The Easiest Way to Get No Down Payment Car Loans

No Down payment car loan 

Having a car nowadays is not a luxury anymore. It’s a necessity these days. All of us have to travel to our offices or take our kids to school or any of the thousand personal things you wish to do. As the cities continue to expand nowadays, having a four-wheeler is utmost priority for any salaried person. Now, what if you need to buy a car right now but do not have a down payment immediately? 

The answer for no down payment car loan may be tricky but it’s possible entirely. The real question is if you should buy a car without down payment and whether or not should you consider buying a car in the first place. Below we will discuss the merits and demerits of the same and would try to pinpoint everything you need to know before the purchase – 

1. Analyze your financial stability – 

The first step is to check where you stand in terms of financial metrics. Check your credit report and verify your fixed income. Try not to change houses every now and then and stay at one place for at least one year. This will bring you in a good light and will give you a good position to bargain with the car dealer. Some car dealers don’t let you buy a vehicle without down payment if you have a bad credit score. Having a steady job also makes you a good candidate as you have a regular income. But you should try to avoid car loan no down payment. 

2. Look around and bargain – 

Some dealers try to use tactics and try to sell you a car at high rate of interest. But do not be fooled. You have no need to buy a car from the first dealer you meet. You can shop around and have looked in the market. Interact with other dealers. You might be pressured to buy an extended warranty or some useless accessories or no credit car loans. 

3. Check with banks and other institutional lenders - 

Try to approach banks and other institutional lenders as well. Get your credit score checked with them if you qualify for a cash advance or an auto loan directly from them. 

4. Don’t Rush into the decision - 

There are definitely some advantages of buying a car loan with down payment as the rate of interest will be lower and you might not want to pay much more than the car actually costs. So you can consider waiting for a few months to collect the required amount so paying off the loan would not be a burden. The value of car also depreciates every year by 20 percent so by the time you are still paying the car loan, its present-day value is falling. 

So it’s better to buy the car with at least a small down payment versus no down payment. 

5. Option of Loan Cosigner – 

Auto loans with no down payment can be very expensive. If you have given thought to buy a car immediately and cannot pay the down payment, you might want to consider the option of a loan cosigner. It can be a close friend or a family member but be careful, once you buy the car with a cosigner, you will be a secondary owner and you missing the deadline will affect his credit score too. Getting into arguments with your cosigner over the ownership is not a very happy experience. Make sure you make all the payments on time and choose the cosigner smartly.