Yes, you can get a car with no money down, but unless you’re planning to trade in your current vehicle, that zero down payment offer could mean higher monthly payments—and higher costs in the long run.
Can I get a car with no money down and bad credit?
The simple answer is no, you generally can’t buy a car with bad credit and no money down. A down payment is almost always required when taking out a subprime auto loan. The good news is you don’t have to shell out thousands of dollars to meet the down payment requirement.
How much should you put for a downpayment on a car?
For a used-car loan, you generally want to put down 10 percent or more of the vehicle’s sale price. This means buyers who want to finance the purchase of a $15,000 used vehicle should plan to put at least $1,500 down. Lenders may require more money down on a new car than a used car to offset its quicker depreciation.
What credit score do you need to get 0% financing on a car?
While lenders don’t typically share what your credit scores should be in order to qualify for a 0% APR auto loan, credit scores of 700 and higher (on a scale of 300 to 850) are typically considered good. A score of 720 to 750 or higher may give you an even better shot at getting approved.
Can I get my down payment back on a car?
You should be able to get your down payment back if you purchased a vehicle. If you left a down payment but told the dealership you wanted it back upon purchasing the vehicle, your down payment will be returned if it was not applied toward the vehicle’s purchase price when you obtained financing.