Even though you might be able to afford the monthly payment that goes along with buying a car, one thing that you might be worried about is coming up with the down payment. Even though down payment amounts vary, the traditional amount to put down is 20 percent. Even though new car buyers are now often putting down less, the average is still around 11 percent. If you don’t have this kind of money on hand, you could be wondering if it’s possible for you to buy a car at all. However, there are, in some cases, ways of buying a car without putting down a down payment at all. These are a few of them.
1. Have Good Credit
First of all, if you have good credit, you should know that it will probably be much easier for you to find a car that you can purchase without a down payment. After all, lenders that make loans so that people can buy cars are often looking for people just like you. Check your credit report before you start shopping for a car; if what you find is positive, then make sure that you use your good credit score as a negotiation tactic to try to get both a zero down payment financing offer and a good interest rate.
2. Buy With Someone Who Has Good Credit
If you don’t have good credit, you may still be able to get a good interest rate on a car loan, and you might still be able to get a car without putting down a down payment. what you will generally have to do, however, is to co-sign for your vehicle with someone who does have good credit.
3. Shop Around for Ideal Financing
If you don’t have good credit and if you don’t have a co-signer who has good credit, then your options for buying a car without a down payment might be limited. However, you should still shop around. Sometimes, dealers work with banks to offer great deals to their customers just so that they can sell more cars. Even though you might have to do more hunting around, you might be able to find a financing option that either doesn’t require a down payment or that will allow you to put a low down payment on the car that you’re buying.
Even though it’s true that you will generally have to have some sort of down payment when buying a car, this is not always the case. These are three scenarios in which you might just be able to find car financing without having a down payment. If you are willing to put in the work and if you are able to find the right opportunity, you might just be able to buy a car without having to put any money down upfront. Then, you can drive off of the lot without worrying about having to drain your bank account in the process.