No deposit car loans, or no money down car loans, are a viable way of raising money for a new car. They aren’t for everyone and won’t be the best option in every situation but they are an option. If you’re looking for a car loan in Flamborough and don’t have a down payment, this could be the product for you.
What is a no deposit car loan?
For once, the name actually means what it says! A no deposit car loan means no down payment on the car. You borrow the full amount for the vehicle without a reduction for your down payment.
We don’t always recommend this type of loan as it can leave you exposed, but if you cannot raise a down payment, they are definitely an option.
What are the benefits of a no deposit car loan in Flamborough?
The main benefit is the instant gratification of being able to get a car loan without having to spend months saving a down payment. If you’re not in a position to save and don’t have a car to trade in, this can be the fastest way to get a car.
No deposit car loans can also be cheaper than other forms of car finance, which is an added benefit.
What are the downsides of a no deposit car loan?
The downside of a no deposit car loan is that it can be harder to qualify and you can be left exposed to going upside down.
Lenders like down payments because they know at least some of their money is guaranteed to return in the event of a repossession. They also appreciate your commitment to your new arrangement by putting your own money down.
A down payment can also insulate you from going upside down. For example, if you buy a new car, it will quickly depreciate and can leave you owing more than the car is worth. A down payment can offset a lot of that depreciation.
The good news is that going upside down is only really an issue of you want to sell the car or refinance the loan. If you plan on keeping the car for a while, it’s largely irrelevant.
What car can I buy with a no deposit car loan in Flamborough?
There are no restrictions on the type of car you can buy. The only restriction will be on the type of car you can afford. You can buy new, used, a sedan, SUV, truck or something completely different.
The only limit is the price.
How do I apply for a no deposit car loan?
You apply for a no deposit car loan in Flamborough the same way you apply for any loan. Get your paperwork in order, work out how much you can afford to borrow and then contact Dixie Auto Loans. We can help with the rest!
No deposit car loans are not suitable for everyone or for every situation. If they are suited to your situation, we can help secure a competitive deal. We can even help you find the car to buy too!
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!