No Money Down Auto Loans – Buy A Car Even If You Don’t Have A Down Payment Amount
3 years ago classiccarsworld24 0
“You can live in your car, but you can’t race your house.“
This simply explains the importance of a car in our life. We Americans are truly autoholics. Cars are the ultimate passion for us. Sadly, buying a car has become extremely difficult today. Economic downturn has taken a toll on everyone. Dealers and lenders have become extra cautious and demand high down payment amounts. But, they don’t understand that not everyone can afford a huge down payment.
Well, the good news is that there are few empathetic lenders left. They still care about you and offer you the opportunity to buy your dream car. There are several options available with you to drive your favorite car. You can avail the no money down auto loan. It will help you buy a car without putting down any substantial amount of cash. You can avail this type of loan even if you have a fixed income or a previous bankruptcy. So, you are no longer required to worry about your low income and low affordability.
Your interest rate may be somewhat increased. It is obvious as the lender’s risk will also increase. But, when you compare the increased interest rate with the advantage of finally being able to drive a car, it seems trivial.
It is good to trade-in your car. If you trade your old car for a new one, you will be able to reduce the value of your loan. This is beneficial because it tackles one major problem with no money down auto loans. When you drive off the car, it will obviously lose some value. And, when you don’t pay any down payment, there are higher chances of having an ‘upside-down’ loan. This is a very perilous situation. But when you trade-in a car, your risk will automatically reduce.
An important tip is to buy GAP insurance. It will cover the different between the value of your car and the amount you owe. When you avail no money down auto loan, chances are you will need it.
You shouldn’t worry if you don’t have an old car to trade-in. You can make use of the high rebates offered to you while buying a new car. Rebates are offered by manufacturers when you buy a new car. You may decide to put that amount as down payment or may even decide to forgo rebates. If you decide to forgo rebates, you can ask the dealer to let you avail a no down payment option.
Standard Paperwork – You Don’t Need Anything Else
Availing no money down auto loans is simple. You will be able to get approval even with bad credit score.
All you need to show is a proof of your current employment. The last two pay stubs will be enough to certify that. If you are self-employed, tax returns of the past two years are required. Generally, lenders want to ensure a clean vehicle title. They will also need you to buy minimum auto insurance.
Your car’s VIN, purchase price, year, make, model, mileage, etc. will be asked.
If you see the big picture, these loans can help you in a big way. If you make regular monthly payments, your credit score will definitely improve.
So, this means you just have to be a little smart while availing no money down auto loans. If you avert the risk of an ‘upside-down’ loan, it will be a win-win situation for you. You get to drive a car and that too without any down payment. This means you can either save that amount for any other purchase or even use it to pay off other debts.