Most people think of purchasing a brand new car or truck as of something distant because they either are worried about their credit rating or are afraid of a high down payment they would have to come up with that they do not have set aside. The best solution for most consumers is a zero down payment car loan.
Do Not Go By What Dealers Tell You
Many car dealers attract customers by advertizing zero down payment financing on new vehicles with low monthly payments. They advertize great deals everywhere, from local papers to radio, TV, and internet. However, once it comes down to reality, most of these promises fail. Once you are in the financing office after a test drive at your local dealer, in most cases, you are approached with different terms than advertized.
Most finance managers would simply tell you that the offer had expired, or you did not qualify for preferred financing due to your low credit score. Then they give you an offer for financing with a down payment and a higher interest rate that most people would take, as they see no alternative. You drive away in a brand new vehicle, happy with a car but upset with the financing terms, and managers and owners of a car dealership fill their pockets with bonuses and commissions they get from auto financing companies for marking up the interest on a loan. This is the way it works.
Auto Dealers Are Not The Only Source For Vehicle Financing
There is a pleasant alternative, however, that most smart consumers have taken advantage of already. Auto dealerships are not the only ones that grant loans, and there are other lenders that would pre-approve you, before you even step your foot in a dealership. Most independent auto finance companies operate online, avoiding any intermediaries in the lending process, allowing consumers to enjoy lower rates and better auto loan terms. Most of them utilize lender-matching platforms that allow consumers submit one application only to enjoy multiple loan offers from different auto finance companies at once. Most, if not all, of these lenders offer better terms that your local bank or dealership may present you with. This is how you may get ahead of the game and avoid empty promises of zero down financing from your local dealer.
Qualifying For A Zero Down Loan Is Easy
Another common myth that people believe in, mostly due to influence of auto dealers, is that only people with excellent credit may qualify for zero down loans. Some dealers even fool the customers by telling them that they have special relationships with certain lenders. Online lenders do not care about special relationships – they are in the business of granting loans for qualified individuals and making money. You may be surprised that the qualification criteria for zero down loans from lenders online are more relaxed when compared to banks and dealership financing. They mostly need proof of steady employment and disposable income to cover loan payments, and do not worry too much about your past credit mistakes. In addition, they make preapproval decisions in a heartbeat, and may get you a blank check the next day, that you would be able to use at any dealer of your choice.