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Want a car loan with bad credit & no money down? We've approved thousands of car shoppers for a bad credit car loan with no down payment. If you don't have the money, we understand! Financial trouble just happens.

Whatever the reason why you need a car, having a car is always a necessity. Being stranded or having zero savings is a tough spot to be in.

You might feel that it's impossible to get a bad credit auto loan. Or, you may have seen a “no money down” sign in a dealership advertisement near you only then to discover you could not afford a new or used car. Don't worry.

Zero down car loans is the answer. You only need to apply and we'll get you matched with a lender who can provide you with the right lending options fit for you.

If you need a car for everyday use without the stress of unnecessary documents and hidden charges we can help.

Short Term or Long Term Loan When Buying a Car

no down payment car loans

What is a No Money Down Car Loan?

Whatever your financial situation, zero down car loans can benefit you in many ways. Here are some advantages you can get from having a zero down Car loan:

  • Instant financial relief
  • A new or used car without making a down payment
  • The second car for your family with no hassle
  • The replacement part of your old one breaks down
  • The ability to make affordable and realistic monthly payments.

Making a down payment is beneficial to both car dealers and financing companies because they get an instant return on investment which helps them continue to finance loans for other people. 

However, there are companies today who do offer car loans with bad credit no money down because they understand the financial needs of each individual. They also understand that most people still pay their loans back despite having a poor credit score.

Learn more: How to Buy a Car With Low Monthly Car Payments

Frequently Asked Questions

What if I Cannot Afford a Down Payment for my New or Used Car?

Zero Down Car Loans

It's not always possible for everyone with bad credit to put up some form of down payment. In fact, in recent years, new vehicle inventory costs have increased regularly.

But, Americans still find themselves with paychecks that don't match the increasing prices of cars. This only further exacerbates the issue of trying to buy a car with bad credit and having no money to put down.

Victims of a car accident, for example, might find themselves without a down payment immediately after their car has been totaled by the insurance company. The insurance company might give them a small payoff to replace the car but that car could be 10 years old and as such the payoff is just not nearly enough to search for cheap down payment cars.

Credit Score Needed for Zero Down Car Loan

Financing a car with bad credit and having no money down is nobody’s first option. But it is needed now and again. You typically need to have an acceptable credit score or have a down payment of at least $500-$1000 to get approved.

What Do Lenders Look at to Get Approved?

  • Credit score
  • Job history
  • Your income level

Be sure to submit an accurate application. An accurate application will ensure a lender will be able to verify the likelihood that you will make repayments regularly (which will ultimately improve your credit score).

How Do I Improve My Credit Score for a 0 Down Car Loan?

We understand! All it takes is one simple mistake for your credit score to be severely compromised. Once your credit score is compromised it can become even more challenging to fix it.

Regular lenders look at the botched mark on your score and decide whether or not you are worth the risk. Think of it like trying to get your first job.

Applying for your first job requires a resume and on your resume, you usually need to have job history but if you've never had a job and you have no job history to write about you can still get a job but you're going to start off at minimum wage and work to prove you're trustworthy. Zero down lenders look at applicants in a similar way.

Lenders are ok with people who have no job history because there's still a profit to be made loaning to people who have found themselves in a bad financial situation or simply don’t have the money to put into a down payment.

As the person taking out the loan you get the opportunity to prove that a blip or a temporary setback was just that. You have the opportunity to make regular payments on something rather than nothing and therefore slowly but surely rebuild your credit score.

That is why lenders offer no money down car loans. They make it easier for people to get loans despite poor credit or not being able to make a down payment. You may be asking yourself, “What’s the catch with the zero down Car loan?”

Well, before we get into this it is important to understand how they work. Here are some of the best practices and things to look for when you seek out a loan for a new car with no down payment.

Learn more: How to Improve Credit Score When You Have Bad Credit

How No Money Down Car Loans Work

car loans with bad credit no money downCar dealers use the upfront payment to continue operating and financing other loans. But due to the rising demand and need for car loans with bad credit and no money down, lenders are taking on additional risks.

To be able to carry some of the risks of no money down loans they need to make adjustments.

They still want rather you take the down payment option if you can afford it. The total payment of the car will be higher if you choose to not make a down payment. The money you saved at the beginning will be charged later. In the long run, the 0 down loan is actually more expensive than a loan where you were able to make the down payment.

In addition to this, the loan company could take away any repair warranties that would otherwise be offered with a car. However, no money down car loans are still an attractive option for a short-term loan.

Different Types of Car Shoppers

The Impulsive No Money Down Car Buyer

An impulsive buyer will choose a no money down car loan even if it is not the best option for the situation. This is a viable option for people who cannot make a large down payment. As an impulsive buyer, zero down car loans are an easy option. They have their credit card on hand and they see the car that they want to purchase. They may choose this option because the offer is available for a limited amount of time. It becomes the opportunity of a lifetime but can later cause financial stress.

The Car Buyer with a Bad Credit Score

There is another type of buyer who opts for the zero down car loans and these are the buyers with bad credit scores. Such a buyer has a hard time getting a car loan and they simply do not have the upfront cash to make a down payment.

There are some unscrupulous companies who take advantage of this. They might raise their prices and charge exorbitant amounts of money. They may offer zero down loan but then increase the monthly payments. Often, by the time the buyer notices the cost of the loan has been increased it's too late to make any changes.

Car dealers know that customers who make a down payment are more committed to paying off the loan given the fact that they have already invested a large sum of money.

Many car dealers and financing companies do understand your financial requirements. The bad credit car loan industry is getting competitive so companies know they need to offer attractive deals. They understand that they need to attract customers and that they will get a bigger return on that investment later.

Learn More: How to Get Fast Financing For a Car with Bad Credit

How to Find Companies that Offer 0 Down Car Loans

It is not easy for customers who have bad credit ratings to get zero down car loans. However, it is still possible if you know where to look. It might take some time and some comparison shopping before you can make your decision. But the time is well worth it because you will save thousands of dollars in the long run. This is where professional help comes into play. We can help provide you with a quick and safe no money down car. We serve as a one-stop loan shop for your car loan needs.

We offer a nationwide network of qualified lenders and car dealers who are always ready to serve. It’s all credit history and the public with older customers want heavy lifting for. We negotiate on the customer’s behalf hard to get more value and to help customers save more money in both the long-term. We help our customers get their own cars while avoiding huge loan fees. Also, we help our customers build their credit score. We are here to help you get started so that you can get better loans with low interest rates.

Car Dealerships Bad Credit No Money Down: Late Fees

low down payment carsIf you were to make a down payment at the very beginning of your car purchase, the buyer could then sell the vehicle to you for a price that would allow you to pay off the loan. But when you are paying for a zero down auto loan this is typically not the case. The car could start falling apart and then you would have no repair warranties. As the owner, you wouldn’t be able to afford to give up the car because you'd still be making payments.

If making a down payment is truly out of the question then it is better to at least get a good rental agreement than to spiral into debt.

Some new car lease deals can supply you with a car that offers more affordable payments and then at the end of the lease you could get the option to buy the car and get a better auto loan to pay off whatever is remaining.

Many of these deals are made for your convenience. An impulsive decision to purchase a car without actually planning ahead of time might cause you to get yourself involved in a situation that you don’t necessarily need or one that can prove harmful to your overall budget and credit score.

It is for this reason and many more that it is imperative to work with a professional who can help guide you through these waters mitigate any potential mistakes that you might make out of an emotional or impulsive decision.

Tips for Choosing the Right 0 Down Car Loan for You

Before you decide to purchase this type of car loan it is critical that you take into consideration your current financial situation. If you have a below average credit rating the first step you need to make is to check your credit report to verify whether or not you truly do qualify for a car loan.

Even if your credit is less-than-perfect you can get financing through multiple lenders. Now, the worse off your credit score is, the higher the interest rate is going to be but you still may qualify for low down payment cars. This is an industry standard and it reflects the risk that the lender is taking by lending to somebody with a subpar credit score.

Now, as you continue to make payments you are giving yourself the opportunity to reduce that interest rate in the future by increasing your current credit score. It might be harder to get financing with bad credit if you don’t have a down payment but it certainly isn’t impossible. It is simply important to understand that this is not something you should turn to unless you absolutely have no other resources or options at your disposal.

Again, making any type of small down payment as a show of good faith can work wonders for your overall loan terms and your interest rate.

What kind of Credit Score Do You Need?

Many dealers and lenders are using a new credit score report that might be slightly different than the one you have seen in the past.

Always look over your credit score and correct any problems on it before you start shopping for a vehicle. Make sure that you have proof of residency and proof of income when you apply.

Sell an Older Car

If you are able to, sell your old car yourself. Even if your car has mechanical problems or is in bad condition, you might be able to trade in that vehicle to help reduce the down payment required for your financing terms. Obviously, this doesn’t necessarily apply to everyone.

Someone who recently got into a car accident where his car was totaled doesn’t have much to trade but if you have even a clunker parked in your driveway, you might be able to sell that to the lender in exchange for a lower down payment or as some form of collateral in your zero down car loan situation.

Learn More: How to Buy a New Or Used Car Without Getting Ripped Off!

Cash Rebates for Car Dealerships on No Credit Check No Down Payment

You might find that at certain times of the year different auto manufacturers or dealers provide you with a cash rebate on a very specific model. This is designed to increase sales. But it is also a wonderful way to make a down payment on a car without having to take any money out of your pocket. Some dealers might provide discounts on new car leases and you can take that cash rebate money and simply apply it to your down payment during the negotiation process.

No matter how you choose your no money down car loan options, you should still do your homework. Here are some tips that can help you save money in the long run:

Explore Options: Cars for $500 Down Payment

cars for 500 down payment near meAll things being equal, making a down payment is still the best option. Even if you can only make a small amount of your down payment, this will help you to save a lot of money in the long run. Remember that it is in the interest of the car dealer or the financing company to receive a low down payment because it mitigates the risk they are assuming by lending you money. We can help you find used cars with no credit check & a low down payment.

They are even willing to give more attractive offers to customers who opt to invest any lump of money.

If customers do want to go zero down car loans they should expect certain extra costs ahead of time so they can better integrate these costs into their budget. They could make the difference of $1000 in the long run if not more. This is money that could be easily used to pay down the mortgage or put into the college tuition.

If you really want to save money long-term you might consider borrowing money for a down payment. Any type of down payment you make will result in lower monthly payments. It is much easier to budget when you have lower monthly payments and you won’t be worried about it all the time. It becomes decidedly easier to manage lower monthly payments whether you have a good credit score or bad credit score.

In any case, putting some amount of money down will lower the interest rates as well which impacts the overall amount you have to pay long-term and short-term. Even with the bad credit rating, we can help you to get better deals.

We can help you to negotiate and we will do all the hard work on your behalf to lower your interest rates. If this is the option you choose then your only concern at this point is coming up with the down payment.

Learn more: How to Get a Bad Credit Auto Loan without Using a Cosigner?

Check the Documents: Buy Now Pay Later No Credit Check No Down Payment

Whether you are making a down payment or not, you need to always verify the details. Check the final interest rates and the deductions. If you look over a contract carefully it could make a huge difference in your total payments. Once you sign everything is binding and you have to be careful not to miss any details. Double check the final interest rates and do not sign for the very first loan that seems appealing.

It is well worth the time to do some homework and a little bit of investigative work for you to settle on the rates you are provided. It is worth remembering that once you have signed, the loan is irreversible. With that signature, you have agreed to pay the amount specified.

The only way to truly avoid the stress is to check out all the documents and run all the numbers thoroughly. Run them personally to check for errors before you sign anything.

Beware of Test Drives

bad credit no money down car dealerships near meTest drives will encourage you to buy a car. After each test drive, you might feel some form of attachment to the car. The salesperson will take extra steps to encourage you to try a car and take it out on the road. Avoid this. Look at the numbers first. This will help you to remain rational in making your decision. This rule applies whether you are looking at a regular loan or a no down payment car loan.

Many people get very excited to try a car especially if it is their first one. This excitement can encourage you to make a bad decision. Sales pitches are there to help you with your heartstrings not to give you the best financial deal.

Remember that salespeople will give you a long list of benefits and cost savings and they might even compare the deals that their company has to offer with other company deals to try and win you over. They will work very hard to make sure that you do not leave that office without buying something. The reason for this is not because they actually care about you getting that perfect car. It is simply because they get a commission based on every sale they make. Every time you walk out that door without having purchased a vehicle that’s a few thousand dollars that they miss out on. Do not let their push for a sale in order to make a bigger profit push you into making the wrong decision.

A test drive in a sales pitch is very likely to impact your decision. That is why it is important to define your needs before you start looking. Having someone to help you negotiate will help you maintain a rational frame of mind. We are always ready to assist you with your auto loan needs.

If you are searching for zero down car loans we can help you to make an informed decision. Our application takes a matter of minutes you could reply in as little as 60 seconds. Contact us today to find out more about our no money down car loans.

You May Also Like: The 2018 Used Car Buying Guide