diff --git a/tensors.py b/tensors.py
index e2e0268..f8de03f 100644
--- a/tensors.py
+++ b/tensors.py
@@ -32,9 +32,24 @@ console = Console()
 
 RC_FILE = Path.home() / ".sftrc"
 
+# Default download paths by model type
+DEFAULT_PATHS: dict[str, Path] = {
+    "Checkpoint": Path.home() / ".xm" / "models" / "checkpoints",
+    "LORA": Path.home() / ".xm" / "models" / "loras",
+    "LoCon": Path.home() / ".xm" / "models" / "loras",
+}
+
 
 def load_api_key() -> str | None:
-    """Load API key from ~/.sftrc if it exists."""
+    """Load API key from ~/.sftrc or CIVITAI_API_KEY env var."""
+    import os
+
+    # Check environment variable first
+    env_key = os.environ.get("CIVITAI_API_KEY")
+    if env_key:
+        return env_key
+
+    # Fall back to RC file
     if RC_FILE.exists():
         content = RC_FILE.read_text().strip()
         if content:
@@ -42,6 +57,13 @@ def load_api_key() -> str | None:
     return None
 
 
+def get_default_output_path(model_type: str | None) -> Path | None:
+    """Get default output path based on model type."""
+    if model_type and model_type in DEFAULT_PATHS:
+        return DEFAULT_PATHS[model_type]
+    return None
+
+
 CIVITAI_API_BASE = "https://civitai.com/api/v1"
 CIVITAI_DOWNLOAD_BASE = "https://civitai.com/api/download/models"
 
@@ -611,14 +633,6 @@ def _resolve_version_id(
 def cmd_download(args: argparse.Namespace) -> int:
     """Handle the download subcommand."""
     api_key: str | None = args.api_key or load_api_key()
-    output_dir: Path = args.output.resolve()
-
-    if not output_dir.exists():
-        console.print(f"[red]Error: Output directory not found: {output_dir}[/red]")
-        return 1
-    if not output_dir.is_dir():
-        console.print(f"[red]Error: Not a directory: {output_dir}[/red]")
-        return 1
 
     # Resolve version ID from hash or model ID if needed
     version_id = _resolve_version_id(
@@ -629,7 +643,7 @@ def cmd_download(args: argparse.Namespace) -> int:
             console.print("[red]Error: Must specify --version-id, --model-id, or --hash[/red]")
         return 1
 
-    # Fetch version info to get filename
+    # Fetch version info to get filename and model type
     console.print(f"[cyan]Fetching model info for version {version_id}...[/cyan]")
     version_info = fetch_civitai_model_version(version_id, api_key)
 
@@ -637,6 +651,28 @@ def cmd_download(args: argparse.Namespace) -> int:
         console.print("[red]Error: Could not fetch model version info.[/red]")
         return 1
 
+    # Determine model type for default path
+    model_type: str | None = version_info.get("model", {}).get("type")
+
+    # Determine output directory
+    if args.output is None:
+        # Use model type-based default
+        output_dir = get_default_output_path(model_type)
+        if output_dir is None:
+            console.print(f"[red]Error: No default path for model type '{model_type}'. Use --output to specify.[/red]")
+            return 1
+        console.print(f"[dim]Using default path for {model_type}: {output_dir}[/dim]")
+    else:
+        output_dir = args.output.resolve()
+
+    # Create directory if it doesn't exist
+    if not output_dir.exists():
+        console.print(f"[cyan]Creating directory: {output_dir}[/cyan]")
+        output_dir.mkdir(parents=True, exist_ok=True)
+    elif not output_dir.is_dir():
+        console.print(f"[red]Error: Not a directory: {output_dir}[/red]")
+        return 1
+
     # Find primary file or first file
     files: list[dict[str, Any]] = version_info.get("files", [])
     primary_file = next((f for f in files if f.get("primary")), files[0] if files else None)
@@ -762,8 +798,8 @@ def main() -> int:
         "--output",
         "-o",
         type=Path,
-        default=Path(),
-        help="Output directory (default: current directory)",
+        default=None,
+        help="Output directory (default: type-based, e.g. ~/.xm/models/checkpoints for Checkpoint)",
     )
     dl_parser.add_argument(
         "--no-resume",