 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 5\\. Save for a Down Payment\n---------------------------\nHow big does the down payment on a car need to be? Just as with buying a home, most lenders like to see a down payment that's at least 20% of the car's price. (If you're buying a used car from a dealership, a 10% down payment is generally sufficient.)\nThere are several reasons a 20% down payment makes sense:\n*   New cars typically lose a portion of their value in the first year of ownership, so a down payment of 20% helps make sure you never owe more than your car is worth.\n*   The bigger the down payment, the smaller the loan you'll need.\n*   A bigger down payment generally earns you more favorable loan terms, which saves you money in the long run.\nMany dealership, automaker and automotive websites have online payment calculators you can use to arrive at the best down payment amount. By putting in various car prices and loan terms, you can estimate how different down payment amounts might affect your monthly payment and the amount of interest you'll ultimately pay. END