No down payment auto loan
How to Get a No Down Payment Auto Loan Today
Most lenders realize that consumers are strapped for
cash and people in the market for a car are looking for a no down
payment auto loan. A down payment doesn’t make good business sense
except it adds profit for the lender and added hardship on the
borrower. In fact, lenders will find a smaller pool of possible
borrowers by requiring a cash down payment.
Even if the borrower has money for a down payment,
he or she prefers to find an auto loan with no down payment in order
to keep cash reserves or to pay down other debt. The down payment
won’t lower the monthly payments enough to justify giving up cash
reserves that are better used elsewhere. Besides, there are too many
lenders who don’t require a down payment in order to compete with
Where to find a no down payment auto loan
The best place to find a significant number of car
loans with no down payment required is the internet. Here you’ll
find thousands of lenders competing for your business. Type into the
search engine your state + no down payment auto loan in order to
find the companies that advertise this type of loan.
Remember that lenders aren’t doing you a favor by
not requiring a down payment.
If one lender doesn’t demand a down payment, all the
others will follow since this is an attractive feature to borrowers.
Besides, a down payment only raises the bottom line for the lender.
Get a cosigner.
If you need a cosigner in order to get the loan, ask
a close friend or relative with a good FICO score. If you give
anyone a down payment, it should be a cosigner. Cosigning a loan is
risky and some cash money given to the cosigner who may be in need
of cash may help persuade them to cosign a car loan for you. Show
them your plan for paying off the loan and getting out of debt.
You need adequate income.
Lenders tend to approve an auto loan when the
borrower has adequate income that is stable despite his or her
credit report. A low debt to income ratio goes a long way in swaying
a lender’s decision to approve your loan.
Purchase an affordable car.
If you buy an affordable car that runs well rather
than a flashy car that is too expensive for your present financial
situation, you’ll appear to the lender as someone who is serious
about getting out of debt and rebuilding your credit rating.
You may be able to obtain a no down payment auto
loan without following any of these steps—they are that easy to get
these days. However, if your credit score or low income is a great
challenge for you, incorporate one or all of the methods to increase
your chances of getting this type of loan. You have the benefit of
the internet to seek out the money you need to purchase a car.