Zero down car loans may be tempting, but these deals are generally not the best deal for you. In order to get approved for a 0 down cars loans, you need to have excellent credit. A buyer with excellent credit is more likely to make monthly payments and pay the loan off in a short period of time. This reduces the risk for car finance companies, which means that they can offer 0% financing to those with good or excellent credit. If your credit score is not that great, however, a 0% loan may not be for you.
How To Know If You Qualify For A No Money Down Loan
The first thing you should know about zero down car loans is that these types of loans usually require excellent credit to qualify. You may see a fine print on the automaker website that says “for qualified buyers only” or “based on Tier One credit.” The exact requirement for zero down car loans can vary between automakers. In any case, it is important to be realistic about your credit score before signing up for any zero down car loan. Even if you have a lower credit score than this, you should look into these offers. In some cases, you can be approved based on your history of timely payments or even your brand loyalty.
The next consideration is how long you plan to pay off your zero down car loan. Most automaker websites specify that the zero down car loan is good for three to five years. However, some of the zero down car loans are for as long as 72 months or six years. These are long terms and could make it difficult for you to downsize and upgrade to a larger vehicle. It is also important to note that 0% down car loans are only available to those with Tier One credit, so you should never assume that your credit score is low enough to qualify for a zero down deal.