This is one of the major problems that consumers find themselves in when they purchase an automobile.   Buying a vehicle with no money down.  Believe it or not, this is the worst thing a consumer can do when they make a big ticket purchase.  Why?  You see when you buy a vehicle with no money down a consumer not only pays a higher interest rate, the’re also upside down on their new vehicle.  In order to keep this from happening you want to at least put 10 to 12% down.  That way you are not financing the sales tax, dealer fees, or any government fees that may apply.  These fees can add up quickly depending on the overall cost of the vehicle.  Look at it this way; sales tax alone on a $40,000 vehicle is around $3,200.  If you don’t put money down on this particular vehicle you’re already $3,200 upside down and we haven’t even added in the dealer doc fee or government fees.    So, what’s the big deal about being upside down in my vehicle?  The average consumer trades vehicles every 2 to 3 years after a purchase because they either want to or their has been a major change in their lives like a growing family.  If you owe more than what your vehicle is worth when you go to trade it in guess what?  You’re going to have to put money down to cover your negative equity to be able to trade.  So, why not go ahead and put this money down @ your initial purchase and you won’t be bothered with this when you trade.  You see, you might not need money down initially but you will when it comes to trading the vehicle in the long run, and what I find is that when families need to trade a vehicle they’re not in the position to take care of their negative equity, and I always ask them, “Did you put any money down when you bought your vehicle?”  The answer is always no when they’re upside.  Always put money down when you buy a vehicle.