Quote:
Originally Posted by roughyear
Just my opinion.... but curious, why would you want to put a down payment on a car?? All my cars are ZERO down , I just roll it all into the payment. Yes, I guess there is that psychological "lower payment", but if you carry a balance on your credit cards, you're gonna be paying a lot more for the down payment you just made to get the payments down to where you want them.
Plus you get crushed if you turn the car in early or forbid an accident should total the car. Then you're out a substantial amount of cash.
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In addition what was pointed out above, you also need to consider what gets you the best return on your money. Depending on where you have your assets invested and in what, market conditions, interest rates, etc., it may be less expensive for you to make a large down payment or even just purchase it outright.
Just like every other financial decision, no rule of thumb applies. You need to look at the specifics of each situation as well the the person's specifics (risk tolerance, age, assets, future plans, etc.) to determine what would be course of action.