How Much Should a Car Down Payment Be?
Buying a new or used car can be confusing and frustrating if you don't do your research. Before you head out to the car lot, take the time to evaluate your finances so you'll know how much you can afford to spend. One of the most important considerations is the amount of the down payment you'll need. If you can calculate a down payment for a car, you'll have an easier time deciding if you can afford the purchase.
Determine the final price
This will likely be different from the sticker price on a new car, or even the asking price on a used vehicle. Dealerships will often negotiate with you on the purchase price.
In this example, assume a sales price of 25,00,000.
Get pre-approved with your own lender.
Dealerships may benefit from shopping your loan out to their preferred providers, but you probably won't. It's best to get a pre-approval from your own bank or credit union before you shop.
Find out what percentage of the sale price your lender requires for a down payment.
On used or new car loans, most lenders will require you to have at least 20-30 percent of the sale price as a down payment.
If you think to take loan from bank then it would be better to pay the full amount of the car to dealer by your cash and loan amount. Therefore, it would be better to handle the car loan installment amount easily.
In this situation, you may talk with your bank for the assessment of loan amount and the monthly installment amount for clear understanding.
Auto Loan related information:
- Minimum: BDT100,000
- Maximum: 30% of car value (as per Central Bank guidelines) up to a maximum of BDT 2,000,000.
- Loan tenure Brand New Vehicle: 12-72 months and Reconditioned Vehicle: 12-60 months.
- Interest rate 15 to 17% p.a.
Auto Loan Repayment Schedule
|
Loan |
Interest |
Monthly installment (TK.) |
||||
|
60 months |
48 months |
36 months |
24 months |
12 months |
||
|
Tk.1,00,000/- |
15.50% |
2,407/- |
2,810/- |
3,493/- |
4,874/- |
9,051/- |
|
Tk.20,00,000/- |
15.50% |
48,140/- |
56,200/- |
69,860/- |
97,480/- |
1,81,020/- |
Source:
- http://www.hsbc.com.bd/1/2/retail-banking/loans/car
- http://www.standardchartered.com/bd/personal-banking/loans/auto-loan/en/
- http://www.onebankbd.com/car-l.php
- http://www.ificbank.com.bd/auto_loan.php
- http://www.dhakabankltd.com/prod_perso_cl.php