If you have bad credit and are interested in purchasing a new car, you may be wondering about no down payment car lots. These dealerships offer financing without requiring a down payment, and they often advertise as “buy here pay here” car lots. These lots are designed to cater to those with bad credit and are known for their aggressive marketing campaigns. Despite the low down payment requirements, there are several things you should know before making a purchase at one of these lots.
You May Be Wondering About No Down Payment Car Lots
The most important thing to consider when buying from a no-down payment car lot is your credit history. It is possible to finance a car with bad credit, but you will need to improve your score. This could take months or even years depending on your bank’s policies. While there are numerous no down payment car lots to choose from, it is best to take your time to compare offers and rates from different dealers. The process of comparison shopping will help you find a better deal and lower interest rates.
Another factor to consider when looking for a no-down payment car is the value of your trade-in. Although a monetary trade-in is ideal, dealers may attempt to manipulate it to their benefit. In tight credit times, financial institutions are likely to be more strict when it comes to credit ratings. Luckily, there are a few options for buyers with low credit scores. In many instances, trade-ins will reduce monthly payments and lower down payments.