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Bad Credit Car Loan With No Money Down Financing

If you have bad credit and are searching for a car loan with no money down, perhaps because you lost your job or just do not have the money to put down on the car here are some things you could do. I know, I know, it can get frustrating going to auto dealer to auto dealer and every one is wanting some money down. You have to understanding that there are reasons why the dealer would want some money down on the car. One, is that it ads immediate cash to their bottom line, and the other is that your down payment indicates how serious you are.

Watch Out for Car Sales Men

The dealers and car sale men are very smart and they will try to figure out what is your motivation for buying a car and used that to determine price, down payment and other fees. Many car buyers think that because they have bad credit or little credit history that they would have to finance their vehicle through the car dealer.

This can be a serious mistake. Instead you should shop around for the lowest interest rate on the car. Local banks, banks in your city or town, and other financing institutions do lend money for car loans and sometimes at a much lower rate than car dealers.

Interest Rate is Most Important Aspect of Car Loan

Many dealers can make up the prices of the car and the interest rate bases on the conversation that they have with you. Take this scenario, for example, a car dealer submits your car loan application to their favorite lender. The lender may offer an interest rate of, say, 7%, the car dealer, in turn, charges you 12% and pockets the extra 5% in interest, plus the profit on the car.

That 5% is a lot of commission for the car sales man and his supervisor. This can drive your payment up to $50 or more a month depending on the interest rate and value of the loan. For instance, a $8000 car loan at 7% interest with a 3 year or 36 months contract will result in you paying $247.00 a month and $893.00 in total interest at the end of the loan. With a 12% interest, however, you monthly payments will be $266.00 and your total interest owed will be $1566.00, a difference of $673.00 in interest paid.

Get Car Loan Quotes From Multiply Lenders

So to purchase a car with no money down or zero down payment with low interest financing you should seek car loan quotes from multiple lenders. This will allow you to get pre-approved for your loan.

You can then walk into the dealership select the car of your choice based on the value of your loan and drive home feeling confident about your purchase. Irrespective of the fact that you may have bad credit or little credit there are banks that will be willing to work with you and offer flexible terms with reasonable interest rate.

Flexible Options in Buying Your Car

More importantly, because you are pre-approved that places the negotiating power for a good price in your court. So you can pay with no money down, some money down or you can trade in your vehicle.

Trade ins sometimes allow you to negotiate an even better price. Car Down Loan provides the right information on Applying For a Bad Credit Car Loan, No Money Down Car Loans, Bad Credit Car Loan Financing Lenders Online and details on Bad Credit Car Loan Refinancing.

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