If a dealership refused to approve your car loan because you have no credit history and no money down, that should not stop you from trying to get financing to buy a new car. You are probably asking the wrong lenders, especially in house financing at car lots. A better approach is to try online car loan companies willing to help you.
Many car manufacturers are stuck with a lot of inventory due to poor car sales, so you will be able to bargain and get a cheaper price if you have already secured financing from third party lenders. Most online lenders will accept any credit score for car loans because it is secured using your new car. They can repossess it if you fall behind payments so do take note. Hence, consider buying a new car when you can really afford it, whether you have good or bad credit.
It is easy to find direct lenders for loans online, so you do not have to go over to the various buy here pay here car lots in your area to negotiate. Try these legitimate lenders that give car loans with no money down, they will issue a check for you to purchase your dream car or truck.
So you should not have any problems with so many ways to get approved for bad credit car loans with no money down. On the other hand, it is actually much better for you to offer some money down, in order to save on interest fees.
Try to use legitimate online car loan companies accredited with the Better Business Bureau. You will face less problems and unwanted surprised by working with honest and real lenders to buy a car with no money down and poor credit. It is true that there are many dishonest buy here pay here car lots that will prey on unsuspecting buyers. Do not feel pressurized to accept in-house financing when you can get cheaper rates online.
An easier way to compare free car loan quotes is to use free online quote services that only require you to fill in an online form with your ZIP code and monthly income etc. They will check with many lenders and instantly return a list of lenders that will approve a no money down car loan for you. Typically, as long as you are employed and have a stable income, you can be eligible for car financing even with bad FICO score.
The internet is the best place to get fast no money down car loans. Using the brokers’ quote comparison services, you can go for the cheapest rates and lowest monthly car payments. You will also be free to shop at any car dealership with the lowest car prices since you are using third party financing. A common problem encountered by car buyers is that you cannot get approved for an auto loan at places with great car prices, and at buy here pay here car lots, there are no vehicles available for sale that looks good.
With BBB accredited car loans, you get a check from the lenders to pay for your new car. Simply visit any dealerships and bargain for a better car prices, telling the sales person you have already secured financing and is ready to buy. Thus, the car lots will realize you are a serious buyer and more willing to compromise and give discounts or car accessories. You can also choose to buy used cars for sale by owners. There are many cheap used trucks and cars in good condition on classified ads, online car trader, eBay Motors, Craigslist etc. When you have bad credit and no money down for buying a car, reducing the amount borrowed via buying used cars on sale by owners makes a lot of sense. The interest rates are just as expensive as other types of bad credit unsecured loans.
Car loans from banks tend to be cheaper however their requirements are also stricter. If you have a bank account in good standing or at a credit union, try asking for auto loans with no money. If you do not have any overdrafts in the past and maintain some minimum balance in that account, you stand a good chance. Banks will also check that you have stable employment or income and your residence address should not have changed for the past 24 months. The maximum car loan calculation should depend on how much you earn, but banks are likely to give you a lower quote compared to online lenders.
We strongly advise first time car buyers to avoid exorbitant car loan rates at buy here pay here dealerships. Furthermore, these are unlikely to be the cheapest place to buy a truck or car. There are many car financing lenders that offer car loans with no hidden fee and fast income verification. BHPH car dealers are more convenient if you are going to trade-in an used vehicle that is fully or almost paid up, that is no negative equity. Then again, you may as well sell off your old car and pay the money down when buying a new car today.