Many people in America think that it's near impossible to get car loans without a down payment if you have bad credit
. The truth is that you can still get car loans, the only problem is that it will depend on numerous factors which will also include your income. You will also have to look at car loans options that offer higher interest rates and some might also ask for a down payment sometimes as much as 20%. All of this however can be avoided if you are able to get your point across to the lender that you can pay off the car loans you are applying for. Another thing is that getting these car loans is not a very speedy process.
Not all credit companies determine your honesty by your credit report. Though many car credit lenders will critically analyze your credit score before they approve the application, a lender specializing in bad credit car loans would rather show flexibility and would rather increase the interest a notch than disapprove your application. Things such as your career or an upcoming raise or promotion are also taken into consideration in your benefit.
Though many car dealers don't require you to pay a down payment, lack of down payment usually fetches higher interest rates. Usually people offer to pay a down payment of at least 20% to get better interest rates. A good down payment fetches lower interest rates because it decreases the risk factor that the lender would have to take when lending you the required capital. If you own an old car you can get it appraised for the newer car, model or make instead of paying the down payment. This way you will only need to pay the difference in the prices of both cars and it is much like a down payment.
There are a lot more online creditors than offline and it would be a good idea to check them out, you can never know which way fetches better rates. Besides you can apply for quotes from online lenders by filling out their online forms free of cost, on a no-obligation basis. Definitely something you would not be able to do while dealing with a regular car loan lender.
Remember to be sure you purchase the car you need and can afford, not the car you like and your budget cannot afford.