How To Buy A Car With No Down Payment
It’s a tough predicament. One that might leave you feeling a little hopeless. But it’s not an uncommon one. Raise your hand if this scenario sounds at all familiar: you have a car that isn’t worth the repairs any more, limited financial resources, a less than stellar credit score, and the need for a new vehicle ASAP.
Regardless of how it happened, no matter how you got to your current financial state, we’ve all been in situations like the one above. And since owning a car is basically a necessity these days, obtaining one for all your lifestyle needs is crucial. So how do you navigate getting a new car when you're unable to provide a down deposit?
It’s entirely possible. That’s why you have us.
Assess your financial situation
Knowing where you stand in terms of your personal finances is your first step. 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 that, when you apply and are approved with our program, we work to find you the very best options out there. And the best part is – you are under no obligation to take offer. We want you to be happy with your car, and always encourage you to take your time and consider what will work best for you. Take your time.
Keep calm and co-sign
If, 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 is tricky; having someone’s financial life relying on your own behavior is stressful. You’ll also want to have a clear arrangement on how the car is being used and who is the true owner; an argument over finances with a cosigner is unlikely to be a happy experience. If you’re making all your payments on time and maintaining a clear record of your loan, you should have nothing to worry about.
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.