I am adding a vehicle and loan account; what category do I use for the downpayment? [Edited]

Terry125

I entered an asset account and a loan account with balances. My question is to what catagory do I assign the down payment?

Quicken Kristina

Hello @Terry125,

Thank you for reaching out to the Community with this question. Which category is the correct one to use depends on what works best for you. If this was a personal purchase, then you'd want to select a personal category rather than a business one. If there are any tax implications, then you may want to select or create a category with the appropriate tax line associated with it.

If there isn't a pre-existing category that fits, then you can also create a new category or subcategory for it. For instructions on creating a new category, see this article: https://info.quicken.com/win/how-do-i-create-a-new-category-or-subcategory

I hope this helps!

[Deleted User]

@Terry125 as @Quicken Kristina mentioned, it is what ever works best for you, but a down payment is an expense that also increases an asset or reduces an obligation. The total purchase price of the vehicle is the down payment plus the loan amount. The down payment can be shown as transfer to your asset account. The loan transfer amount plus the down payment transfer amount should be the opening balance for your asset account.