Can I Really Get A No Money Down Car Loan?

Buying a car with zero down payment sounds like a great deal, but is it really possible? The short answer is yes, but there are some cute things that you need to know before signing ain’t no money down auto loan. 

In this guy will break down: 

• How is zero down carbons work?
• Who qualifies for them?
• Hidden dealership tricks to watch out for
• Best place to find no money down financing

How do zero down car loans work?

0 car loan but you finance the car 100% of the cars cost, meaning you don’t have to pay anything upfront.

• Higher monthly payments since you financing the full amount, expect to have a higher monthly payment.
• Good credit helps some lenders require or excellent credit scores to qualify.
• Interest rate may be higher lenders take on more risk, so they may charge higher interest rate rates.
• Trade-in or rebates can help some buyers use a trade-in vehicle or manufacturer rebate to lower the cost.

Pro tip: while zero down financing is possible, putting some money down even $500 to $1000 down for the car can get you a better loan term and save your money overtime.

Who qualifies for zero down car loan?

Not everybody gets approved for no money down car financing, but you’re more likely to qualify if you.

• Have a good credit score of 650+ a higher credit score makes lenders more comfortable approving you for full financing.
• Have a stable income lenders, want proof that you can handle the monthly payment.
• Have a strong payment history if you’ve made it on time payments on your past auto loans, it boost your chances.
• Choosing the right lender, some lender specialize in zero down payment financing, even if you have bad credit.

Bad credit? No problem. Some lenders offer zero down auto loans for bad credit, but they may require higher interest rates or even a cosigner.

Hidden dealership tricks to watch out for

While dealerships advertise zero down payment deals, there are some catches that you should be aware of.

• Zero down doesn’t mean no fees. You might still have to pay taxes, title, and registration out front.
• Higher interest rates, some dealers increase the interest rates to offset the risk.
• Shorter loan terms is there a down loan might come with a higher monthly payment due to the short loan length.
• You might be dealing with limited car selection. Some dealerships only allow specific models to qualify for the zero down financing.

What does this mean? Always read the fine print before you agree to any zero down loan offer!

Best lenders for no money down cars

If you want to finance a car with zero down, here are the best option

Credit unions and banks

• Credit unions offer better loan terms and dealerships.
• You need a good credit score for most of the best rates.

Best for: buyers with good credit scores, looking for lower interest rates.

Online auto loan marketplaces

• Compare multiple no down payment lenders at once.
• Some options for bad credit buyers.

Best for: anyone wanting to compare multiple financing offers.

Manufacturers financing promotions

• Auto makers like Toyota, Ford, and Honda occasionally offer zero down financing deals.
• Must credit and income require requirements to qualify.

Best for: new car buyers with strong credit.

How to get a approved for zero down car loan 

If you want to increase the chances of approval for a car, follow these steps. 

• Check your credit score. The higher score is the better the long-term will be.
• Get preapproved on online compare lenders before you head to the dealer.
• Bring proof of income, paystub’s or bank statements can strengthen your application.
• Negotiate the loan terms go just accept the first offer shop around for the best deal.
• Consider a cosigner a cosigner with good credit can also help you qualify for a zero down loan.

Final thoughts

Yes, zero down car loans are real, but they come with a higher monthly payment and interest rates. If you’re considering a no money down deal, make sure you.

• Compare multiple lenders
• Understand dealership, tricks
• Check your credit score 1st
• Negotiate the best financing terms

If you’re ready to see if you qualify for a zero down auto loan, check your eligibility now!