Car Loans for Bad Credit with No Money Down

Posted by Jill Martin on August 9th, 2018

You may think that no money down loans do not exist. However, you are wrong, they do exist. In most cases though, these loans are offered only to people who have great credit histories and scores. So, what do you do when you have a bad credit record? The answer is simple. You look for car loans for bad credit with no money down.

It would be wrong to assume that the situation was any different before 2008 when the global recession happened. Even before 2008, people with bad credit had a really hard time getting access to these loans. One of the major problems with these loans is that the loan to value ratio is always on the lower side. This means that the subprime lenders, the sort of lenders that happen to specialize in these loans, finance lesser amounts for such cars. This in turn means that you, the borrower, have to make some down payment in order to make the rest up. This is the reason why so many people keep looking for bad credit auto loans with no money down.

Now you may be asking what the options that you have in this regard are. In case your credit record is a good one you might want to check with your bank or credit union first before you approach any other lender. Quite often it has been seen that these financial entities are willing to offer no money down bad credit car loan to a customer if she or he has a great credit record and been a loyal customer as well. So, in case you satisfy these criteria you could approach them as well. In case you are looking to buy a new car you can check if the captive car loan company of the car manufacturer has any such option or not.

At times, the top automakers out there also offer such loans as an incentive so that people come and buy their cars. Zero per cent car financing, as well as no money down car loans, happens to make up a big slice of the pie. You can also look for car loan no credit history if you wish to. In case you have a bad credit record you would be normally asked to pay either 1000 dollars or 10 per cent of the car’s selling price. The lesser amount in this case is applicable.