If you live in the Dallas-Fort Worth Metroplex, you know how difficult it can be to find the right dealership. From Harry Hines Boulevard to Murdock Road, where do you start when it comes to finding a low down payment car lot?
Low Down Payment Car Lots in Dallas, TX
Believe it or not, finding a low down payment car lot is fairly simple – you don’t have to limit yourself to a buy here pay here used car lot. While these types of lots are great if you need a vehicle fast and aren’t too concerned about boosting your credit, the types of cars sold on these lots aren’t very new and typically come with higher mileage. Plus, the down payment requirements are generally high in order to cover the cost of the vehicle. This doesn’t mean they’re necessarily bad cars, it just means you could end up paying more to keep one going.
So, what’s your other option? The answer is a subprime lender. You may be hesitant about financing through a subprime lender because they look at your credit score, but that’s not all they use to determine if you qualify. They also look at areas such as your income, employment, and residence stability, to name a few.
As for a down payment requirement, it’s fairly reasonable. Although the amount can vary, the typical subprime lender asks for a minimum down payment of $1,000 or 10 percent of the vehicle’s selling price, whichever is less. In addition, these lenders don’t finance cars under $5,000. So, if you find a good, but affordable, vehicle, you could end up needing just $500 (10 percent of $5,000) to cover the down payment requirement.
Unfortunately, because of the $5,000 minimum finance requirement, finding a car with a down payment that's less than $500 probably isn’t possible. But, if you’re short on cash and worry you won’t have the 10 percent needed for a down payment, you could consider using your current vehicle as a trade-in. As long as there’s no negative equity, subprime lenders generally accept a trade-in as all or part of a down payment.
Looking for a Dealer to Work With?
If you’re tight on money, and worry about providing a down payment on your next car, you have options available. On the flip side, if you have the cash but not the credit to qualify for financing, Drivers Lane wants to help you out.
We specialize in connecting car buyers in Dallas and the rest of the US to the right dealerships, the ones that know how to work through unique credit situations. Fill out our simple, free, and secure auto loan request form and we'll work to match you to a dealer in your area. Get started today!