When you are in the market for a vehicle, lenders usually require a down payment towards the future purchase. Unfortunately for many people, saving up thousands of dollars is not something everyone can possibly do and are looking for something more affordable like 99 dollars. There may be other obligations that your income has to go to whether it is school loans, other bills, or household essentials.
Get to Know the Extent of your Options
The great news is there are programs to help with these kinds of situations; such as no money down loan. Another option that you can consider is having a trade in vehicle. A car, truck or SUV that is no longer necessary for you can be used as collateral, and it can be used towards your monthly payments. One more way of helping with an auto loan is to have someone who you can trust, co-sign on the loan with you. With a co-signer, this means that the person takes on just as much responsibility as you do towards the automobile.
Why the Money Down Matters
Lenders usually look for an amount between 10-20% for money down. Having $99 down on a car loan doesn't give you much advantage with the car, truck, or SUV; but it helps more than having no down payment available. The importance of this is because:
- You are making the commitment to an investment
- You won't have much negative equity on your car worth
- You are lowering your monthly payments.
With the pros of having a good amount down, your payments can help be more convenient for your source of income. Consider budgeting if you are tight on cash. Budgeting will give you a good idea of how much you need or what car you can afford. When you have an idea of the budget of your car, it can aid you in the areas of where you should negotiate with your seller whether it is the price, interest rates, down payments or length of term.
Having $500 or $99 cash down at a car dealership is not something that most people can afford. If you find that you really need to get into a vehicle as soon as possible, and that you can only come up with less than one hundred available, apply today with DriversLane.com. We are here to ensure that you get the best financing experience possible-even with bad credit. Our quick and easy application allows you to have the resource to a professional.