If you have bad credit, getting approved for an auto loan is still possible. However, the lender will likely want you to have a down payment. While a lender is able to provide zero down payment offers to car buyers with great credit, they will need some kind of financial assurance from you due to […]
When it comes to subprime auto loans, dealers often have minimum down payment requirements that their lenders need in order to approve a deal. Yet these requirements are often lower than the 20% down payment that financial experts recommend. If you want to improve your ownership position and make a substantial down payment, it starts with having a savings plan.
You’re at the dealership. You’ve found the car. You’re ready to buy. But then, everything comes to a screeching halt. The salesperson tells you how much they need as a down payment. Your jaw drops. “How much? You have to be kidding me!”
If you’re thinking of buying a new or used car, truck or SUV, you may be tempted by “no money down” offers. However, if your credit is damaged, there is a chance that you may not qualify for these offers. Yet, even if you do, you may want to consider saving up a down payment anyway.
Most lenders who work with borrowers with poor credit scores will require a down payment for a car loan. These down payments can be in the form of cash or real trade equity (in other words, the vehicle must either be paid off or the value of the trade-in must be more than the amount owed on the loan).