I have been getting conflicting reports as to what figure I should be calculating the percentage of my down payment off of. Some people have told me that the percentage is based off of the sticker price of the car and some have told me the final price of the car... If the car's sticker is $43,000 Would 20% be

$43,000 X 20% = $8,600

OR the negotiated price of $36,500

$36,500 X 20% = $7,200

What is the bank looking at when financing the car?

 

Base your down payment off the negotiated price. Sticker price means absolutely nothing.

 

Down payments can be subjective, often based on your overall credit history. If you have a good credit rating, let’s say anything above 750, you could theoretically drive off with no down payment at all. At any rate, it’s a negotiated item with most lenders.

 

The down payment is almost always calculated on the negotiated sale price of the car and it may or may not include sales tax as well, which could be a hefty amount.