Not everyone has the ability to save for a down payment. Some people need the car in a hurry, to get to work or replace a car that’s now scrap. Some people just don’t have the patience to save endlessly for a down payment. In all those situations, it is definitely possible to get a car loan with no down payment. Our Ayr auto loan team explains further.
Car Loan With No Down Payment
First off, we need to say that we always recommend down payments for auto loans. They reduce the amount you need to borrow, they lower the LTV of the loan which improves your chances of being accepted and they reassure lenders that you have money in the game.
That said, we appreciate that not everyone has the luxury of time to be able to save up for a down payment. As long as you can make the auto loan payments and have a sufficient credit score, you can still get a loan.
You can get no money down auto loans for bad credit too but we’ll cover those another time.
Auto loan down payments
If you don’t put money down, your monthly payments will be higher and the interest rate may be slightly higher too. Otherwise, the application process is largely the same.
Expect to justify how you cannot afford to save for a down payment but can afford to pay the monthly loan payment though!
That’s easy if you need a car immediately for work to replace a broken down or scrapped car. There are lots of reasons why you may not have a down payment and all of them are likely equally valid.
The loan application process
If you have applied for an auto loan before, the process is exactly the same.
Check your credit report and credit score, set a budget, prepare your trade in if you have one, get your paperwork together, get prequalified for the Ayr auto loan and put everything together ready for the loan.
We recommend auto loan prequalification for all clients but especially if you don’t have a down payment. Not all lenders are willing to lend 100% of the money and others might charge higher interest rates if they do.
We know of plenty that will lend and won’t hike the interest rate too much so you’re in good hands!
Once you have prepared fully for the loan, find a car within budget and contact our Ayr auto loan team. We can find you a great deal on a car loan to buy the car. We can even help prepare your application, help you with loan preapproval and with the loan application. It’s what we do!
Let’s be completely honest, getting an auto loan with no down payment is possible but not as easy as if you had one. But, work with us and we’ll find you a great deal on a loan with a competitive rate and we’ll have you up and around in no time!
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 with no down payment today!
For any questions or concerns, please don’t hesitate to contact us here!