That shortens the time you’ll be paying interest on the loan, says Alain Nana-Sinkam, co-founder of Remarkit Automotive, a firm that analyzes market trends. Putting down more money up front also means you’ll be paying interest on a smaller amount, costing you less overall.
“With interest rates trending higher, CR recommends that buyers make a down payment of at least 15 percent when buying a vehicle, and 20 to 25 percent if you can afford it,” says Chuck Bell, programs director for advocacy at Consumer Reports.
