Geting a New for for 0 Down

ne of the more popular internet search phrases is “Zero Down Auto Loans”. I would image the meaning of this to mean that the consumer wants an auto loan but does not want to use any of their own cash as a down payment. Customer cash is not the only form of down, there are two others; trade value and rebates.

If you have bad credit there are only a few true no down auto loan programs, and most of these I would not recommend. The repayment terms for these no money down auto loan programs are less favorable than lender programs that require money down.
Forms of Money Down:
Customer Cash

When most people hear “money down car loans” they relate this to “cash down”; there are a few car loan programs that require cash as a down payment, most, however, do not specify between cash down and trade value as down payment.
Vehicle Trade in Value

Most auto financing programs allow trade value as down payment to meet their minimum required down payment. Car dealers us this as a tool to help people meet the minimum required down payment. Here is how it works:

A consumer has a high mileage 2000 Ford Escort with a blown engine. Other than to a junk yard, the vehicle has no value. The dealership appraises the vehicle, sight unseen, at $100.

The consumer wishes to purchase a used 2007 Dodge Caravan for $15,000 with no cash money down. The most favorable auto financing terms that the car dealer was able to find is with a car loan lender that requires a minimum of $1,000 as down payment.

The car dealership structures the deal with a selling price of $15,900 and gives the consumers $1,000 for the trade. The net difference in the transaction is $14,900. The same as it would have been if the dealer sold the car for $15,000 and gave the customer $100 for the trade.

New Car Rebates

Many lenders allow new car rebates to meet their minimum required down payment. So if you looking to buy a car with no money down and do not have a vehicle to trade, consider a new car with a rebate as a zero down alternative.
Summarize

There are auto loan programs available with zero money down. If you have zero cash down, however, you will most likely get more favorable terms from lenders if you have a vehicle to trade in or buy a new car with a rebate.