subject: No Down Payment Car Loans Available to Consumers with Bad Credit [print this page] No Down Payment Car Loans Available to Consumers with Bad Credit
When you have bad credit, you can expect bank after bank to turn you down for a car loan. However, having poor or bad credit is not necessarily a deal breaker because there are no down payment car loans available even for people with less than stellar credit.
Having bad or no credit should not stop you from obtaining a loan for a vehicle. No down payment car loans are readily available through different lenders and dealerships. If you happen to be living on a fixed income or have a very poor credit history, these no down payment car loans provide an excellent opportunity to buy a new car. This type of finance option offers you the chance to borrow money without having to put any collateral up front. It does however, help your situation greatly if you happen to have a trade-in car because the majority of lenders out there who issue no down payment car loans will accept it as being equal to cash down.
An auto loan with no down payment will be for the exact amount of money you need to buy your next car. Having a trade-in will help to drop the amount of your monthly payments for the life of the loan. These no down payment car loans are often arranged by dealerships to help people with bad credit buy cars. This means that you should take your time when looking for one of these no down payment car loans because some dealers will jack the prices up on the cars on the lot as a way to get more money from unsuspecting customers. Consider asking friends and family members for any recommendations they may have for dealers in your area who do not take part in price gouging and that offer these loans requiring no down payments.
You can locate lenders that offer no down payment car loans by using the Internet. There are many lenders in operation today offering this type of financing so you will have to do your homework so that you can locate the deal best suited to you. Considering the very poor state of the economy in the US, more of these car loans are becoming available. Plus, many people who have never had bad credit before in their lives are suddenly finding themselves being turned down for loans because their credit reports took a beating the past few months.
Something worth mentioning here is the fact that some consumers in credit trouble are fortunate enough to have someone available who is willing to lend them money. Being able to borrow something like $1000 from a family member or friend will allow this type of person to get a loan for a car because they use the personal loan as a down payment. If you have this option available to you, consider using it if you do not want to apply for a car loan that features no money down.
You can expect to pay a higher rate of interest with the no down payment car loans and your monthly payment amounts may also be higher than normal. But, when you are in need of a car and you have bad credit, you should be grateful that there are lenders out there willing to give you the money you need.
