If you were planning on buying a car any time soon, you might want to bring more money with you for a down payment. Tighter credit standards are forcing many dealers to require a larger down payment to get approved for an auto loan, reports USA Today.
The average down payment last month was $3,108, up 42% from $2,194 in the same month two years ago, according to Edmunds.com. That makes it the highest average down payment since Edmunds began tracking down payments in 2002.
Lenders are just afraid to take a risk on you right now. The more money you give them up front, the better chance you have that they will loan you money for your car. If you don’t have at least 10 to 20% saved for a down payment, experts say you should wait to buy a car.