Can you get a no money down car loan with bad credit? If you don’t have the ideal credit score can you still get a car loan without a cash deposit?
These are two questions we hear a lot so we thought it about time we answered to everyone can learn the answer.
The short answer is yes. You can still access a car loan without a down payment even with bad credit. However, not all lenders will help and you may have a couple of extra hurdles to conquer before you find a car loan.
No deposit car loans
No money down car loans can be useful for those who cannot save for a deposit or who have no savings but still need a car. In a typical car loan, you would put cash down and use the loan to pay the balance.
In a no deposit scenario, the car loan covers the entirety of the sticker price of the car.
Lenders prefer you to have a deposit because it means a much higher chance of them recouping the amount of the loan should you default. If you defaulted on the loan, the lender would know that they had the equivalent of your down payment to offset any depreciation or losses from the sale of the car, so will be more willing to deal with you.
In a no money down situation, lenders don’t have that cushion so may be hesitant to offer a loan.
Bad credit car loans
We work with some excellent lenders who consider car loans in all kinds of situations. We know at least a couple of them work with people with bad credit because we have used them before.
If you don’t have a cash deposit, your credit history and affordability will come under close scrutiny. The lender will want to be sure that you’re a good bet and that you’re likely to repay the loan in full.
Much will also depend on the amount of the loan. The less you want to borrow, the more likely the lender is to deal. The more you want to borrow, the more careful the lender will be.
When all is said and done, you can still access no money down car loans with bad credit. The pool of lenders will be small and you will have to provide documentation for everything, but we can secure finance in this situation.
If this sounds like something you need, contact our team of car finance experts today to see what we can do for you.