For consumers with less than perfect credit, a down payment can be one of the best tools to begin a successful auto loan. There are a number of reasons this is a best practice, and statistics have shown that consumers who contribute large down payments have a higher rate of successfully completing their auto loans.

Lenders have found that people who initially invested their own money in a vehicle have a higher rate for successfully completing an auto loan. But time and time again, people with bad credit looking for auto financing hear the words “down payment” and run for the hills. However, no matter how you look at it, a down payment can only benefit almost all car buyers.

Making a down payment on a car loan works to your advantage. Good thing, then, that Edmunds is reporting that down payments continue to rise for both new and used car purchases.

Down payments can be more helpful than harmful.

The average loan amount and loan term for both new and used cars continue to rise, but consumers are getting at least one thing right. The latest data from Edmunds shows that the average down payment on a new car loan in May almost broke the record.

We receive plenty of questions from consumers every month here at Auto Credit Express, where we help car buyers with poor credit find auto financing. One recurring topic we are constantly asked about: getting a bad credit car loan without a down payment.

Coming up with an ideal down payment requires some forward thinking. Your goal is to make the cash that you provide up front significant enough to save you money down the road.

When it comes to a down payment on a car when you have bad credit, we get more than our fair share of questions. Recently, we received this question from a potential applicant that we would like to answer for everybody.