i am in the army, i am an E2 and i am interested in financing a 2015 ford focus. i have around 7k saved up, but not sure how much i should put down. Any advice?
I dont really have any credit.
William: You are any E2 which means you do not make enough money to purchase a 2015 vehicle. You have $7,000 so that means you can get a decent car and not have to borrow one cent. That is exactly what I would advise you to do. At your salary the last thing you need is a car loan. Be smart and just pay cash for a decent car.
You should pay up to $7000 for a car from a private party. Don't even consider financing with no credit.
Dealers will rip you a new one. While you can get approved with $5000 down, they will kill you on price and rates. (A $14k car will be $16k for you)
Good job on saving the $7000. Now find a private party selling a good car for no more than PP value and ideally $500-800 less.
You don't want any prior paint or body work and take a long test drive.
If your credit isn't good, or you don't have much, the less you need to borrow the easier it is to get a loan. So put down as much as possible.
But seriously, you can do better than a Focus. The get poor reliability ratings. I would spend 12$ on an online subscription to Consumer Reports, and do more research. You would be much better off with a Mazda 3, and they are a lot more fun to drive. Or even a Hyundai Elantra. MUCH more reliable cars.
With no credit or credit history the minimum is usually 25-30 percent down. Plan on $4000 to $5000. You'll need the rest for insurance.
The more you put down the less your payments will be and the sooner you will get it paid off consider putting down the full $7,000 if you want to that will minimize your payments and you ll have the car paid off in approximately 18 months otherwise I would go with 2000
20% should be enough to secure a good loan rate. Keep in mind the more cash you spend upfront means the less you pay every month.