Car Loan With Bad Credit and No Down Payment Money Advice
| Zero Down auto loan or auto loans with zero down payment means that the customer does not want to pay any cash towards down payment. For customers with bad credit, there is nothing like a car loan without any down payment. |
|
However, cash is not the only form of down payment that customers can make. Down payment can also be in the form of trade value and rebates.
If the customer is having any old car, he could use it as a down payment in the form of trade-in value. This trade-in value is determined by the dealer and is deducted from the actual cost of the new vehicle. For example, a person is having a used car whose trade-in value is $100. This value is now deducted from the actual cost of the vehicle, which is $15,000. Now the net difference in the transaction would be $14,900, the rate at which the customer is getting the new car. The disadvantage of this process is that the entire transaction occurs at the discretion of the dealer. However, customers should always try to negotiate with the dealer regarding the value of the old car, the value of the new car and the interest rate on the loan. All these three are separate entities and should be negotiated separately.
Sometimes, car manufacturers and dealers offer rebates at the time of launching a new car. With the objective of increasing the sales of the newly introduced vehicle, several promotional programs including zero down payment financing schemes are introduced. This is the right way to buy a car when one does not have sufficient money for down payment or when he has no car for trading in. However, these types of rebates are only offered to a selected group of customers having incredible credit scores of more than 700.
All these forms of no money down auto loan programs have terms that are very unfavorable in comparison with loan programs that require money as down payment.
|
