Updated August 02, 2023
A car (vehicle) downpayment receipt is a written record of the initial payment from a buyer to seller towards the purchase of a vehicle. A downpayment is a percentage of the total amount of the vehicle and is only made after a purchase contract has been agreed upon.
While the purchase contract will have details regarding the downpayment, the buyer is recommended to request a downpayment receipt. The receipt will have information that only pertains to the initial payment made towards the vehicle.
How Much ($) Should a Downpayment be?
Traditional loans that offer the lowest interest rates will require at least 20% of the vehicle’s purchase price as the downpayment. According to a 2019 Edmunds study, it showed that the average car buyer was paying 11.7% for new and used vehicle purchases. Therefore, finding the best car financing often depends on the availability of credit based on the buyer and the current market conditions.