You most likely aren't going to be able to get a bad credit car loan with no money down. Almost all poor credit auto lenders require a down payment, but making one can help you save money in the long run, and you have options when coming up with one.

Meeting the Down Payment Requirement

Can I Get a Bad Credit Car Loan With No Money Down? Bad credit car buyers should look into two types of lenders: subprime lenders that work through special finance dealerships, and buy here pay here (BHPH) dealers that offer loans in-house.

Depending on the type of lender you get financed with and the vehicle you choose, the down payment requirement could be as little as $500 or well over $2,000. Subprime lenders typically require a minimum of $1,000 or 10 percent of the vehicle’s selling price, whichever is less. BHPH dealerships, however, may require more money down. It's a good idea to save up ahead of time so you're prepared.

You should also know that cash isn't the only way to come up with a down payment. If you have a trade-in that has equity, you can use it to satisfy the down payment requirement.

If your trade equity meets the minimum required, it could feel like you’re not making a down payment at all. If the trade equity isn’t enough, or you want to make the overall cost of the loan lower, you can combine cash on top of the trade-in equity, too.

How a Larger Down Payment Can Help

While you can put the minimum amount down and still get approved, making a larger down payment helps you save even more money in the long run.

Let’s say you’re financing a used 2015 Honda Accord that cost $14,000 for 60 months with an interest rate of 15 percent. Here’s how different down payment amounts make the overall cost of your auto loan cheaper:

 Down Payment Amount 

 Monthly Payment 

 Total Interest Paid 

$1,000 (typical minimum)



$1,400 (10%)



$2,100 (15%)



$2,800 (20%)



As you can see, the more money you put down, the lower the overall cost of the loan is.

Ready to Find Auto Financing?

If you’ve got a down payment saved up, or you recently paid your current vehicle off, and are ready to get a new car, we want to help you get started. Drivers Lane can match you with one of the many dealerships in our nationwide network that specializes in bad credit auto loans.

We can quickly connect you with a dealer in your area that works with unique credit situations for free. Our service also comes with no obligations. Go ahead and fill out our simple and secure car loan request form to get started today!