 TITLE: How Much of a Down Payment Should You Make on a Car? CONTENT: Why Should I Make a Larger Down Payment?\n----------------------------------------\nThere are several great reasons to make a larger down payment on a car. They include:\n*   **Lower monthly payments**: When you make a larger down payment, the size of your loan will be smaller. Compared with a loan with the same terms but a smaller down payment, your monthly payments will be lower.\n*   **Shorter loan term**: A larger down payment could remove the temptation to stretch out your loan over a longer period in an effort to reduce monthly costs. For instance, with a larger down payment, you might pick a 48-month term rather than a 60-month term. A shorter term means you won't have the debt for as long, and a larger down payment can keep your monthly payment down.\n*   **Less interest**: With a larger down payment and shorter loan term, you'll pay less in interest charges over the life of the loan.\nMaking a larger down payment can have many benefits, but when trying to figure out the right amount for you, be sure not to drain your savings accounts for the sake of the above benefits. It's key to keep enough money in your bank account to act at least as an emergency fund. Depleting your assets can also set you back in your progress toward other financial goals, such as a down payment on a house. END