How much should you save each month for a car down payment?
A common target is 10% to 20% of the car's price. For a $20,000 used car, 20% is $4,000. If you already have $500, keep savings in a 4.2% APY account, and plan to buy in 12 months, you need about $284/month.
A bigger down payment means a smaller loan and less interest, and it helps keep you from owing more than the car is worth.
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Not financial advice. These tools are for planning only. Numbers are illustrative; your lender's statements control.