If you're in the shop for a vehicle and have bad credit, you've probably been asked by a car dealer or two about whether or not you have money to put down. This is common and depending on your credit score, you may or may not have to have a down payment. All car dealers have separate requirements for money down and it can depend on a whole of factors. Here, we'll take a look at how separate types of car dealerships and lenders view down payments, as well as, how they can work on your loan approval.
New Car Dealerships
Buy a Car With Bad credit With No Money Down
Most new car dealerships are able to apply rebates and incentives to sell out the need for money down. If you have negative equity in a vehicle that you're trading in, you may have to contribute money down to cover the negative equity so that it's not carried over into your new loan. While buying a new car while having bad credit isn't so common, there are many manufacturer's that offer lower priced new cars with consuming financing incentives to make buying easier for habitancy with lower credit scores. Kia and Hyundai are known for their bad credit financing programs and this may be something worth finding into if a new car is what you're concerned in. You may wish to call your local dealer to find out about current rebates and incentives that you can use in lieu of a down payment.
Used Car Dealerships
Buying a used car without a down cost requires the right aggregate of car, book value, trade-in value and credit score. Most lenders will only allow a sure percentage of the book value to be loaned on a used car if you have a low credit score. Therefore, you'll have to focus on vehicles that have a good ratio of sale price to loan value. If trading, negative equity can once again cause you to need money down in order to not carry over too much money onto your new loan. This all depends, as every circumstance is different, although it's not uncommon for a used car dealership to be able to work the numbers in your favor so you can buy with as wee money down as possible.
No comments:
Post a Comment