Do I need a down payment to buy a car?

Not always, but it helps. Some lenders approve loans with little or no money down, depending on credit, income and the vehicle. A down payment lowers the amount financed, the monthly payment and total interest, and reduces the chance of owing more than the car is worth. Some loans and leases still require money at signing for taxes, fees or the first payment. On OffLot, the What can I afford? tool works back from a monthly budget to show a price range.