Buying a New Car With No Downpayment
Owning a car is basically a necessity these days. But saving for a downpayment for one can often prove to be tricky. If you don't have the funds for a downpayment on your next set of wheels, fear not.
Assess Your Financial Situation
Knowing where you stand in terms of your personal finances is your first step. Which is about as fun as getting your hair pulled out of your scalp, we know. If you aren’t up to speed on your current spending habits, you may want to consider speaking to a financial advisor or trying out of one of those new-fangled apps that are all the rage with kids these days, the kind that manages your money and budgets for you. You’ll also want to consider taking a look at how you appear to lenders. For instance, how long have you been at your current place of work? And address? How much do you make in a year? What’s your credit score? It may be hard to buy a new car without down payment when you have a poor credit rating, but if you can show that you have a steady income and making sure you don’t have any loose ends like unused credit card accounts, as well as having a stable job, you’ll be more appealing to an auto lender.
Explore Your Options
You don’t have to settle for the first deal you encounter, especially if there are high-interest rates involved. Checking with local credit unions or banks can help you access whether you can qualify for a potentially better auto loan. Not to mention when you apply and are approved within our program, we work to find you the very best options out there, so everyone wins! And the best part is – you are under no obligation to take any offer. We want you to be happy with your car and we always encourage you to take your time and consider what will work best for you.
Keep Calm and Co-sign
It, at the end of the day, you still are not able to get approved for that auto loan, consider co-signing for the new vehicle with a spouse or family member. In this scenario, the car loan will be placed in their name, with you as the secondary borrower. Just be careful to make all your payments on time, as having a co-signer means shared responsibility, and therefore two credit scores on the line, which can be tricky and lead to not so fun conversations. Having someone’s financial life relying on your own behavior is stressful.
The bottom line? Buying a car with no down deposit and bad credit is possible. So don’t beat yourself up about your financial situation. We work with all credit standings, and work to get you the very best options for financing out there.