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Zero Down Car Loans and Bad Credit
If 0 down loans are what you are looking for, we can match you with a lender who can give you an affordable interest rate even if the financing is for a bad credit auto loan.
Valley Auto Loans specializes in quickly finding you a bad credit auto loan without an initial payment and monthly payments that fit your budget.
Our smartphone application makes applying online fast and easy!
Finding the Correct Loan For Your New Vehicle
Using an auto loan broker like Valley Auto Loans means your zero down car loan application is reviewed by many of our financial lenders.
We do our best to see you are matched with a lender that is willing to meet your needs and low-income budget for zero down car deals.
Finding the best 0 down payment car loan for your new car is our specialty.
You are offered the correct auto loan terms for your request for cars with no down payment without having your credit checked over and over by different companies.
If you shop at car dealers who offer credit and sales options, you will probably not have a choice when it comes to your loan financing terms.
You will most likely have to take what they offer to get the no down payment deal.
Shopping for a used car with bad credit and no money down? No problem.
Buying a car with bad credit and no money down is one thing.
However, you will also want an auto loan lender who can get you cheap car payments even with bad credit when it comes to 0 down cars.
Some car dealers charge some of the highest interest rates on low credit score auto loans because bad credit loans are not their specialty.
At Valley Auto Loans, we believe that you should shop for a 0 down car loan or 0 down car lease the same way you would if you were looking for a good deal on a new car.
Choose your vehicle loan from as many offers as you can and select the best one.
Like a car loan broker, we will do the work for you. We will review your application with many of our select lenders who will offer you their best no down payment car loans with easy terms and best monthly car payments.
Then you decide if it is the loan you want for your car with no down payment. It’s that simple.
Our Application Process For 0 Money Down Car Loans
- Fill out an application online and enter the amount you desire for a down payment. (For 0 Down Cars, put a zero)
- Your application is reviewed by lenders who fit your requirements, and they respond directly to you with a loan offer for your no down payment car loan request.
- You can review the loan offer and decide if you like the terms of the offer.
There is no obligation to accept the offer. We have 100% application acceptance, and we never charge an application fee. Most of our lenders base your 0 down payment car loan on your ability to pay the loan back and do not rely on just your credit score.
This allows us to have a higher success rate in finding you the best zero down car loan for your situation. Our application will enable you to apply for new or used car financing with no money down as well as auto leasing and rent to own options.
Compare your options to finance or lease your next vehicle.
Zero Down Car Loan Advantages
The first advantage a person thinks of when looking at a Zero Down Car Loan is that they will not have to put up any money to buy a car.
The truth is that most car dealers who advertise “0 Down Auto Loans” require you to qualify for their cars with no down payment program. This means you will need a high credit rating and good auto loan history.
Most who qualify for a zero down car loan could afford a down payment.
Those who cannot probably won’t qualify for the better rates, but you could still get a loan without the down payment if you are willing to pay a higher APR.
Many who apply for a no money down car loan find themselves in need of a car as soon as possible. They have lost their transportation and don’t have time to save up a down payment.
So what are the zero down car loan advantages?
With 0 down payment cars, the down payment one would typically pay is instead structured into the car loan. Outwardly this seems to be more expensive over time, but remember that you are borrowing money for the car and the down payment.
Other types of the dealer offered no down payment car loans are through “trade equity” and “vehicle rebates” (new automobiles).
Use Rebates for Zero Down Car Deals
The dealer can apply dealer or customer rebates to the 0 down payment car loan as a down payment replacement. This will reduce the amount of the loan and satisfy the lender looking for a down payment.
A fact of nature is that a new car loses 20% to 25% of its value practically the minute you drive the vehicle off the lot. If the no money down car loan was for the full price of the car, the customer would be paying for a loan that is 20% to 25% more than the value of the vehicle.
With a down payment, either from a trade-in or cash-back rebate, the amount of the loan is more in line with the actual value of the car.
This depreciation value is why lenders request a minimum down payment amount of 20%.
Zero Down Car Dealer Disadvantages
Rolling some of the down payment into the loan doesn’t seem so bad, in fact, it seems like a good deal if you need a car fast.
However, there are 0 down cars offered at car dealer lots that can cost the buyer much more in the long run.
Car dealer scams presented to you by dealerships when working on the funding, do not seem to be car scams at all.
Many people do not understand the intricacies of interest rates and their impact on a zero down car financing loan. The problem comes later when you are trying to pay off the loan.
Some Car Lots work no down payment scams all the time.
Some services will convince the buyer that driving a car off the lot in exchange for nothing is a great deal.
People can get the impression that no money down cars are easier to get, and all they have to do is qualify for financing. These scams are usually aimed at people with good credit who could afford a down payment.
Even a consumer with good credit will consider a car finance deal like this to get no money down vehicles without saving a down payment.
If they used a car payment calculator to check the auto financing offer, they would see how much money they stand to lose.
0 Down Cars From Dealer Car Lots: Overview
No down payment car advertisements on the television, the internet, radio, and newspapers promise consumers that they can get a new car with zero down payment or no money down.
What about Bad Credit Zero Down Car Lots?
People with bad credit can find themselves in need of a car when they least expect it.
Their old car breaks down and can’t be fixed or will cost more than it is worth. It could also be that they lost a car in a recent auto accident.
No money down bad credit car loans can seem like a good answer, but how easy is it to get a car with no money down and bad credit?
Many are buying a car for the first time and need a car to get to a new job, and no money down car loans will save them from having to come up with a down payment, but they have not built any credit history, so they have a low credit rating.
Americans simply don’t have that much money in liquid assets, and they do not have the money for a down payment and need transportation.
For this reason, many people find themselves going to Bad Credit No Money Down Car Dealerships. They need the option of zero down used vehicles.
I Cannot Afford A Down Payment
It may not be possible for everyone with bad credit to put up a down payment.
In recent years, new vehicle inventory costs rose by an average of just over one percent for the fifth consecutive year after declining between 1998 and 2008.
However, many Americans are finding that their paychecks are not increasing to match the rising price of new cars.
This promotes buying a car with bad credit and no money down.
Victims of a car accident can find themselves without a down payment right after an insurance company totals their car. The small payoff will not replace the car they lost.
Financing a car with bad credit and no money down is their first option.
Valley Auto Loans finds loan packages for people like this with bad credit issues and loan programs for low-income auto loans to many people who make $1,500 or more a month and have a steady low-income job.
Our auto loan application allows you to enter the amount you would like to use as a down payment, from zero down to what you think you can afford.
There’s Still Hope
The lender will see this when they review your application and will take that into consideration when making you a loan offer.
That way, you are matched with a lender that fits your needs.
Remember that a bad credit auto loan lender looks at your job history and income above your credit score.
Fill out the application as accurately as possible to improve your chances of a better interest rate.
Lenders tend to accept higher risk loans at the beginning of each month to fill their loan quota for that month.
Applying at the start of a month may improve your chances of getting a better loan if you have a lower credit score.
0 Down Cars & Trade-Ins
Even though the person did not have to come up with the cash, they did have to use the value of their trade-in.
When the no money down car dealers advertise that they offer a zero down car financing program (to qualified buyers), it may be legal, and is a great pull to bring in customers, but, in this case, it is not true.
Zero Down Car Financing Lenders
Companies that finance auto loans consider no money down car loans riskier than loans where the buyer paid a down payment.
This is because
- The buyer has invested money in the car and is more likely to keep up the monthly payments.
- Statistics show that customers who choose zero down auto loans are more likely to default on the loan.
- Lenders may give the loan, but the interest rate could be very high.
- If the price is higher than the value of the car, lenders will most likely not give the loan because if the buyer defaults, the lender is stuck with an undervalued car.
Tips For Choosing The Best Car Loan
Before deciding to purchase a 0 down payment car loan, it is critical to understand your financial situation.
If you have a below-average credit rating and need a car loan with a reasonable APR, the first step is to check your credit report to be sure you qualify for a car loan.
If your credit is less than perfect, you can still obtain financing, although your interest rate may be higher than someone with excellent credit. It may be harder to get financing with poor credit if you do not have a down payment.
Valley Auto Loans uses lenders who specialize in auto loans for people with subprime credit scores.
These lenders look closer at the applicant’s ability to pay back the loan with a steady job and not rely on the credit score for the determining factor.
What kind of credit score to buy a car do I need? Many dealers and lenders are using a new credit score report that will have a different credit score than the one you see.
We do recommend, correcting any problems on your credit report before going shopping for a new vehicle is strongly advised.
You will also need to provide proof of income and address to the lender when you apply for the loan, so be sure to have that information available and take the right steps to reconstruct your credit score.
No Down Payment Car Loans: The Bottom Line
So what have we learned?
- Putting as big of a down payment on an auto loan as possible is the best option for reducing the cost of the car over the dealer who does not require one. In fact, any down payment is better than zero.
- If you have never been on a budget before, these concepts may seem very different to you. In any case, buyers should beware and go to the dealership with at least a little understanding of interest rates and the final cost of the loan.
- If you find yourself struggling to come up with a down payment, you should consider setting up a “simple budget” to help you get the down payment for a car from the money you did not know you had.
We do much more than give financial advice and find people excellent auto loans, so check out the tools available.
Sometimes financing a car with no money down is the only option for some people, but making sure you are informed about the difference between 0 down car loans and a small down payment could help you make the right decision.
Valley Auto Loans can help you find the best auto loan for you.
We offer safe no money down auto loans for those who need it, and most of our loans are designed to repair your credit as well as get you into a new car.
Car Finance For Good Credit
If you have no choice, and a zero down car loan puts you in a high payment situation, Valley Auto Loans can be the best company to refinance your car loan after your credit improves in time or if you want to remove a cosigner off of your original auto loan.
You can fill out an auto refinance application online with no cost or obligation.
You can also check out the blog and resources pages to help you make an informed decision for your 0 down payment car loan today.