When you're financing a car with bad credit in Seattle, how much of a down payment you need depends on your lender and the vehicle you're buying. Most lenders that work with bad credit car buyers have a standard minimum down payment requirement, but the more money you put down upfront, the more you save on the overall cost of the loan.

Minimum Down Payment Requirements for Bad Credit

How Much of a Down Payment Do I Need for a Car in Seattle?The minimum down payment for a bad credit auto loan in Seattle varies by lender. However, most lenders that work with bad credit borrowers usually require $1,000 or 10% of a vehicle’s selling price, and they usually take the lower of the two.

If you're not sure what this means for you, it's a good idea to do some research on the types of cars you're thinking about. This way, you can get an estimate of how much you may need for a down payment.

Auto lenders don't typically finance anything less than $5,000, which means if the vehicle you choose costs less than that, the loan has to equal $5,000 after subtracting the down payment, and taxes and fees are added. This means you have the potential of a $500 down payment, depending on the car you choose.

If this still sounds like too much to manage, there could be a problem, since a down payment is usually a requirement for a bad credit auto loan in the Emerald City.

Ways to Make Your Down Payment

Still think that saving up any amount for a down payment is out of reach? Did you know that down payments don't just have to be in cash? It's true. You can also trade in a vehicle with equity to help cover your down payment. Or, you can combine the equity in your current car with cash to come up with what you need.

Your vehicle has equity when your car is paid off or worth more than what you owe on the loan. To use the equity, the loan balance has to be paid first, and then any amount left over can be used toward a down payment on a new loan. If you own your vehicle free and clear, the actual cash value can go toward the down payment.

If you have negative equity, meaning you owe more on your loan than the car is worth, you have to make up the difference between what you owe your lender and the vehicle's actual cash value in cash.

Finding a Seattle-Area Car Dealer

Now that you know what to expect for a down payment when you want to finance a car with bad credit, you need a dealership in the Seattle area that can help you.

More importantly, when you're dealing with poor credit, you need a dealer that has the right kind of lenders to help get you approved. Not all lenders work with bad credit car buyers, and not all dealerships work with the lenders that do. But at Auto Credit Express, we've got you covered!

We're teamed up with one of the nation's largest networks of special finance dealers that have the lending resources needed for bad credit situations. Rather than driving up and down the Sound looking for a dealership to help, start here instead. By simply filling out our easy and free auto loan request form, you can get the process of getting matched with a Seattle dealer started right now.