The Zero Down Car Loan and You

Depending on your credit score and what type ofto income ration is also good.
car you want to buy, you may be able to get a> If you've been turned down recently, you
halfway decent used car, and maybe even a newstill may be able to get a "special financing" loan if
car (if possible factory incentives are favorable)you finance through a dealer, and they are
for no money down. You should however bemotivated to sell you a car. Some dealers state
aware of a few things before you start jumpingthat all you need is to be currently employed,
for joy!have a recent pay stub, and you can drive a way
> Monthly car loan payments are based onin a car. Others advertise that "they offer
your down payment (zero in this case), thefinancing to anyone the law allows" but in reality
interest rate, and the number of months in thethat statement sounds a little vague and
repayment contract. New cars will generally qualifyopen-ended.
for lower interest rates and longer repayment> Dealerships aside, if at all possible find
schedules, with used cars being the opposite.financing before you shop for a car. This may not
> If you are currently in a Chapter 13always be an option for you but if it is, your
Bankruptcy, most lenders require that you havechoice of autos that you can purchase will be
completed 2/3rds of it in order to qualify formuch greater.
(any) car loan. However, If you have a trade in> If you have a trade-in that's in relatively
that is part of the Chapter 13 Bankruptcy thegood shape, your chances of getting a zero down
likelihood of being approved for the loan is muchcar loan increase by about 100%. This is because
better. If you've had a bankruptcy in the pastin reality, the trade-in value of your old car is a
don't despair as you still may be able to getdown payment so you're really not driving away
financing for a car but it might take you a littlewith a no-money down loan.
longer, and it may not be a zero down loan.In summary a zero down car loan is not for
> If you have little or no credit history, aeveryone, nor is it available to everyone but it's
cosigner will help your chances of getting a loan assomething to consider if you don't have a lot of
long as their credit score is good, and their debtcash on-hand, and you want to purchase a car.