Buying a zero down car can be a great way to save money because you don't need a down payment, right? Wrong! Actually, making a down payment when financing a vehicle can save you hundreds in the long run – zero down doesn’t do that. Don't be discouraged if you're looking for a no money down car loan near Ashburn, Virginia, Drivers Lane works with dealers in and around Ashburn that want to help.
Buying Zero Down Doesn't Save You Money
Zero down auto loans sound like a great thing – and they can be – if you're already qualified for that type of loan.
The truth is that many people just aren't qualified. In order to qualify for these types of loans, you typically need excellent credit.
Once you qualify, you finance the entire price of the vehicle – which means paying interest charges on the entire amount. If you were to make a down payment, you’d be financing less, which saves you money in interest charges over the term of your loan.
Opt For Subprime Over BHPH
If your credit is suffering, you may think your only option is to visit a buy here pay here dealership (BHPH), where they don't run your credit. Though this is an option for some people, you typically only find older, high mileage cars at BHPH lots – and they come with higher interest rates, too.
There's another option for you, though: a subprime lender. These lenders work indirectly through special finance dealers – with several around the Ashburn, VA area – and they work with people whose credit is less than perfect. Plus, the good news is that these lenders don't typically require a large down payment. Generally, most subprime lenders require a down payment of $1,000 or 10 percent of the vehicle selling price, whichever is less.
There are a few other requirements you have to meet other than a down payment in order to qualify for a subprime loan. Though the specifics vary by lender, they typically include:
- Proof of income – a recent computer-generated check stub showing year-to-date income
- Proof of residence – a recent utility bill in your name at the address listed on your application
- Personal references – a list of six to eight references complete with names, addresses, and phone numbers
- Proof of a working phone – must be a land line or contract cell phone in your name, and prepaid phones don't qualify
- A valid driver's license
If you assemble all your documents ahead of time, request your credit reports and scores, and prepare a budget before you go to a dealership, buying a car with bad credit can be smooth sailing.
Take the Stress Out of the Search
If you don't have excellent credit, Drivers Lane is a great place to start. You don't have to go all the way to Alexandria to find the vehicle you need. We have a number of dealers closer to home that have the lenders available to help people who struggle with credit issues. For instance, you could fill out our easy online auto loan request form from the comfort of your own home, and be matched with a dealership in Leesburg or Sterling. Then, all you have to do is prepare to meet with the finance manager. Get started today!