HOW MUCH IS A CAR DOWN PAYMENT?
When it comes time to buy or lease a car, it’s recommended that you put money down initially to lower your monthly payments. However, many drivers near North Andover, Peabody, or Danvers may not know how much a car down payment is.
In this informative guide, we’ll explain how much money you should put down for a new or used car. We’ll also go over several benefits of a car down payment. Read through the information below to find out how much a car down payment is, and contact us at Ira Lexus of Danvers if you have any questions.
HOW MUCH TO PUT DOWN ON NEW & USED CARS
How much money you should put down initially depends on whether you buy or lease a car, and whether you’re getting a new or used one.
If you’re buying a new car, you usually want to put down at least 20% of the purchase price. This is to offset the quick depreciation. Whereas if you’re buying a used vehicle, at least 10% of the vehicle’s sale price is the recommended amount.
But if you’re leasing a new car, the initial payment is usually pre-determined. You may want to follow the loan strategy and put down as much money as possible. However, in this case, you’ll want to stick to the required cash due. A lease is to minimize a lessee’s cash out, and paying more initially will counter that purpose.
CAR DOWN PAYMENT BENEFITS
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BETTER CHANCE OF CAR LOAN APPROVAL
If you put a good amount of money down initially, you’ll have a better chance of GETTING APPROVED FOR FINANCING. The down payment can be cash or from a trade-in. Regardless of its source, and no matter your credit history, putting down at least 15% will up your chances for getting a respectable auto loan.
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LOWER INTEREST RATE & MONTHLY PAYMENTS
If you put down a substantial amount right away, it shows to lenders that you’re committed to the car and are a lower-risk borrower. This means that you’ll get a better interest rate, which means you’ll get to pay less interest over the life of a loan.
Not only that, but the more money you put down, the less you’ll have to pay each month. A good way to determine your monthly payments is with an auto loan calculator. By entering in basic information like the vehicle’s price and a trade-in/down payment amount, you can get a good idea on how much you’d be paying per month.
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NOT BEING “UPSIDE DOWN” ON A CAR LOAN
Another good reason for a car down payment is to avoid being “upside down” on your loan. If you make too small a payment initially, you may end up owing more than the vehicle is worth.
When a car is 100% financed, you’re paying more than the vehicle’s value. This is because you’re also including sales tax, interest, and other fees. If you put zero down initially, then the car will already be worth less than the loan you’ve taken out.
This is called being “upside down,” which can be financially dangerous. If you’re in this situation, you may not be able to trade in your car if you ever want to buy a new one. Or, you may have to roll the amount that you owe on your current loan over to another loan for a new car.
By applying a car down payment from the get-go, you’ll avoid being in this predicament.
LEARN MORE ABOUT CAR DOWN PAYMENTS
WHILE PUTTING MONEY DOWN ON A VEHICLE IS GREAT, IT’S IMPORTANT TO FIND THAT SWEET SPOT BETWEEN PAYING TOO MUCH AND NOT PAYING ENOUGH.
IF YOU NEED MORE INFORMATION ABOUT CAR DOWN PAYMENTS, THEN CONTACT THE FINANCE EXPERTS AT IRA LEXUS OF DANVERS. AND WHEN YOU’RE READY TO GET A NEW OR USED VEHICLE NEAR NORTH ANDOVER, PEABODY, OR DANVERS, WE’LL HELP YOU GET STARTED RIGHT AWAY.
SO, DON’T WAIT. CONTACT US TODAY!
The waiting area is very nice, lots of space to sit, nice snacks and a quiet area if you need to work.
Very good customer service, timely, courteous, personable. Quality of work provided is where it should be and what to expect.
The service department is absolutely phenomenal! They go above and beyond to take care of their customers. I am a long time customer and won’t bring my car anywhere else!
Great service and the service advisors are friendly. They communicate very well as your car is serviced.
Your service and replacing the Lexus letters on the back of my car was excellent although costly. Dealing with Eli your service manager was wonderful and easy. Overall. it was nice dealing with the Lexus service department.
The whole visit, to test drive, to selecting vehicle and purchase js smooth and done in a couple of hours. One of the best experience I have had.
All work done explained in details. Any issues resolved quickly. Great to work with Assistant Manager John Luna and Manager Rick Chase.. This is my service dealership to go to!!!
Nothing noteworthy to say. Overall did a good job.Nothing else of significance to add
Bought my 2022 as a CPO and I have been back for maintenance twice and they tell me it is not listed as a CPO even though it shows that it was purchased as on. Both times they have said that someone will call to fix it and that call never comes. It makes me wonder if this is common practice counting on some people giving up and just paying.
Service provided efficiently and promptly. Easy to book and modify on line. Very professional service center with high quality waiting area.
Wonderful customer service, all interactions were professional, positive and satisfactory. The whole experience was exceptional.
Abraham is very honest and tells you how long the service will take. He is very good
Great team to work with especially O.G., who went above and beyond. He was especially helpful and patient working with my wife on getting the Lexus app up and running as well as working with the Falmouth [ME] town hall. Also appreciate the financial team working through the registration issues with our trade-in. Delivery to Falmouth saved us a day and 200 miles when we were on a short time line.
I previously completed this but had the wrong name. John Luna assisted me and was great. He combined my service and then was able to add on the recall and inspection sticker. This saved me three trips. He also assisted with fixing my Bluetooth and CarPlay problem. He is highly personable and helpful and a valued employee. I’d work with him again.
Pleasant staff, video of my car being serviced and showing tires off and evaluation. Timely work.
John M. was great to work with. He clearly explained what my car required for service. He also coordinated the recall at the same time off of this appointment and even got my inspection sticker done. This saved me three separate appointments. Upon picking up my vehicle, I remembered that a my car kept having trouble pairing with the Bluetooth and Apple CarPlay. He took time and was able to fix this issue that I've been having for months. John went the extra mile to assist me. He is a valued employee and I would definitely work with him ... Read More DealerRater - Oct 9, 2026
Fantastic service experience from scheduling thru completion of service. excellent customer service and communication throughout. Comfy waiting area with a quieter waiting area off to the side where one can get some work done while waiting.
I have found everyone that I’ve dealt with to be friendly, professional and helpful. Keep up the good work!
Abraham is by far one of the best customer service experiences I’ve ever had across the board. Very professional, very friendly, and made the process so smooth.
Every step of this process was professional informative and helpful. Ed Cho was so knowledgeable patient and thorough. The best sales experience I’ve ever had buying a new car. He spent probably close to 8 hours with me in my 3 visits to complete the process. I’m 77 years old and needed a lot of recent info since my last car was 15 years old ((not a Lexus) . I’m looking forward to experiencing Lexus further help and services
I had a great experience at Ira Lexus! Bryanna took care of me and was so nice, helpful, and professional. I showed up without an appointment because I was having an issue with my car, and they were able to get it fixed as quickly as they could. Bryanna explained everything thoroughly and made sure I understood what was going on with my car. Everyone I interacted with there was extremely friendly, welcoming, and helpful. They made the whole process super easy and stress-free. Definitely recommend Ira Lexus and Bryanna!
Had the pleasure of working with Mr. Ed Cho. Early on in our search we met Ed and took a new 2026 for a test drive. The car speaks for itself, there's no denying that. Over the next 2 months our search continued, and Ed continued to provide us with listing via email and text. Ed's professionalism, knowledge and willingness to go the extra mile did not go unnoticed. We eventually made our way back to IRA Lexus and to Ed and made a purchase. Ed walked us through the process, put up with a barrage of questions and concerns ... Read More DealerRater - Oct 1, 2026
I really appreciate the video detailing repairs needed. Great customer service and comfortable waiting room.
My experience at Lexus was amazing and I’m very happy with my car and the buying process overall. I especially appreciated how patient Ed was while I compared different vehicles and took the time to find the right one for me. I never felt pressured to make a decision, and my questions were always answered honestly and thoroughly. Even when discussing add on’s, I believe the woman’s name was Diana (?) was awesome and explained everything to me without pressuring me to add anything. I will now always recommend Lexus and have become a life long customer!
I have moved from Brooklyn, NY very recently so I have comparison of both dealerships. I was impressed from the very beginning how friendly all people were starting from the welcoming man, the wonderful advisor Jennifer and the female technician I had a chance to meet. All of them were easy to talk to. They understood my concerns very well and gave me so much attention and advices. Jennifer found every detail about the services done in the past and explained all needed services. The technician came specifically to explain to me why the service I wanted had to be ... Read More DealerRater - Sep 26, 2026
Tyler helped guide me with the service I needed!! He is great!! He is knowledgeable and professional!! A great asset to the team!!
They took care of me and my car warranty for an expensive repair my vehicle required.
The service department took care of the issue I was having and I am satisfied with the work.
Ryan is an excellent representative in the service department at Ira Lexus. Our 8 yr old Lexus is still going strong.
Very helpful and friendly! Full of information! Kal was my salesman and he helped me decide what vehicle would b good for me .. I never felt pressured and appreciated his service.
Excellent service. Nothing else to add. Dislike being forced to giving a 15 word minimum review
We purchased a 2026 Lexus NX350 Premium from IRA Lexus of Danvers on Nov. 8th thru Sales Consultant, Belo Makhene. He was extremely knowledgable of the vehicle, friendly and excellent to deal with, which made for a wonderful buying experience. - Doris & Norm
As always excellent service. David was speculator in his attention,detail, explanation and clarifications and communication. Without doubt great overall experience.
Professional services. Respond questions quickly ,patiently and friendly. High quality services. Waiting area are very clean and comfortable
Customer driven service that should set a standard for other businesses in the auto service industry!
Service is perfect and staff is so helpful and friendly. I could t ask for more. They were awesome in all departments.
Lexus of Danvers by far is so accommodating and professional. The entire staff just make you feel welcomed and respected. I won’t go any where else top notch. They communicate and want to help you with any questions. Thank you to all Julie Williams
John was a true professional, and went above and beyond. I will only send my Lexus to this dealership moving forward.
Alex was great to work with - I love my new hybrid! Alex explained all the features and made sure I understood how to use them.
Completely satisfied with their work, the waiting room is wonderful with soda, muffins and cookies.
I brought car in for service was told it would take 2 hours and it took just under 4 hours That is ridiculous If they had said 4 hours I would of taken a loaner
Outstanding service tech representative. Was extremely helpful in getting the issue resolved in a timely manner. He kept me fully informed of the repair status and offered additional advice regarding how to best maintain my RX-350. I always chose Ira for their quality service.
I took my car for service yesterday. Elias was very helpful and courteous. The wait was a little long but my car was serviced and washed. Win, win!
Was the best experience I have had in going into a car dealership The salesman, Kal was tremendous He as very knowledgeable and easy to deal with I’m 70 months years old and have had many experiences buying vehicles and this was the best !
Dealership is very nice. Jason was a great representative for the company. He was easy to talk to, accommodating, & professional
They do great job i can go tp other place close to home i choose ira lexus they take good care
Excellent service at Lexus of Danvers! Professional, friendly, efficient, and attentive. I’m very pleased with my experience.
A curtious, timely, professional and informative experience is what I experienced at IRA Lexus service. It's what's kept me a loyal customer for so long.
Ed did a great job delivering the the car very professional .Helped set up the phone app for my new ES. Thank you Ed
Appreciated Ryan’s great service. The wait is rarely long and I was acknowledged quite quickly
Very happy with service today! Much better than my last visit! Thank you C Abrams
Ira lexus of Danvers the best place in Massachusetts. I am a customer of lexus since 2013. I like my lexus experience as a customer. Very reliable, lexus certified professional technicians knowledgeable, easy to schedule an appointment. Polite and friendly service advisor. My name is Tanya L.
Remi is the best. Always takes great care of me. I appreciate the service Thank you
Excellent Communication and experience from Abe. Car was ready as originally scheduled. Having a free loaner is a great feature, one of the reasons why I keep buying a Lexus.
Remi was very helpful in making recommendations regarding our Radio/GPS unit. Look forward to finalizing the deal with him.
Very good service nice customer service my car is running perfect great I like the service
Ed was absolutely fantastic…He was very knowledgeable and professional. It made the whole process efficient.
Very accommodating. I got an appointment quickly, and service was exceptional. Would recommend this dealership.
Olti is great! He was very helpful and incredibly knowledgeable, answered all my questions, and made sure I felt confident in my decision
Excellent staff that are very knowledgeable and helpful with every step of the process for trading in and buying a new car
Remi was great! He was very communicative and honest. Overall it was a great experience.
Waiting area is super clean and Elias was attentive and knowledgeable. Making my appointment was super easy via text.
Excellent service.. prompt.. recieved car back when promised. John Luna was a very knowledgeable Assistant Service Manager!
Joe was very helpful & made the service visit easy. The refreshment section was very nice too. The shuttle drivers were friendly too!
We were looking for a vehicle with seating and towing capacity for the next stage of life, considering Lexus, but they had a barely used Toyota on the lot that met our needs perfectly. Ed was super helpful, knowledgeable, and available. Very easy and comfortable to work with. Price was competitive with other dealers for similar models. We test drove many vehicles within range, but always felt Ed was focused on what fit our needs.
I have used IRA Lexus since 2000 and have had excellent service all of the time. When my husband was alive we owned 2 Lexus autos that IRA cared for meticulously.
Excellent service, fair prices, friendly employees, beautiful waiting area, free refreshments, free transportation including loaner cars.
Ed Cho was a delight to work with. He was patient, well informed and just a quality human being. I would highly recommend Ed to anyone looking for a Lexus.
This week I had the pleasure of meeting with Abraham in the service department. He could not have been more kind, pleasant, knowledgeable, and patient. He took the time to help me make a decision about what was best for my car and he made sure he gave me the best possible price.
I have been a Lexus customer for many years and I have always received very good customer service. From the moment I drive in to drop my car off to picking up my vehicle after completions.
There is no question that I would highly recommend Lexus of ... Read More DealerRater - Jul 31, 2026
Outstanding personnel, a pleasurable experience. The review demands a minimum of 15 words but I think what I wrote says it all.
I felt like I was in good hands from the moment I drove in. Very efficient and got me on my way within a reasonable amount of time.
They always do an excellent job repairing my vehicle and cleaning it up for me. The “ pick up / return” of car is fantastic!!! Thank you.
First time buying new car , Lexus is cream of crop , buy my dealer was also cream of the crop , if anyone out there wants buy a new car I have six words , Ed Cho Ed Cho Ed Cho, never met him before and it was like buying from an old friend , he’s absolutely great
Thoughtful, caring and punctual…..they strive to be honest about the time your service will take so I was impressed….also not very waiting area
Ed Cho is a great sales person.He help to bye my best car from selcting to final delivering.Not only simple delivering he explain very detail fuctions of the car so I have no problem to operate my car.I am 100 % satisfy with my purchase,LEXUS NX350h AWD.I hope I will keep for ever and will be my last car, I am 81 years old. Wishing all the best Ed Cho and Ira Lexus of Danvers. Thanks KISHOR DESAI
Ed Cho is a great sales person. Kind and patient. He has a great personality and is very thorough in describing features of the cars.
Great service department. Abraham is an excellent service advisor. No stress, easy in and easy out!
Everyone there is knowledgeable, friendly, professional. They make it so easy to bring your car in for service!
This is my 11th Lexus leased with IRA. There is not enough room for all the Accolades I would give this dealership!!!
I had a great experience buying a car at Ira Lexus in Danvers. I was given a number for my trade that helped to put me in a new car.
Excellent service was provided by the service team. All of the staff I worked with was happy to help and keep me updated about my vehicle service. I will be recommending this service team to my community!
Outstanding experience! Roberto was knowledgeable, friendly, honest, and made the entire car-buying process smooth and stress-free.
Visited IRA Lexus today of Danvers for service on my vehicle. Had Ryan Garcia today as a service advisor, he was very exceptional with great attention to detail about the work done on my vehicle. Great to know he works there!
Seems to be a busy dealership but strives to keep the process of service smooth. It can be difficult but the public facing people are upbeat and interactive with customers. Good overall experience but wish the details checked as part of the inspection were outlined in receipts vs referral to standard at mileage interval requiring more research on what done. The car is new so perhaps not needed but old folks like me appreciate knowing. Again not a complaint but rather an observation and imho as the kids say.
I had my cars service session with IRA Lexus in Danvers. It was a top notch service across the board. Could not expect any better. They treated me and my family like MVPs.
The Lexus dealership provided Expedited service with great communication Ryan kept me in the loop with stays updates
Mr. John Ponce is friendly and professional. He is patient and skillful. We greatly appreciate the reception that we received.
Great service, very reliable and professional, and a great place to buy a car from
Great service. I have been with Ira of Danvers for 10 plus years. Maria also purchased her Lexus here.
Everyone is very professional and curtious From the time I drove in to the time I picked up my car
Ira Lexus has always treated us the best. They will accommodate even the oddest pickup/drop off requests. Even with having a closer Lexus dealer we still prefer Ira.
I love this place. Today I dealt with Assistant Mgr Tyler Costa. He explained everything. My car was done at the time it was promised, and it was washed and vacuumed. What else could you ask for? Thank you Tyler. You make it so easy.
The service department managed by Rick Chase is very helpful and respectful. Rick walked through the issues and made helpful recommendations
Overall IRA Lexus meets all our needs from sales to service. We will always come back.
Lexus of Danvers is great!Staff is always helpful, especially Jenn Perry and Tyler Castro.
Perfect work on my brake replacement ❤️ I’m so happy for this work on my car
I was stuck at Savers and car would not start. I called AAA and Kevin came out in 30 minutes and jumped the battery and said the battery was fine. I decided to stop by Lexus because dash lights were on. Lexus kept my car, drove me home and called several hours later telling me that the battery was no good . I told them to install a new battery. The dash lights wouldn’t go out so the car was kept overnight. The next morning the lights went out and I was satisfied that the car was operational. A valet brought ... Read More DealerRater - Jul 3, 2026
I usually have great service. This time meh.. they had my car for 2 days. It was supposed to be an oil change and 145,00 mile service. They suggested new tires and I declined at this time. So when I went to pickup the car they only did the oil change. They also never called day 1 to tell me my car wouldn’t be ready. I needed to call them. Luckily I had a loaner car from them.
great staff-so friendly and helpful-especially Ryan Remi Gracia! the waiting area is well desined and stocked.
Very friendly and very helpful! Service was done according scheduled and did wash my car!
