Do you want to buy a car, but don’t have a lot of money? You can still enjoy the opportunity to get behind the seat of a vehicle, thanks to a car loan for $0 down. When you get a $0 down car loan, you are able to buy a car that you would otherwise be unable to.
What Is a Down Payment
A down payment is a specific dollar amount you pay a lender in order to receive a loan. For instance, if you are looking to buy a car for $25,000 and a loan demands 10% down, the required down payment will be $2,500. The average down payment is usually between 9% and 12%. Asking for a down payment on a vehicle is standard practice, yet you can also pay no money down, if you qualify for it. Another alternative to paying money for a down payment is to trade in your current vehicle. This allows for the value of your car to get applied towards the down payment.
Is a Down Payment or Zero-Down Preferred
Depending on your situation, a down payment may be a better choice, or zero-down could be best for you. The benefit of paying zero-down is that you don’t have to pay a large sum of money to get a vehicle. The flip side to this is that you will probably see your car depreciate before you are done paying off the car loan. Also, the interest rate, known as APR, will generally be higher. This is because a dealership will look at a zero-down loan as riskier. In a perfect world, you would front the money for a down payment. However, many today don’t have lots of cash on hand to put towards a car, so a car loan is the best choice.
How Can Someone Qualify For a Zero-Down Loan
For you to qualify for a zero-down loan, your car dealer will review your financial history. They want to make sure you have a track record of paying money back quickly and on time. Your credit score is the first thing they will look at. When they see you have a higher credit score, such as anything above 600, you will likely qualify to get a zero-down car loan. Besides your credit history, a dealership will also take a look at how much money you have left over every month after you pay your bills. They will also look at what car you want to get. You might not get the vehicle of your dreams with a zero-down loan, but you will be able to get a decent car that will serve you well.
Can Someone With Bad Credit Quality
Yes! While you may not receive the same low annual percentage rate, you are still able to purchase a vehicle affordably.
Canada East Rides helps you get into a car when you otherwise would have trouble doing so. We are affiliated with dealerships that will work with you, no matter what your credit is. In fact, we can help you increase your credit score. We can help you get approved for a zero-down car loan and get you driving off the lot with your newly-purchased vehicle. Contact us today to apply.