If you haven’t purchased a vehicle in a few years (or ever), you may be surprised to learn that many dealerships and financial institutions don’t require a down payment when buying a vehicle. In some cases, zero down is only available to those with good credit history, but in other cases, customers can utilize this ability regardless of their credit. But how good of a deal is it? Continue reading to learn more about no money down when purchasing a vehicle and whether it’s a good deal for you.
What to know about zero down auto loans
When shopping for a vehicle, it’s important to research your financial options. As such, we wanted to include a few things to consider if you’d like to get a no money down car loan. If you have poor credit, a no money down loan may have a higher APR, which results in more interest paid. Regardless of your credit score, making a down payment on a vehicle purchase translates to less money paid over time, which may result in less interest paid overall. You’ll want to shop around at different lenders to find the best deal. This may include your bank, credit union, or an online lender.
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Tips for getting a good no money down car loan
Depending on your financial situation, getting a no money down auto loan may be your only option or the option that makes the most sense for you. In an effort to help you during the entire process, we wanted to include a few tips to keep in mind when shopping around:
- Trade in your current vehicle. In some cases, this may count as a down payment.
- Get multiple loan offers and use them to negotiate with other lenders.
- If you’ve kept a steady job and lived in the same place, this shows stability, which is a positive thing for lenders.
- Even if your credit history isn’t the best, on-time payments work in your favor.
- If your debt is low, relative to your income, lenders may be more inclined to give you a better deal.
- Choose an affordable vehicle that matches your budget and financial situation.
If you have any questions about no money down car loans, we invite you to get in touch with our team at Skook Auto Sales. As a Buy Here Pay Here dealership, we are committed to helping you find a vehicle that works for you with a price and financial plan that fits in your budget. We look forward to working with you!