 TITLE: Can I Buy a Car With No Money Down? CONTENT: Even a Small Down Payment Could Help\n------------------------------------\nA 20% down payment is ideal, especially if your credit is less than perfect. However, any size of down payment, no matter how small, will help to reduce your total loan costs and monthly payments.\nSuppose you want to buy a car that costs $20,000 with no down payment. With a 60-month loan at 5.13% interest, you'll have monthly payments of $415. Throw in a $1,500 down payment, however, and your monthly payments go down to $387.\nWhat if you don't have any money saved for a down payment? Sometimes you need a new car unexpectedly due to problems with your old car. Good news: Your old car can be part of your down payment as long as you have car equity.\nCar equity means your trade-in vehicle is worth more than you owe on it. If you own your car free and clear and the car is worth $2,500, you have $2,500 of car equity. If you owe $1,500 on your car loan but the car is worth $4,000, you also have $2,500 of car equity ($4,000 - $1,500).\nAdd a trade-in worth $2,500 to your $1,500 down payment, and you have a down payment of $4,000 (20% of the new car's total cost). With a 20% down payment, your monthly payment for the same loan goes down to $340—a significant difference. END