When you are looking to buy a car and have limited funds, it might seem like an uphill battle to get approved for a car loan. When you have damaged credit, it can make this issue even worse.
Trying to get a zero down car loan with bad credit might be possible, but I will tell you this: you may not like the interest rate. Typically, car buyers who are struggling with their credit will need to purchase a used vehicle, and if you combine the reduced lifespan of the vehicle with a high interest rate and no down payment, you won't really be getting your money's worth.
How a Down Payment Helps Bad Credit Car Buyers
Down payments are awesome. They reassure the lender that you are highly invested in the loan agreement, and since you will be borrowing less money, it reduces how much your monthly car note is. And, depending on the amount you put down, you could even have instant equity in your vehicle.
Also, your interest rate could be lowered as well. With a large enough down payment, a lender may have the ability to reduce the rate because of your participation in the loan and the lower borrowing amount.
And don't be discouraged if you have little to no money down to put on a vehicle purchase. Did you know that your current vehicle's value could be used towards your next vehicle purchase? Well, if you didn't, it can. And it might just make all the difference.
All of these things will lead to a better value for you in the long run.
Make the Most of What You Have
At Drivers Lane, we have helped bad credit car buyers like you get approved for car loans with little to no money down. All you need to do is complete the fast, secure and obligation free online application. Don't wait any longer to get the car you need. Let us help you today!
