subject: No Down Payment Car Loan Financing [print this page] With no money down, getting a bad credit car loan is not going to be easy. A few things should be kept in mind while buying a car without any cash down payment. A car dealer will always want to get immediate payment on selling a car. One reason for this is that instant profit can be gained. On the other hand, the lender will always want to lower the amount of loan being provided to you. But if he is going to earn a high rate of interest on the loan amount, sometimes he really does not mind! This is what you need to take advantage of.
Find details of lending institutions
Most car dealers will be more than happy to get ready cash from you on a sale made by them. But this is not possible as all buyers are not able to pay instant cash and this is when a loan becomes a necessity. A loan is offered even with a bad credit rating, but you should invest in research on details of lending institutions providing car loans even on bad credit and the rates of interest applicable.
Not all financial companies will provide no money down bad credit car loans . With a little bit of research you will be able to get information on the kind of financial institutions that you need to investigate. Many car dealers may also offer finance on conditions specified in stringent fine print, but this could prove to be an expensive affair for you. Some people are under the impression that car loans have to be taken from car dealers only which is not necessarily the case.
Try avoiding getting a car loan from the car dealer
Don't be under the impression that a bank will not give you a loan because of our credit rating. In fact, they are the best people to finance you in case you are in financial distress. Car dealers may try to avail a loan for you from financial institutions and get a particular rate approved. But be aware, since they could inform you about a higher rate of interest. Difference in the interest rate is earned by the car dealer, from your pocket!
Avoiding the car dealer car loan in any circumstance is the best thing you could do. With no down payment you are still in a position to buy a car and that too at an affordable rate of interest. You should try to keep the car dealer out of the picture completely as far a availing a car loan is concerned. By doing this you can purchase a car of your dreams.
