- Many subprime programs look for roughly $1,000–$2,000, or about 10% down.
- More down means lower risk for the lender, which can mean a better rate and more options.
- A trade-in can count toward your down payment.
- There is a point of diminishing returns, you don't need to drain your savings.
Why lenders care about the down payment
A down payment lowers the loan-to-value ratio, the size of the loan compared to the car's worth. The less a lender has to finance relative to the vehicle, the less they stand to lose, so they price the loan more favourably. For a rebuilding file, down payment is often the difference between a thin set of options and a real choice of lenders.
What's typical
Across GTA subprime programs, a common starting point is around $1,000–$2,000, or roughly 10% of the vehicle price. Post-bankruptcy or active-proposal files often see a slightly higher expectation ($1,500–$3,000) because the lender wants more cushion. First-time and newcomer programs can sometimes accept less.
How a trade-in plays in
If you have a vehicle to trade, its value can serve as part, or all, of your down payment. That's useful when cash is tight: the equity in your current car does the work instead of money from your bank account. Just make sure you understand its real value before you negotiate.
How to pick your number
Put down enough to meaningfully lower the rate and keep the payment comfortable, but not so much that you leave yourself with no emergency cushion. A larger down payment that empties your savings can backfire if life throws you a surprise the month after you buy. Aim for the amount that gets you a payment you can make every single month without strain.
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