Buy a Car with Bad Credit and No Money Down

Buying a car with bad credit and no money down is now a reality for many Americans that otherwise would not be able to qualify for a traditional car loan. With so many Americans filing for bankruptcy in 2008 and with record high foreclosure rates, a new breed of American consumers have arrived.

Many people that once had excellent credit ratings, established 401K retirement accounts and investments, are finding themselves without jobs, homes and the ability to obtain credit.

Fortunately, there are lenders that are meeting the demands of those seeking car credit.

This is great news for people that have been suffering from bad credit and are in need of auto financing. Buying a car with bad credit and having no down payment was considered a virtual impossibility 10 years ago. Now, the availability of lending sources online has opened the doors of opportunity to people that otherwise would not be able to obtain good auto financing with little to no down payment as wellas, with reasonable interest rates.

Even though this is a great opportunity for people that are in need of a car loan, one should not expect a prime interest rate of less than 9%. There are still general lending requirements that must be met.

For example, one must not have a bankruptcy that is still open. All bankruptcies must be discharged or dismissed and accompanying documentation proving the closure of the case are required.

Furthermore, any repossessions must have not been within the last 12 months, unless they were included as a part of a bankruptcy.

A minimum monthly income of $1500.00 per month is also required, however a joint household monthly income of $2000.00 or more may suffice.

It is worth noting that even though a down payment may not be required, it is still a good idea to lower the amount financed with an initial cash investment in the purchase if possible. Although generally not required, the benefits of a down payment do include a lowered monthly car payment, more equity in the vehicle and less money that is paid in overall finance charges.

Buy a Car with Bad Credit and No Money Down
Recommended by This Author