Get a Car with No Money Down

Get a Car with No Money Down

Buying a car with no money down is one of the best things that your car buying experience can include. Obviously, something this good is not always easy to get. Just like everyone doesn’t have an extra bag of cash lying around the house to get a new (or even used) car, not everyone is qualified to get a car with no money down. However, this general perception often lets people give up on considering a no money down loan to get a car where they could have gotten it. The best way to deal with this issue is seeing if you are entitled to apply for no money down car loan. You can buy a car without putting any money down, just be sure of a few things.

Keeping (a good) Score

It’s a no brainer that a good score is necessary for getting a zero down auto loan. To put it into numbers, you need a credit score of approximately 670 to qualify for a no money down car loan. If you are falling short of this requirement, be sure to boost your score by at least 20 points before you apply for the loan. Making your credit payments on time and watching your credit limit goes a long way in getting you the lucrative zero down loan.

Car Assumption

One great way of getting a car for no money down is getting it from someone who wants to get out of a car loan. You can simply assume their car loan and start making the monthly payments as you take possession of the car right away. Be sure to involve the lender in the process so everything is handled properly from a legal point of view. Obviously, you will have to qualify for the car loan that you are assuming.

Find a Co-signer

If you don’t have the required level of credit score or a clean credit history, that doesn’t mean the doors for no money down auto loan are closed for you. You can have bad (or no) credit and still get the loan if you can find a co-signer. The co-signer will of course need to have good credit to help you secure the loan. Make sure that the co-signer understands the co-signer agreement, as he/she will be as responsible for the car loan as you.

Pros of No Money Down Car Loan

  • No money down (obviously)
  • Use any money you have to make the monthly payments
  • The loan is an indication that your credit score is favorable

Cons of No Money Down Car Loan

  • You may have to make some upfront payment (certain fees etc.) that does not go towards your loan principal
  • Relatively high interest rate
  • Relatively longer tenure of loan repayment

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