Billy4202]

I put $13k down to help pay it off early. Know too many people who have stupidly taken out 84-month loans on cars they couldn't afford and are now underwater.

 

[Furious85]

Im putting 9k down so i can have low payments and pay it off in less then a year. I hate debt and never use credit cards for anything i cant pay at the end of the month.

As long as you're responsible, it helps builds credit history. I would take a a 5/6 year loan that doesn't penalize for early pay off than pay it off yearly say in 3 years.

 

[Rawnerve1]

As long as you're responsible, it helps builds credit history. I would take a a 5/6 year loan that doesn't penalize for early pay off than pay it off yearly say in 3 years.

Yeah i hear ya. My credit score is 816 when honda ran it. My car is still in bound so im hoping that on april 5 honda will have 1.9 or .9 on the civic.

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